Bus 23 W5


Case 7-1 The Power Line Poles. Please respond to the following:

  • Discuss the bidding procedure.
  • Discuss and explain whether you agree or disagree with the final decision in this case.
  • Determine to what degree you would insist on the utmost high quality, knowing that this pursuit impacts costs significantly. State your rationale..

QUestion 2 =(Comment)

If I were Yarrow, I would want clarification and explanation on the exceptions; and I would want to know the outcome of the discussion with the other bidders related to the engineering and fabrication capabilities.  Further I would want to know if those bidders were able to correct the concerns in order to bring their bids into 100% conformance of the specifications. In this circumstance I would think that the manufacturer of the pole would be responsible for the final specifications.  Considering the manufacturer is expected to know industry standards for manufacturing such a product, I would think that if the consulting firm wanted something that was not in compliance the manufacturer would bring it to their attention, that the specifications are not in compliance with regulations.


Question 3=

Quantity. Please respond to the following:

  • Being a small-business owner such as a custom framing store, a restaurant, a garage, or a specific small local business of your choice, apply the basic supply management principles to the acquisition of services.
  • Discuss the trade-offs of quantity, quality, and cost in a small business.
  • Planning systems such as MRP and CRP might be overkills for a small-business owner. Devise a simplified version of a MRP and/or CRP such as a supply planning chart or a supply planning template for a small local business. 

QUESTION 4 (Comment )

– The basic supply management principles I would apply to the acquisition of services for my restaurant would include a focus on maintaining a high quality standards while providing quick service.  As a restaurant manager, I would be sure to employ industry educated and dedicated staff to help deliver on my principle of high quality customer service, product and cleanliness. This in my opinion are the basic supply management principles for operating a successful restaurant.

– The trade offs of quantity, quality and costs in a restaurant business could include offering a small menu selection or a focused menu (i.e. small cafe’ specializing in  baked goods or customized sandwiches). Having a single focus on a limited specialty menu will allow for continued development and maintenance of the quality of the food being offered.  For example, if I owned a “French” bakery, my focus would be on serving high quality French inspired pastries.  Therefore, the focus would be on maintaining high quality ingredients.

– For my small French pastry business, I would analyze my sales data and based on the most favored items, I would determine the supply inventory necessary to keep on hand; while introducing one or two items gradually over time.  Keeping in my the any new items would not require  major changes in the inventory maintained for the menu favorites. 






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