case the Purchasing and Supply Management

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SCM381 Case 2-1- Spartan Heat Exchangers Fall 2016

Answer the following questions. Please be thorough in your answers. Use COMPLETE SENTECES AND PARAGRAPHS where appropriate (everywhere with exception of tables).

1. Contrast the differences in Spartan’s shift in strategy and how the organization will need to change relative to the following categories:

	Make-to-Order	Make-to-Stock
How the company will compete for customers	·	·
Margins	·	·
Product Variety	·	·
Production Scheduling	·	·
Finished goods inventory	·	·
Labor / Employees	·	·
Mfg Process / Flexibility	·	·

What type of changes will Spartan need to change with respect to its supply strategy in the following areas

2. :

Supply Base (number, type, capability, etc):

Lead Time:

Type of Inventory:

Cost:

3. With the change from a make to order to a make to stock strategy how can Rick reduce customer lead times from 14 weeks down to 6 weeks?

4. Currently Spartan is achieving approximately 4 inventory turns per year. Assuming that sales remain the same, by how much will the company need to reduce its average inventory level to increase turns to 20 times per year.

5. Assuming sales remain the same, how much ($) should Rick expect to save in purchased components and raw materials as result of this strategy change?