Avion Case - Purchasing and Inventory Management


Read Case 1: Avion Inc. pp. 834-836. Then answer the questions/mandates:

1.  What parts of the supply chain are most closely involved with the situation in this case? 

a.  What is the responsibility of each part in order to maintain a smooth flow of material? 

  1. What initially appears to be the problem? 

a. What really is the problem(s) in this case? 

  1. How easy is it to switch suppliers? 

a. What could complicate a firm’s ability to switch to a new supplier? 

  1. What does it mean to get to the root cause of a problem? 
  2. What does it mean to be a good customer? 

a. Why does a buying firm want to be perceived by a supplier as a good customer? 

b. Provide specific examples of what a firm must do to be a good supply chain customer. 

  1. Explain the role of performance measurement in managing supply chain activities.

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