Question: You have been working as an operations assistant at ABC Company, which assembles and sells coffee makers. Your target market is North America, and you

You have been working as an operations assistant at ABC

Company, which assembles and sells coffee makers. Your target market is North America, and you distribute your finished products in 15 models (8 colours for each model) through five large retailers in Canada and the U.S. You buy over 125 parts in different colours from 28 suppllers in Canada, China, U.S., India, and Vietnam. Because of having too many models and colours, you spend a lot of time on machinery setup and buying numerous parts in small quantities. Sometimes you run out of parts, so you import them by airplane. Furthermore, a couple of models have recently had technical issues due to the low quallty of a specific part that is purchased from a new supplier in China.

Finally, your price is a bit high, and your company has decided to gain a higher market share by using a cost leadership strategy.

The Chief Operations Officer (CCO) has asked you to prepare a presentation for the Board of Directors and propose some solutions for materials management activities to make your products and company more competitive. You should prepare a presentation that covers some Dos and don'ts of the Transportation of your materials management decisions. The strategies should align with your business strategy, which is cost leadership.

Please provide assumed detailed calculations covering all cost like inventory cost, transit cost, fraight charges and etc. in a tabular foam or either in excel. to support the answer. Additionally, Provide some more alternative suppliers from different places to save the cost of transportations.

Note: Provide accurate calcuation in tabular foam or excel and please dont provide do and dont for the following. Focus mainly on the assumptions of the calculations.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f