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Supply Chain and Business Strategy (I3)

Deliverable Length: 12–15 PowerPoint slides with notes (150–200 words)
Put together a PowerPoint presentation with 12–15 slides that can be used for both internal purposes and when you meet with all of your vendors to kick off a vendor certification program. To earn full credit on the PowerPoint, you must use colored slides, clip art or charts, or photos on each slide to make them eye-appealing, along with 150–200 words of speaker notes for each slide, explaining the slide’s content. Slides must not be covered with commentary; that is what the speaker notes are for.
Assume the following information about a company:
The company is currently assessing a make versus buy decision. The company currently makes product line “A” using proprietary technology. Its variable cost/unit is $10, and its fixed cost allocation of overhead based on producing 10,000/yr is $20/unit, for a total standard cost of $30/unit. The company also makes 3 other completely different and separate product lines on different equipment. The company has a quote from an outside vendor for this product A, for $18/unit.
Given the data presented, what criteria would you use to evaluate the make versus buy decision that faces you? As a company’s managers create the optimum supply chain, there are many criteria that must be weighed, and in some cases, trade-offs are made. List at least 5 trade-off type decisions that the firm’s managers would have to make to establish the optimum supply chain. Include why it is a trade-off and the added information that you would need to actually make the best choice.
Should the manufacturing plant be located closer to its raw material vendors or its customer base? Why? Make up a checklist that a company’s vendor certification team should fill out when it visits a vendor prior to certifying them. What are the pros and cons of installing a vendor certification program?

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