Using the current and alternative supplier information that has been provided for FY2021, and the weights to be considered for each supplier characteristic, you are to develop a supplier scorecard using the following scale: 3 = best, 2 = second best, 1 = worst. As you first look over the information that has been provided, you will note that the values for the Quality Capability Index (C_pk) for the current and alternative suppliers are listed as TBD* (to be determined).

Using the Quality Performance Information that has been provided, calculate the values of C_pkfor each of the current and alternative suppliers. Please show your work. Based on these values, which supplier would rate as best? Second best? Worst?

Using the ratings from 1-3 for each of the supplier characteristics and also the weight to be applied to each supplier characteristic, which supplier would you recommend be used? Be sure to show your completed supplier scorecard and your calculations.

What other factors do you feel might be helpful in making your decision?

Inventory Management Information The initial inventory for all sock styles combined at the beginning of FY2021 is 2,250 units. You also have information on current costs, which includes: - Order cost to Throx for an order placed with its current supplier, $/ order =S=$300 - Holding cost per set per year =H=$2.25 - The company currently pays (P) $8.00 for each set of socks The company uses a continuous review replenishment policy and has IT systems in place that allow constant monitoring of key information. Last year, the company used a ROP under this policy of 2,000 units for all sock styles and an order quantity (Q) of 5,000 units for all sock styles. Potential Alternatives to Current Supply Chain Management The company has asked you to evaluate a number of alternatives to their current SCM practices, including at a minimum their choice of supplier, transportation modes, order quantities and safety stock, and warehouse capacity and location. Supplier Information The table below provides information relating to important characteristics of the current supplier. In addition, the table includes the same types of information for two potential alternative suppliers in China ( A and B ) that have been contacted by Throx. The last column indicates the weights to be considered for each supplier characteristic. * TBD = to be determined (calculated) by students