What are the risks and rewards to consider in case

Assignment Help Operation Management
Reference no: EM133446254

This simulation involves negotiating the purchase of an automotive fabric. The following information is common to all groups participating in the negotiation: There are four potential manufacturers of textile products. These include the following: Athena Corp. - Annual sales of approx. $ 40 million dollars, located in Bowling Green, Kentucky.. Cybaris Corp. - Annual sales of approx. $ 50 million dollars, located in Charlotte, NC. Medusa Corp. - Annual sales of approx. $ 20 million dollars, located in Columbus, OH. Orion Corp. - Annual sales of approx. $ 35 million dollars, located in Grand Rapids, MI.

Prices for similar fabrics are in the $12.00 to $15.50 price range per yard. All identified suppliers are able to produce to specifications provided by the purchasing company. However, quality performance related to the product can vary greatly. Individual cost structures of the firms providing the fabrics can vary significantly. Suppliers provide widely different levels of service and technical support. All suppliers have to satisfy the same quality and delivery terms, payment terms, and transportation (FOB seller's plant). Industry capacity utilization is about 75 percent. All purchasing companies have purchased relatively small amounts from all of the suppliers previously, never totaling more than $100,000 per purchase.

Question:

What are the risks and rewards to consider in this case? How can the team balance these risks and rewards?

Reference no: EM133446254

Questions Cloud

Explain initial assessments of patient in er : Explain initial assessments of patient in ER after a trauma alert called for a 17year old with traumatic brain injury who initially had a GCS of 12 and now
How you would evaluate the effectiveness of the care : Describe how you would evaluate the effectiveness of the care provided (i.e. how will you know that your actions were beneficial to the patient?
Discuss 7 major criticism in article : Discuss 7 major criticism in this article and minor suggestions and comments for improvement of the article - Pre-Pregnancy Adherence to the Mediterranean
Retailer usually follow to increase responsiveness : What strategy does a retailer usually follow to increase responsiveness? What negative impact does this have?
What are the risks and rewards to consider in case : What are the risks and rewards to consider in this case? How can the team balance these risks and rewards?
Is an executive order the same as making a law : Is an executive order the same as making a law? What events tend lead to greater use of executive orders? Explain why.
What approach a phenomenological researcher would take : Can someone explain to me what approach a phenomenological researcher would take to explore the topic of same-sex adoptions in England?
What are the variables here that contribute to an upper gi : What are the variables here that contribute to an upper GI bleed - which won't be confirmed until further endoscopic procedures are performed
What is the process of the action potential at the cellular : What is the process of the action potential at the cellular level in the brain? What is the process of synaptic transmission at the cellular level in the brain

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd