Question: Reconsider Figure 2 . 3 . Suppose Supplier B improves its conformance quality so that the chemicals it produces are now 9 9 . 9
Reconsider Figure Suppose Supplier B improves its
conformance quality so that the chemicals it produces are
now pure. The chart at the top of this page shows
the new competitive situation:
a Will this be enough to make Supplier B competitive?
Which supplier do you think will win the business?
b Managers at Supplier A have determined that if
they increase the minimum order size to liters, they
can decrease their costs to $ per liter. Should they tableABCDEGCalculating the Value Index for Two Alternative SuppliersPerformance: "poor" to "excellent",,Importance: "completely unimportant" to "critical",,Performance,Value IndexImportance,Supplier Supplier Supplier Supplier Performance quality,Conformance quality,Delivery reliability,Delivery speed,Cost,,Mix flexibility,Volume flexibility,Totals:,
do it Explain your logic. Hint: There is no single right
answer to this problem.
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