Business

Q1: Diagram the DEP/GARD supply chain (done – see above) What stages are adding value? What stages are not?

Q	Full Credit 35/40 points	75% Credit 30 points	50% Credit 20 points	25% Credit 10 points
1.	Please review the description of DEP’s supply chain diagram above and the description on pages 433-434. A) Indicate 4 stages of this supply chain that ADD VALUE, including 1 sentence (per stage) that explains why you feel value is added . B) Indicate 4 stages of this supply chain that DO NOT ADD VALUE, including 1 sentence (per stage) that explains why you feel value is not added. PLEASE USE BULLET-POINTS WHEN LISTING YOUR ADD VALUES AND NON-ADD VALUES!	A) Indicate 3 stages of this supply chain that ADD VALUE, including 1 sentence(per stage) that explains why you feel value is added. B) Indicate 3 stages of this supply chain that DO NOT ADD VALUE, including 1 sentence(per stage) that explains why you feel value is not added. PLEASE USE BULLET-POINTS WHEN LISTING YOUR ADD VALUES AND NON-ADD VALUES!	A) Indicate 2 stages of this supply chain that ADD VALUE, including 1 sentence (per stage) that explains why you feel value is added. B) Indicate 2 stages of this supply chain that DO NOT ADD VALUE, including 1 sentence (per stage) that explains why you feel value is not added. PLEASE USE BULLET-POINTS WHEN LISTING YOUR ADD VALUES AND NON-ADD VALUES!	A) Indicate 1 stage of this supply chain that ADD VALUE, including 1 sentence(per stage) that explains why you feel value is added. B) Indicate 1 stage of this supply chain that DO NOT ADD VALUE, including 1 sentence (per stage) that explains why you feel value is not added. PLEASE USE BULLET-POINTS WHEN LISTING YOUR ADD VALUES AND NON-ADD VALUES!

DO NOT DO QUESTION 2!!!!!

Q3: Can the performance cycle be improved through the use of the 25 percent and 15 percent companies? What trade-offs must be made to use these suppliers?

Q	Full Credit 40 points	75% Credit 30 points	50% Credit 20 points	25% Credit 10 points
3.	A) Identify the Company# and Chemical Compound pair that do NOT MEET the expected performance days criteria laid out on p. 433 (Hint: include ALL suppliers – there are 6 that exceed the allowed days) B) Compare and identify four 15% or 25% companies and the respective chemical compounds they supply that might take some of the 60% company’s share of the compound (ex. Compound A companies 2 or 3 provide better service levels than company 1). C)Explain in 2-3 sentences what the trade-offs might be if you give the 15% and 25% companies more business (hint: why are they only 15 – 25% in the first place?) PLEASE USE BULLET-POINTS WHEN IDENTIFYING THE COMPANIES!	A) Same as “Full Credit”, but only identify four Company# and Chemical Compound pairs. B) Same as “Full Credit”, but only compare and identify three 15% or 25% companies and the compounds they provide. C) Same as “Full Credit” PLEASE USE BULLET-POINTS WHEN IDENTIFYING THE COMPANIES!	A) Same as “Full Credit”, but only identify three Company# and Chemical Compound pairs. B) Same as “Full Credit”, but only compare and identify two 15% or 25% companies and the compounds they provide. C) Same as “Full Credit” PLEASE USE BULLET-POINTS WHEN IDENTIFYING THE COMPANIES!	A) Same as “Full Credit”, but only identify two Company# and Chemical Compound pairs. B) Same as “Full Credit”, but only compare and identify one 15% or 25% companies and the compounds they provide. C) Same as “Full Credit” PLEASE USE BULLET-POINTS WHEN IDENTIFYING THE COMPANIES!

DO NOT DO QUESTION 4!!!!!

Q5: What will likely be “qualifying criteria” and “order winning criteria”? Will these change over time? What does this suggest about supply chain management?

