Case chapter 10: Wolf Motors. 1: What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network? Recommendations for Wolf Motors in order to be able to structure their supplier relationship process are: ? They should consider a centralized materials management system to study, calculate and make the decisions on what will be bought for each of the 4 dealerships instead of allowing each dealer to do this on their own. By buying their parts in a higher volume (one central order for all four dealerships) they can negotiate a better price.
This would facilitate greater leveraging with suppliers for consistent quality-control. ? An EDI inventory management system that interconnects the main shop with each of the dealerships and has a link with the suppliers should be considered: The system would let them know on time if they are running out of any parts in any dealership and maybe if they have that specific part in any other dealership.
Parts could be provided between dealerships in emergency situations (inventory pooling). The link for the supplier would allow the supplier to prepare himself even before receiving the order. : How might purchasing policies and procedures differ as the dealerships purchase different types of service parts and materials (for example, lubricants versus genuine GM parts)? Wolf motors has to focus on price, quality and delivery in order to ensure after-sale customer service and customer satisfaction is achieved and maintained. ? Wolf motors have to take consideration in reducing the number of suppliers in the purchasing process by choosing a single source distributor for as many supply and product acquisitions as possible. ?
Wolf has to work with the distributor to identify and select only those brands or products that meet the quality standards which they have set. ? Wolf have to minimize the number of transactions necessary to maintain the desired inventory levels would allow Wolf to realize additional cost savings. 3: How can supply chain strategy help John Wolf reduce investment and space requirements while maintaining adequate service levels? With effective use of supply chain management, Wolf Motors can streamline the acquisition processes and maintain efficient inventory control while reducing unnecessary inventory warehousing.
In order to reduce investment and maintaining service levels high, wolf motors should do the following: ? To make sure of availability of parts and other stuff critical and necessary to maintain services that will ensure the customers needs and demands, a good relationship with the suppliers and developers has to be achieved. ? Historical inventory turnover rates should be analyzed so to identify the appropriate range of supplies to be on hand in each category. ? Adjustments to inventory levels should be made in order to accommodate demands during peak seasons and low selling months. Case chapter 15: Flashy Flashers, Inc.
Planned Order Release Form | | | | | | | | | | | | | | | | | |Item Description and Part Number |11 |12 |13 |14 |15 |16 | | | | | | | | | | | |Side Lens (SL111P) |0 |0 |0 |0 |0 |335 | | |Side Lens rubber gasket (SL113P) |0 |0 |100 |0 |0 |0 | | |Side Frame subassembly (SL112A) |80 |0 |0 |0 |0 |0 | | |Side frame (SL121F) |70 |0 |0 |0 |0 |0 | | |Side bulb subassembly (SL122A) |40 |0 |0 |0 |0 |0 | | |Flasher bulb subassembly (SL123A) |0 |0 |0 |0 |0 |0 | | |Side cable grommet and receptacle (SL131F) |0 |0 |0 |0 |0 |0 | | |Flasher cable grommet and receptacle (SL133F) |180 |0 |0 |0 |0 |0 | | |Side bulb (SL132P) |90 |0 |0 |0 |0 |0 | | |Flasher bulb (SL134P) |105 |0 |0 |0 |0 |0 | | |Head frame subassembly (HL211A) |40 |0 |0 |0 |0 |0 | | |Head lens (HL212P) |0 |0 |0 |0 |350 |0 | | |Headlamp module (HL222P) |70 |0 |0 |0 |0 |0 | | |Head frame (HL223F) |0 |700 |0 |0 |0 |0 | | |Back rubber gasket (C310P) |170 |0 |0 |0 |0 |0 | | |Screws (C206P) |0 |0 |0 |2500 |0 |0 | | | | | | | | | | | | These are the things that are going wrong: ? The marketing department takes last minute orders that aren’t planned in advance to meet the capacity of delivery of the company.
There are also many communication failures between the company departments. ? Some orders are more important than others so a priority and capacity reports should be created. ? Inventory records are not correct. This results in overproduction and underproduction that result in unnecessary costs. The MRP is good: Many of the problems with the MRP are results due to external procedures. Suggestions: ? Solutions should be placed on ordering procedures and correct entry of data. ? Schedule priority products/orders ahead of ongoing production levels. ? They have to start producing at least the quantity level ordered. ? They have to improve their time management when ordering products needed for production. [pic]
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