Kettering Industries - Term Paper

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Kettering Industries
In: Business and Management
Submitted By 09amorley
Words 1579
Pages 7

Case 12-3: Kettering Industries

Supply Management

Group 1 Immediate Issue:


Victoria Jackson, the supply manager of Kettering Industries Inc, must select the most suitable glass
supplier(s) for KII.
Basic Issues:
• Limited storage space
• Finding a supplier willing to stock inventory
• Increasing raw material inventory turns
• Flexibility with suppliers to adjust purchase order quantities
• Implementing the Vendor Certification Program
• Planning for growth of low energy glass windows sales
• Ranking each of the potential suppliers
• Selection of single or multiple sourcing supplier
• Negotiate a flexible long term supplier contract
• Deciding between manufacturer or distributor
• Selecting a supplier that can provide on time delivery of high quality glass at low cost
• Successfully expand from exclusively supplying Midwest to a world class manufacturer

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31/3/2020 Kettering Industries - Term Paper

Analysis:
As Victoria evaluates the four suppliers, she must be able to answer the question “Will the supplier be
able to meet Kettering Industry’s requirements satisfactorily, strategically, and operationally in both the
short and long term?” To properly answer that question she must use the three levels of need criteria
and assess the suppliers. The first level is the strategic level; in this level decisions are made based on
the goals of the organization. A decision tree could be an essential aide in helping her make the best
possible choice. Decisions trees are comprised of each possible option, analyzing the possibilities of
success or failure. Victoria needs to decide which of the four suppliers are capable of meeting the
amount of glass they need supplied. She will also need to take into account the risk associated with the
suppliers and eliminate the one with the highest risk. Some suppliers can expose Kettering Industries
Inc. to certain risks by making them too…...

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order quantities • Implementing the Vendor Certification Program • Planning for growth of low energy
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term?” To properly answer that question she must use the three levels of need criteria and assess the
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31/3/2020 Kettering Industries - Term Paper

inventory. Low energy glass accounted for 22% of the plant’s vinyl window production, increasing
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