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GSC Ltd is a manufacturer of car parts. To accommodate growing demands of electric cars, the company is developing a new component which requires different type of steel. The project team estimates that the component will be ready for production in 1.5 years. Until then, they need to keep the production busy.
After checking the inventory records, the production team sees that the company has 3 months of stock. The lead time for each batch is two months. Which of the following should be a priority ac-tion of the company?
Suggested Answer: C
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Writing a specification and then procuring and using the product or service has a number of stages. The further on in the process you are, the less potential there is for cost reductions. Therefore, opportunities for cost reduction will be greatest in the two first stages: planning stage and pre-design stage.
LO 3, AC 3.1
33 comments · newest first
LA
Laquita
11 months ago
A call-off order might be the quickest way to keep production going.
WI
Wilburn
11 months ago
Surprised they only have 3 months of stock for such a big shift!
TE
Teri
12 months ago
Standardizing the spec could slow things down, not sure that's the best move.
JE
Jerrod
12 months ago
I think creating a new spec for the current supplier makes the most sense.
LA
Lawrence
1 year ago
Looks like they need to act fast with only 3 months of stock!
CH
Chau
1 year ago
I practiced a similar question where prioritizing existing relationships was key. I wonder if option D would help us maintain production while we wait for the new component.
BE
Bettina
1 year ago
I feel like creating a new specification for the current supplier could help us get the right materials faster. Option C seems like a possibility, but I'm not confident.
AL
Alberto
1 year ago
I'm not entirely sure, but I remember something about standardizing specifications being important for efficiency. Could option B be the right choice?
RE
Ressie
1 year ago
I think we should focus on the current supplier since we have a limited time before production starts. Maybe option D makes the most sense?
CH
Chau
1 year ago
I'm feeling pretty confident about this one. The lead time and current stock levels give me a good idea of the right priority action to recommend.
SO
Sophia
1 year ago
Hmm, I'm a bit confused by the different options. I'll need to think through the implications of each one to figure out which is the best priority action for the company.
GE
German
1 year ago
This seems like a straightforward inventory management question. I'll need to carefully consider the lead time and current stock levels to determine the best priority action.
AL
Albina
1 year ago
Okay, I think I've got this. The key is to ensure they don't run out of stock before the new component is ready. I'll go with the option that minimizes the risk of stock-outs.
DE
Deonna
1 year ago
Option D, for 'Don't worry, be happy!' The current supplier has you covered - just place a call-off order and let the good times roll. Hakuna matata, my friends.
BL
Blondell
1 year ago
Agreed, it's the most efficient way to manage our inventory and production schedule.
SA
Sanjuana
1 year ago
Sounds good, that way we can keep the production busy until the new component is ready.
GE
Gennie
1 year ago
Let's go with option D and place a call-off order to the current supplier.
JU
Julio
2 years ago
Wait, you're telling me they've only got 3 months of stock and a 2-month lead time? Yikes, better fire up the ol' DeLorean and go back in time to order more parts!
BE
Bernardo
1 year ago
C) Create new specification to current supplier
CL
Claudio
1 year ago
B) Standardise the specification
JE
Jeannine
2 years ago
A) Create new specification to new supplier
SH
Shenika
2 years ago
A new supplier, huh? Sounds like a recipe for disaster. Unless you've got a lot of time on your hands, I'd just stick with the current guys. Option C is the way to go.
AN
Anjelica
1 year ago
Standardizing the specification could also streamline the process and help with inventory management.
MA
Magnolia
1 year ago
I think making a call-off order to the current supplier would help maintain production until the new component is ready.
DO
Dorinda
1 year ago
Yeah, creating a new specification for the current supplier would be more efficient.
AD
Adela
1 year ago
I agree, sticking with the current supplier seems like the safest option.
DA
Dannette
2 years ago
I'm leaning towards B - standardizing the specification. That way, you can have some flexibility when the new component is ready to go into production. Less hassle than starting from scratch with a new supplier.
KA
Kati
1 year ago
Yeah, it would save time and resources compared to creating a new specification for a new supplier.
JE
Jettie
2 years ago
I agree, standardizing the specification would definitely make things easier in the long run.
TA
Talia
2 years ago
Option D seems like the obvious choice. Why create a new spec when you can just place a call-off order with the current supplier? Keeps things simple and gets the job done.
AI
Aileen
2 years ago
I agree with Tony, making a call-off order seems like the most efficient option given the lead time for each batch.
TO
Tony
2 years ago
I disagree, I believe we should make a call-off order to the current supplier to ensure we have enough stock.
ME
Mee
2 years ago
I think we should create a new specification for the new supplier.