Dynamic Aircraft Case Study

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Category: Business and Industry

Date Submitted: 08/01/2016 04:17 AM

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Question: DYNAMIC AIRCRAFT The Dynamic Aircraft Company was recently awarded a multibillion-dollar contract for a new high-performance aircraft. This project required the use of new materials in many areas of the aircraft. The aircraft incorporated a state-of-the-art concept known as fly-by-wire. Among the conventional materials no longer useful were many of the types of wire used in the electrical systems of aircraft. Fortunately, however, the electrical wire manufacturers had been brought in on the problem at an early date so that, before long, many of them could offer for sale a standard stock electrical wire capable of withstanding unusually high temperatures. One leading electrical wire firm, Advanced Wire of Chattahoochee, Georgia, had developed a ceramic-coated wire. Other wire sources had tackled the problem in different ways. The representatives of all these companies were anxious to demonstrate their products to the engineering departments of the aircraft companies. The engineers at the Dynamic Aircraft Company, a large airframe manufacturer, were quite favorably impressed with Advanced Wire%u2019s ceramic-coated wire. They knew from previous experience that Advanced Wire had a reputation as a quality supplier of electrical wiring for the aircraft industry. Believing that Advanced%u2019s wire was the highest quality obtainable, the engineers specified it on the bill of materials. Bill Marshall bought wire and related items for the Dynamic Aircraft Company. An experienced supply manager, Mr. Marshall had a reputation for being conscientious and knowledgeable concerning the commodities that he purchased. When the requisition came to him to buy Advanced%u2019s ceramic-coated wire, he immediately wondered why Advanced Wire had been designated as a sole source. From his experience in buying wire, he knew Advanced to be a highcost producer. Moreover, he always attempted to follow the Dynamic Aircraft Company policy of dealing with more than one...