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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