Avion, Inc.

Case: Avion, Inc.

4. What does it mean to get to the root cause of a problem?

“Getting to the root cause of a problem” is a saying that people use. It means finding out the reasons that stem to the main problem or in other words, what are the causes of the problem. The cause of the problem in the case is underestimating the projected production with Foster Technologies.

5. What does it mean to be a good customer? Why does a buying firm want to be perceived by a supplier as a good customer? Provide specific examples of what a firm must do to be a good supply chain customer.

A good customer is one that has strong communication skills. They are ones who report any sort of problems immediately and work as a team to mitigate any risks. A buying firm wants to be perceived by a supplier as a good customer because it gives the buying firm a good reputation, which in turn helps build strong relationships. In order for a firm to be a good supply chain customer, it must be able to communicate, as well as, work as a team. Unlike Avion, Inc., firms should answer their phones or emails and effectively reply back to changes in productions or operations.

6. Explain the role of performance measurement in managing supply chain activities.

Performance measurements are used to measure outcomes and can be a useful guide when performing future activities. Performance measurements in supply chain activities are used to help identify good suppliers – which ones fulfill orders in full and on time. They also help keep track of any order discrepancies. Performance measurements are a good way for firms to keep their suppliers in check.

7. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?

Changes within a supply chain can disrupt the normal flow of goods and services since there is a “disruption” in the normal process. This can cause the delivery of good and services to be postponed. Changes can also lead to...