Avion Case

Based on the case Avion, Inc. on pages 802 – 803 of the text, answer the following questions from the end of the case:

1. a. Foster- Production

Avion Inc- Materials Management, Production, Customer Service

Avion Inc: Materials Management, Production, customer service. Fosters Inc: Production

1. b. Foster- Production: It is Foster’s responsibility to produce the material that Avion Inc. needs to produce its goods

Customer Service: It is their responsibility to contact Avion Inc. if there are any changes or if there are problems with the order. If they cannot meet the materials demand in the time that is stated in the contract then they should contact Avion.

Avion Inc.- Material Management: Avion should be sure that they have enough material to meet their production needs. If there is a problem they should contact the supplier to fix it or resolve to look for a new supplier if the old supplier is not working out.

Customer Service: It is Avion’s responsibility to contact their supplier if there are problems with their order. They should have contacted Foster when they first noticed that the shipments had problems. This would help to resolve the issues with their supplier before the issues started to impact the final product and the customer.

2. The initial problem appeared to be Foster’s inability to meet Avion’s materials supply as stated in their contract. In the beginning it looked like Foster lead Avion to believe that they could produce more material than they actually could. It also looked like Foster was trying to put the blame on Avion for their poor production even though they couldn’t meet the required demand. The real problem places the blame on Avion for under representing their actual needs during the initial supplier review. They stated that they would need 2,500 units a month but instead the volumes are now over 4,000 units a month. Also, during the initial supplier review, Avion stated that their production group would want...