Question: Supplier F asked why the supply manager had requested bids at all if his mind had been made up all along. Supplier F said that
Supplier F asked why the supply manager had requested bids at all if his "mind had been
made up all along." Supplier F said that the order should have gone to the lowest bidder who
could provide the object desired. He said he could meet the specifications and could deliver
to any schedule supplier D could meet. He demanded the order, and when the supply
manager informed supplier F that "final selection of the supplier is entirely my province," the
supplier raged that he would "spread the word to the trade" and would write the Collier
Company president, who "should know of such favouritism and incompetence." He further
stated that he even suspected that money had passed hands for this order.
The supply manager was upset by these calls and did not enjoy his supper on May 9.
1. What suggestions might you have made in the supply manager's handling of this
matter? (3 marks)
2. What would you recommend that he do now and why? (5 marks)
3. To what extent would you concur in the supply manager's belief that suppliers
should at least be allowed to recover direct costs? (2 marks)
4. Who do you feel should have received the order and why? (5 marks)
5. What are the weaknesses inherent in the competitive bidding process? discuss
(5 marks)
6. Discuss "benchmarking" in relation to Collier's tendering procedure that
was used. (5 marks)
7. Do you think best operating practises was used to select appropriate supplier? If
yes/No, kindly discuss. (5 marks)
8. With regards to best practises in improving productivity, do you think production
employees seated at high stools instead of standing at their work benches will
add value? Discuss (5 marks)
9. In relation to defining operation management, do you think that the
administration of this tender equid a fair business practice? Discuss (5 marks)
10. Discuss "information management "as one of the best OMP in relation to how
Collier tender was awarded (5 marks)
11. What will be Collier's benefits if the new operation plant achieves its
objective? (5 marks)
Total
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