Question: In-Class Questions - Module 2 Part A Scenario: Sam's Snacks Ltd is a listed company that imports high-end snacks including ice cream, chips and chocolates
In-Class Questions - Module 2 Part A Scenario: Sam's Snacks Ltd is a listed company that imports high-end snacks including ice cream, chips and chocolates from several large suppliers in China, Japan and Korea which manufacture the snacks. These snacks are then sold to many small customers made of mostly Asian retail convenience stores across Australia. These snacks are highly popular among expatriates and international students from the countries that the snacks originate. Inventory is held in warehouses in all major cities of Australia with a central warehouse and operating headquarters in Sydney. In recent years, many of Sam's Snack suppliers have changed their ownership to new management that have changed their operating structure and manufacturing processes that have had a negative significant impact on the quality of snacks and the consistency of delivery. Accordingly, Sam's Snacks has moved to purchasing snacks from new suppliers selected by their overseas purchases officer. To avoid delays in organising contracts, no approval is needed to add a new supplier to the system. Purchase orders are made by the purchases department and inventory is sent by the suppliers directly to the individual warehouses which is costlier. Warehouse managers have pressure to deliver inventory to
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