Scenario:You have been retained by a group of investors who plan to manufacture and market a line of power hand tools, including electric drills, saws, and sanders. The investors would like you to guide their decisions regarding how they should design and organize their supply chain and how they should approach the operations management aspects of the production facility, as well as operations issues related to the success of the entire supply chain that they should consider and attempt to influence in their role as a major and critical component of the supply chain. The investor group will own and operate the production facility and are willing to consider ownership of any other component of the supply chain that you recommend they own and manage.You are to prepare a business report that addresses the challenges of ensuring all business units in the supply chain have the right amount of the right product in the right place at the right time and at the right cost. The operation of the supply chain should achieve synergistic results that provide sustainable dominant competitive advantage. The business report should focus on the concerns that the investor group has expressed and include, but not be limited to, any additional concerns the investor group has not yet considered.
Task: Create a business report based on the above scenario in which you do the following: A. Recommend, with sufficient support, the adoption of one of the following strategies by the power tool company: a Keiretsu network, a virtual company, a vertical integration, or a different supply chain strategy.Discuss metrics that could be used to measure performance of the supply chain.C. Discuss three of the following issues that could complicate the development of an efficient, integrated supply chain: local optimization, incentives, large lots, and the bullwhip effect.
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