Supply Chain
Assignment # 1
SCMT 200
NAME: DHALWANI1.DOC
Q1-1. Explain the following terms and provide a “real world example” of each term.
a). Second-tier supplier:
The first tier’s supplier’s supplier is the focal firm’s second tier supplier. Second tier suppliers are companies that sell and deliver goods and services to a first tier supplier. An automobile company could have a second tier supplier that would supply materials or parts to another company which would then supply materials or parts to another company which would then supply them to the manufacturer. A real world example of a second-tier supplier is “Wisconsin Aluminium” which supplies aluminium fuel filter housing to Mechanical Devices Company. Mechanical Devices uses the fuel filter housing on an engine component that they produce for Caterpillar Inc. Therefore, Wisconsin Aluminium is a second-tier supplier.
b). Second Tier customer:
The first tier’s customer’s customer is the focal firm’s second tier customer. Second tier customers buy from first tier customers (who now become a re-seller). The second tier customer may or may not be the end user of the product or service. A real world example of a second tier customer could be a retailer like Superstore where they would purchase the groceries from their first tier customers (wholesalers) and they would become the end user’s retailer.
c). A focal firm:
A focal firm is “the initiator of an International business transaction, they conceive, design, and produce the offerings, (goods and services) intended for consumption”. Note 1. A real world example of a focal firm would be VW. Basically, there are many firms that help in the making of the VW, a different firm may assemble the car, and another one may provide the means of distribution, but the focal firm is still VW, as it “their car”.
Q1-2). Is the use of a large number of suppliers a good idea? Why or why not? Support your answer with real business examples.
It all
SCMT 200
NAME: DHALWANI1.DOC
Q1-1. Explain the following terms and provide a “real world example” of each term.
a). Second-tier supplier:
The first tier’s supplier’s supplier is the focal firm’s second tier supplier. Second tier suppliers are companies that sell and deliver goods and services to a first tier supplier. An automobile company could have a second tier supplier that would supply materials or parts to another company which would then supply materials or parts to another company which would then supply them to the manufacturer. A real world example of a second-tier supplier is “Wisconsin Aluminium” which supplies aluminium fuel filter housing to Mechanical Devices Company. Mechanical Devices uses the fuel filter housing on an engine component that they produce for Caterpillar Inc. Therefore, Wisconsin Aluminium is a second-tier supplier.
b). Second Tier customer:
The first tier’s customer’s customer is the focal firm’s second tier customer. Second tier customers buy from first tier customers (who now become a re-seller). The second tier customer may or may not be the end user of the product or service. A real world example of a second tier customer could be a retailer like Superstore where they would purchase the groceries from their first tier customers (wholesalers) and they would become the end user’s retailer.
c). A focal firm:
A focal firm is “the initiator of an International business transaction, they conceive, design, and produce the offerings, (goods and services) intended for consumption”. Note 1. A real world example of a focal firm would be VW. Basically, there are many firms that help in the making of the VW, a different firm may assemble the car, and another one may provide the means of distribution, but the focal firm is still VW, as it “their car”.
Q1-2). Is the use of a large number of suppliers a good idea? Why or why not? Support your answer with real business examples.
It all