Question: Read the following case study and answer ALL the following questions: Progress Logic Corporation Dorothy Ng, the international procurement director of Progress Logic Corporation (PLC),

Read the following case study and answer ALL the following questions:

Progress Logic Corporation Dorothy Ng, the international procurement director of Progress Logic Corporation (PLC), is very concerned about the large number of orders placed for some of the companys least expensive components. PLC is a RM 300 million multinational corporation that manufactures office equipments. The manufacturing plant is divided into two separate divisions: fabrication and assembly. The fabrication division consists of 20 departments and assembly division is a pace assembly line consisting of 100 workstations. In the beginning of this year while reviewing the procurement process for the ball bearings, Dorothy discovered that the ball bearings are purchased from six different suppliers. The materials used for ball bearing are quite similar except the sizes of the ball bearing are different. Four of the suppliers are local and the two of the suppliers are from United States. The total purchases for last year were RM 3 million Dorothy called Jensen Ooi, the section manager and expressed her concern, Jensen, investigate why we are buying the ball bearings from six different suppliers. Produce me the data and your suggestion soonest possible The following day afternoon, Jensen informed Dorothy that each buyer had different reasons for using specific ball bearing suppliers. There are five different buyers responsible to purchase ball bearings. The reasons ranged from engineering advice and customer requirement. Dorothy interrupted, How much is it costing the company to purchase the ball bearings from these six suppliers? Jensen responded, Last year it cost the company approximately RM 300,000 to place individually triggered orders. The average ball bearing unit values from RM 2.00 to RM 350.00. Dorothy asked Jensen, What can we do to reduce our ordering cost and unit price of ball bearings? ..3/- Questions: 1. Identify and explain the orientation or nature of work in this procurement organisation. [10 marks] 2. Would you suggest to change the orientation or nature of work in this procurement organisation? If yes, what are the options and benefits from this change? [10 marks] 3. If you were in Jensens position, what are your recommendations to reduce the ordering cost? [10 marks] 4. Discuss your suggestion to reduce the unit price of ball bearings. [10 marks]

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