Essay about Eastern Waves, Inc.

1418 Words Mar 3rd, 2013 6 Pages
Case 10: Eastern Waves Inc.
George Stipe
Arkansas State University

Author Note This assignment is being submitted on February 1st, 2013, for Dr. Mello’s 4123 MKTG: Organizational Purchasing course.

Case 10: Eastern Waves Inc.
Introduction
(Benton 2010) Mr. Patton, the situation in Malaysia is not looking good. “In 1997 Malaysia was hit by the Asian financial crisis.” One of the most effected areas was the manufacturing sector. “In order to rescue some of the largest state-owned companies, the government has imposed several strict trade barriers on certain goods. Included under law in these protected goods are the steel billets, the raw material for use in the downstream steel industry.” The government has also put into effect
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(Benton 2010) Code C should critically analyze future global sourcing by adhering to the following purchasing strategy framework table:

Decision Areas | Decisions | Alternatives | | | | Supply management | Number | Single or multiple source, | | location | close or geographically | | | dispersed | | Size | Small versus large | | Managerial expertise | High or low | | Financial health | High or low | | Amount of purchase | Restricted to a certain percentage | | | of supplier's output or no | | | constraint | | Engineering | Development versus | | | experienced supplier | | Length of contract | Long term (annual or larger) or | | | short term | | Relationship | Strategic versus commodity | | | focused | | Extent of | Manual versus information | | computerization | systems | | Communication | Share production plan versus | | (integration) | nonsharing | | Value engineering | Active program versus no | | | program | Buying | Criteria | Cost, quality, delivery or lead | | | time, perceived delivery reliability | | | or reputation | | Purchasing scale | Economies of scale (cost/volume) | | | or economies of scope (joint | | | replenishment) | | Ordering policy | Integrated with supplier information | | | system or nonintegration | Supplier development | New product or | Develop supplier or look for new | | substitute

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