Supply Chain

Select an item that has a high annual dollar volume. This can be a purchased part or material or a service.

I. Identify the function of the item.

1. Obtain answers to questions such as these:

a. Is the item necessary, does it add value, or can it be eliminated?

Answer: The produc is necessary for the continuos run of the business. Chicken mcdo or fried chicken is one of their main product that has a big sales and has a big contibution on the profit of the business.

b. Are there alternative sources for the item?

Answer: There are lors of companies selling chicken but the main supplier of our chicken is Magnolia. For our alternatives, Purefoods is our second choice.

c. Can the item be provided internally?

Answer: No, because the business dan only cook the ingredients and the item is abundant in the market.

d. What are the advantages of the present arrangement?

Answer: The company has the power than the supplier because there are lots of companies who can provide the item.

e. What are the disadvantages of the present arrangement?

Answer: The quality of service of the supplier is good but there are times that quality of the product is not good or enough.

f. Could another part, material, or service be used instead?

Answer: We don't have any alternative for the item but we can suggest product like chicken fillet.

g. Can specifications be made less stringent to save cost or time?

Answer: Yes, it is necessary to have a good breading on the chicken but we can reduce the waste and at the same time the quality is still good.

h. Can two or more parts be combined?

Answer: No, but we do have an alternative product and it is chicken fillet.

i. Can more (less) processing be done on the item to save on cost?

Answer: Nowadays, process of cooking chicken is already innovated to lessen the cost and at the same time to ease the cooking procedure.

j. Do suppliers /providers have suggestions for improvements?

Answer: She said that she's not in the position to...