Q	Full Credit 40 points	75% Credit 30 points	50% Credit 20 points	25% Credit 10 points
5.	A) List THREE “qualifying” criteria that GARD expects from its suppliers. B) List THREE “order winning” criteria that GARD expects from its suppliers. (Hint: Chapter 4 provides both basic and enhanced criteria upon which to evaluate potential and current suppliers) C) In 4-6 sentences, explain why you feel criteria may change over time, and why suppliers must keep up with improvements in supply chain management. PLEASE USE BULLET-POINTS WHEN LISTING CRITERIA!	A) List TWO “qualifying” criteria that GARD expects from its suppliers. B) List TWO “order winning” criteria that GARD expects from its suppliers. (Hint: Chapter 4 provides both basic and enhanced criteria upon which to evaluate potential and current suppliers) C) In 4-6 sentences, explain why you feel criteria may change over time, and why suppliers must keep up with improvements in supply chain management. PLEASE USE BULLET-POINTS WHEN LISTING CRITERIA!	A) List ONE “qualifying” criterion that GARD expects from its suppliers. B) List ONE “order winning” criterion that GARD expects from its suppliers. (Hint: Chapter 4 provides both basic and enhanced criteria upon which to evaluate potential and current suppliers) C) In 4-6 sentences, explain why you feel criteria may change over time, and why suppliers must keep up with improvements in supply chain management. PLEASE USE BULLET-POINTS WHEN LISTING CRITERIA!	N/A

Discuss the DEP/GARD Supply chain. What stages are adding value? What stages are not?

The DEP/GARD supply chain is as follows;

· DEP receives a given amount of the materials they need to produce polymers

· Compounds needed to manufacture polymers are supplied in a consistent seven day period by DEP

· The manufacturing department is in an interdependent relationship with the procurement, marketing and sales departments. Orders are received via phone or fax, and recorded in an information system. Using this system, most customers receive their orders within a period of six to eight days.

· Once the products are manufactured, they are stored in a warehouse strategically located close to the manufacturers.

· At the warehouse the inventory is inspected and prepared for delivery. It takes about 3 to 6 for orders to leave the warehouse from the time they were received from the manufacturer.

· DEP fleet trucks deliver orders to customers within a 200 mile radius twice a week. Customers outside this radius receive their deliveries via a common carrier within a period of not more than six days of delivery time.

Stages that add value;

· The seven-day supply period maintained by DEP and the company’s flexibility towards the type and quantity of polymers they make.

· The information system is quite useful in connecting all departments to avoid misinterpretations and confusion as all department receive the same information via the information system.

· The verification process taking place in the warehouse to match orders to clients in terms of quantity and type.

· (Consider also the value-added with manufacturing and DEP packaging)

Stages that do not add value;

· The time and energy used to move finished product from one warehouse to another for verification. This is a waste of resources and increase the period it takes to deliver products.

· Orders and paperwork should be kept in a common place to save on time wasted unsorting orders.

· (Consider also materials inventory and receiving)

Using the primary DEP suppliers (60 percent of business), what is the minimum performance cycle for the supply chain diagrammed above? What is the maximum?

Based on the size and scope of the delivery challenges faced, the minimum performance cycle for the supply chain using primary DEP suppliers (60 percent of the business) is eight days while the maximum is twenty-five days.

Can the performance cycle be improved through the use of the twenty five percent and fifteen percent suppliers? What trade-offs must be made to use these suppliers?

Yes, performance cycles can be improved through the use of 25 percent and 15 percent suppliers. However, the new suppliers would need to be dependable and strict in adherence to time because small deviations very costly. However, in the long run a higher cost for consistency would be worth it as the returns would increase.

If you were Tom Lippert, what changes would you make in DEP's operation? Why? What problems do you foresee as you try to implement these changes?

First and foremost, I would minimize on the current wastage experienced in operation. I would then keep a close look on the industry I operate it to determine current trends and operations of competitors. As a supplier of product, it is paramount that I stay informed about my competition. These changes are necessary to ensure GARD operates at lower overhead costs and attract more business. When it comes to problems I foresee in this situation of change, I think the leadership of the company might be conflicted about these changes. Some would be opposed as these changes as they may appear to be outside GARD's normal activities and may represent a shift in the company’s role as industry leader. Their support however would be crucial. I would therefore develop, in writing, the company’s shortcomings in relation to the old system and the benefits of implementing the new structure.

Assuming you can make the changes, mentioned in question 4, how would you ‘sell Richard Binish on DEP's next bid?’ what will likely be ‘qualifying criteria’ and ‘order winning criteria?’ will these changes over time? What does this say about supply chain management?

If I could make the changes suggested, I would sell the idea on Richard Binish by pointing out to him that DEP will have properly organized its production and shipping activities to ensure reliable production and efficient supply of product which will attract more clients and increase sales while at the same time offer competitive rates in the market because of cost cutting.

DEP

Receiving

Materials

Inventory

(1 Week)

Manufacturing

Remote

Warehouse

GARD

DEP Truck

E

F

60% 60%

Company 5

C D

C D

A B

E F

A B C

D

A B E F

25% 25%

60% 60%

15%15%25%25%

25%25%15%15%

60%60%15%15%

Company 6

Company 4

Company 3

Company 2

Company 1