The central purchasing group for Ortega Foods buys cornmeal for the company's four plants that produce taco
Question:
The purchasing group currently supplies Cincinnati and Baltimore plants from Dayton. Dallas is served by Kansas City, and Los Angeles is served by Minneapolis.
(a) What sourcing plan would be best for Ortega, and how much would it save?
(b) Are there any actions that the purchasing group might pursue to reduce costs further?
Table 10-6 Supply and Demand Data for Ortega Food Problem
c. Is Ortega contracting with too many suppliers? Why or why not?
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Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
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