PURCHASING & SUPPLY MANAGEMENT Garland Chocolates Chapter 5 and Trojan Technologies Chapter 14 (Essay Sample)
1.Garland Chocolates Chapter 5
Address declining margins for the Edgeworth Toffee brand and choose between investing in new capital equipment or outsource to a contract manufacturer. Address the risks associated with your decision and analyze if your decision would change if one of the following occurs:
Service levels declines
Sales increases or decreases
2. Trojan Technologies Chapter 14
If you were in the position of Joyce Guo:
1. What would you recommend to Randy Haill concerning the low cost region sourcing project? What specific recommendations would you make in the areas of the sourcing process, schedule and timeline for implementation, budget and expected savings?
2. What would be the risks for Trojan associated with low cost region sourcing? What contingency plans would you make?
In your analysis, address issues related to the criteria to be used for selecting the parts, transition to new suppliers if that is part of your decision, and communication plan to the existing suppliers.
Purchasing & Supply Management Garland Chocolates Chapter 5 and Trojan Technologies Chapter 14
Course Name and Number
Assignment Due Date
Garland Chocolates Chapter 5
Currently, Garland Chocolates is experiencing problems in manufacturing and packing their brand of Edgeworth efficiently. This problem is leading to a decline in the company’s profit margin. The annual maintenance cost is $ 18,000 and is expected to increase by 12% in the next year (Johnson, 2014). This will cost the company at least 90,000 in five years, excluding 25% projected to increase (Johnson, 2014). The cost of replacing the two packaging lines for the Edgeworth Toffee brand is estimated to be $ 140,000, including installation, but it is expected to achieve the Business Performance Objective (BPO) efficiency of scrap rate targets (Johnson, 2014).
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