Sourcing Decisions in a Supply Chain Discussion

Sourcing Decisions in a Supply Chain Discussion
1. What are some ways that a firm such as Wal-Mart benefits
from good sourcing decisions?
2. What factors led Wal-Mart to own its trucks although many
retailers outsource all their transportation?
3. How can a supplier with a lower price end up costing the
buyer more than a supplier with a higher price?
4. Explain why, for the same inventory level, a revenue-sharing
contract results in a lower sales effort from the retailer than if
the retailer has paid for the product and is responsible for all
remaining inventory.
5. For a manufacturer that sells to many retailers, why does a
quantity flexibility contract result in less information distortion
than a buyback contract?
6. Most firms offer their sales force monetary incentives based
on exceeding a specified target. What are some pros and cons
of this approach? How would you modify these contracts to
rectify some of the problems?
7. An auto manufacturer sources both office supplies and subsystems such as seats. What, if any, difference in sourcing
strategy would you recommend for the two types of products?
8. Why do you think assembly in the consumer electronics
industry is performed by third parties, whereas assembly in
the auto industry is almost never outsourced?
9. For products such as home appliances, toys, garments, and
consumer electronics, what factors would influence selecting
an onshore, near-shore, or offshore supplier?
Sourcing Decisions in a Supply Chain Discussion
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