Your company, based in Trenton, NJ produces die cast magnesium parts that are used in many applications
Question:
Your company, based in Trenton, NJ produces die cast magnesium parts that are used in many applications from planes to digital cameras. Management has asked you to consider two opportunities: 1) to produce magnesium brackets that will be used in production of seating systems produced by Leggett & Platt in Troy, Michigan, or 2) to produce magnesium brackets that will be used in turbochargers being assembled in Ladson, South Carolina by Cummins Turbo Technology. The size and volume of the parts will be roughly the same and the dollar value of the two opportunities is about the same. Your company has found that in their niche market that obtaining a 'very satisfied' rating from a client based on logistical performance is the key factor in keeping customers after the initial procurement is completed.
Create a one-page memo to senior management explaining why achieving a 'very satisfied rating' from one of these companies will be easier than from the other. Assume that the quality of the parts in both cases will meet all specifications and your company and your price will be is cost competitive with the competition.
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase