DEVRY GSCM 520 WEEK 1 CASE STUDY
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Problems
identified in the case
The main
problem identified in the case is related to outsourcing of products. The
concern for quality of products from manufacturing units in China and the
threat of compromising with their delivery of speed are the two main problem
identified in the case. The rising demands of their products have led to their
decision to outsource bags from China due to lower manufacturing costs. But
then there are concerns from a group of people that this decision would make
them compromise with the very reasons they have gained popularity. First is the
quality and second the speed of delivering products within two day.
Question 1:
Consider the two categories of products that Timbuk2 makes and sells. For the
custom messenger bag, what are the key competitive dimensions that are driving
sales? Are their competitive priorities different for the new laptop bags
sourced in China?
2、Compare the
assembly line in China to that in San Francisco along the following dimensions(1)volume or
rate of production,(2) required skill of the workers,(3) level of automation,
and (4) amount of raw materials and finished goods inventory.
Question 3:
Draw two diagrams, one depicting the supply chain for those products sourced in
China and the other depicting the bags produced in San Francisco. Show all the
major steps, including raw material, manufacturing, finished goods,
distribution inventory and transportation. Other than manufacturing cost, what
other costs should Timbuk2 consider when making the sourcing decision?
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