Operations Management Case Solutions

1. Explain why supply chain management should be aligned with corporate strategy. Justify your answer with an example.

In the case “Metalcraft Supplier Scorecard”, the author uses an example of a decision-making problem regarding to which supplier should Metalcraft choose to lead to the topic of the Metalcraft supplier scorecard. Metalcraft, as a component designer and manufacturer, supplies a few largest automobile manufacturers with vehicle parts all over the world. As one of the tier 1 suppliers, Metalcraft offers and ships finished parts and components using in the automobile production process to automakers.

The Supply Chain Management System used at Lowe’s is a collaboration process. According to LeRoy Allen, Senior Vice President of Logistics for Lowe's Companies, as cited by Real Results Magazine (2012), Lowe’s has more than 3,000 suppliers and having effective communication with all of them is difficult. Providing them with key information helps them, not only run their own business but assists Lowe’s in running theirs. This model was designed to efficiently run the supply chain together (para. 2).

The recommendations I would suggest for structuring the supplier relationship process for the Wolf Motors dealership network are Wolf Motors should consider a centralized corporate level Materials Management System to consolidate buying decisions for each of the 4 dealerships. This would facilitate greater leveraging with suppliers for consistent quality-control. They should study, calculate and make effective decisions on the materials that should be brought for each of the four dealerships instead of allowing each dealer to do it on their own. An automated

This is something that must be addressed in supply chain management because if one area of the company is operating below capacity the other sectors will not be able to make up this lack of production. Another main component of supply chain management is how to handle damaged goods. It is a waste of money to send out defective products because it costs the organization large amounts of money to recall the damaged materials back to the factory and replace them, slowing production efficiency. There must be quality controls and regulations that enable Ford to minimize inventory defects and returns. The Ford Motor Company must have damage control operations to continue manufacturing the same amount of automobiles so that they do not lose any necessary inventory. There must also be procedures in place that deal with delivery systems and the delays and unsuitable materials that could easily occur. This paper will fully break down the previous issues associated with the Ford Motor Company 's supply chain management and operations. SUPPLY CHAIN MANAGEMENT OF FORD Synopsis of Supply Chain Management as it Applies to Ford The definition of supply chain management (SCM) involves taking a systems approach to the entire supply chain with the overall goal of reducing the level of risk and uncertainty throughout the supply chain. This will ultimately permit lower

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas.

AutoZone is a retailer and distributor of automotive replacement parts and accessories. With this retail market being saturated, AutoZone has faced tough competition from O’Reilly Automotive, Advance Auto, and Walmart. With the expansion of competition, over everything from price to parts availability, AutoZone decided to make an investment back into the business. Subsequently, AutoZone has strategically change the concept of its supply chain strategy to remain competitive. The changes includes increased frequency of delivery to stores and significantly expanded parts assortments in select mega hubs (Meek, 2017). In addition, more frequent deliveries facilitate lower part depth and higher breadth (Plexor, 2016). AutoZone has made strategic

3.1 For each hotel, what is the role of technology and the role of operations

What is the right supply chain for your product ? is the question asked by Marshall L. Fisher in his article titled, “What is the Right Supply Chain for Your Product ?” published in March-April 1997 issue of the Harvard Business Review. Author raises the question stating the fact that new ideas and technology implemented haven’t lead to improved performance. Performance has not become better but rather in at least some cases, has worsened due to costs rocketing to unprecedented levels.

Define the situation (case summary) Define the major issues, conflicts, and the network . Describe the options (alternatives) for solving these issues. Several internal and external influences serve as contributing factors in the reconsideration of the company’s current system. Changes in customer demands, domestic and global competition, and a unique decentralized management system is now forcing the Westminster Company to reevaluate their traditional supply chain practices. (Bowersox & M.B., 2014) Westminster’s domestic operations consist of three separate companies that sell and distribute products to several of the same customers. (Bowersox & M.B., 2014) At first glance consolidation of the systems can significantly improve

6. In your opinion, what are the key lessons from this case study for supply chain managers?

Dating back to 2013, the two automotive manufactures began discussing ideas of collaborating on an automatic transmission (Rosevear, 2016). The two brands began the collaboration in 2016 (Rosevear, 2016) on this project, as it would save millions over the combined sales between the two companies, rather than front the cost of developing individual parts. Most automotive brands source this part from a German company ZF Friedrichshafen (Rosevear, 2016), to save cost on producing a complex piece of mechanics for their automobiles. The logistics required to manufacture as well as supply this complex part of an automobile pose a massive cost in the industry. Furthermore, automobiles manufactured at multiple locations across the globe share this similar part, manufacturing it separately at each location poses many additional unwanted supply chain processes. By consolidating transmission production between Ford and General Motors, the logistics operation significantly downsizes for the two brands.

They need to build a steady supply chain by including their suppliers into their business model and providing them incentives in order to increase their profit margin. Because they are a new company it is very important for them to find the right partners specially when they are manufacturing cars which require different and technology advanced material to manufacture.

Silvaro Motors, a car dealership company, have four dealerships serving a metropolitan area of roughly two and a half million people with the latest dealership selling multiple makes of cars at the same location which includes a line of Daewoo’s from Korea, Mahindra’s from India and Chery’s from China (Waight 2015, p.2). The other three dealerships focus on three separate cars at each dealership (following an autonomous operation) which include Mitsubishi, Mazda and Hyundai (Waight 2015, p.2). The company gained immense strength and reputation from the three dealerships and prides itself on three success factors or policies namely volume, “hassle-free buying experience” and after sales service (Waight 2015, p.2). But, the new dealership complicated the issues of inventory management as it had to deal with three cars at the same dealership and balancing the stock was proving to be difficult and issues related to purchasing function and management of service parts, accessories and materials both at a supply chain level and as an internal function along with the lack of storage and financial resources added further pressures on the company (Waight 2015, p.2).