supply chain management at regal marine case study

Supply Chain Management at Regal Marine. Business & Marketing

Case Study 2: Supply Chain Management at Regal Marine (pp. 467–468 and Pearson Video Library in the Introduction & Resources area) CASE STUDY 2 QUESTIONS What other techniques might Regal use to improve supply chain management? What kind of response might members of the supply chain expect from Regal because they’re partnering in the supply chain? Why is supply chain management important to Regal? The specifications for these case studies and the grading rubric can found in the Case Study section in the Introduction & Resources area. Don't forget to submit your assignment. RUBRIC GSCM206 Case Study GSCM206 Case Study Criteria Ratings Pts This criterion is linked to a Learning OutcomeKey elements All key elements of the assignment are covered in a substantive way: Introduction, Problem identification, Analysis (pros and cons), Solution choice and rationale, Conclusion 5.0 pts Full Marks 0.0 pts No Marks 5.0 pts This criterion is linked to a Learning OutcomeContent The content is comprehensive, accurate, and persuasive. The Case Study is directed toward the appropriate audience. 5.0 pts Full Marks 0.0 pts No Marks 5.0 pts This criterion is linked to a Learning OutcomeLinks theory The Case Study links theory and relevant material and examples from the course textbook, current experience, and industry practice, and it uses the vocabulary of the theory correctly. 5.0 pts Full Marks 0.0 pts No Marks 5.0 pts This criterion is linked to a Learning OutcomeResponses to key points Responses to questions address key points correctly. Responses should include the following whenever possible: What is the problem? What options are available? Why was a particular option selected? What conclusion can be drawn from the analysis? 10.0 pts Full Marks 0.0 pts No Marks 10.0 pts This criterion is linked to a Learning OutcomeConclusion The conclusion is logical, flows from the body of the paper, and reviews the major points. 5.0 pts Full Marks 0.0 pts No Marks 5.0 pts This criterion is linked to a Learning OutcomeParagraph transitions and paper tone Paragraph transitions are present and logical and maintain the flow throughout the paper. The tone is appropriate to the content and assignment. 2.0 pts Full Marks 0.0 pts No Marks 2.0 pts This criterion is linked to a Learning OutcomeSentence construction and transitions Sentences are complete, clear and concise. Sentences are well constructed with consistently strong, varied sentences. Sentence transitions are present and maintained the flow of thought. 2.0 pts Full Marks 0.0 pts No Marks 2.0 pts This criterion is linked to a Learning OutcomeFormat and design The paper, including the title page, follows the APA sixth edition format. The paper is laid out with effective use of headings, font styles, and white space. 2.0 pts Full Marks 0.0 pts No Marks 2.0 pts This criterion is linked to a Learning OutcomeRules of grammar Rules of grammar, usage, and punctuation are followed. 2.0 pts Full Marks 0.0 pts No Marks 2.0 pts This criterion is linked to a Learning OutcomeSpelling Minimum to no spelling errors found. 2.0 pts Full Marks 0.0 pts No Marks 2.0 pts Total Points: 40.0 Video Case Supply Chain Management at Regal Marine Like most other manufacturers, Regal Marine finds that it must spend a huge portion of its revenue on purchases. Regal has also found that the better its suppliers understand its end users, the better are both the supplier’s product and Regal’s final product. As one of the 10 largest U.S. power boat manufacturers, Regal is trying to differentiate its products from the vast number of boats supplied by 300 other companies. Thus, the firm works closely with suppliers to ensure innovation, quality, and timely delivery. Regal has done a number of things to drive down costs while driving up quality, responsiveness, and innovation. First, working on partnering relationships with suppliers ranging from providers of windshields to providers of instrument panel controls, Regal has brought timely innovation at reasonable cost to its product. Key vendors are so tightly linked with the company that they meet with designers to discuss material changes to be incorporated into new product designs. Second, the company has joined about 15 other boat manufacturers in a purchasing group, known as American Boat Builders Association, to work with suppliers on reducing the costs of large purchases. Third, Regal is working with a number of local vendors to supply hardware and fasteners directly to the assembly line on a just-in-time basis. In some of these cases, Regal has worked out an arrangement with the vendor so that title does not transfer until parts are used by Regal. In other cases, title transfers when items are delivered to the property. This practice drives down total inventory and the costs associated with large-lot delivery. Finally, Regal works with a personnel agency to outsource part of the recruiting and screening process for employees. In all these cases, Regal is demonstrating innovative approaches to supply chain management that help the firm and, ultimately, the end user. The Global Company Profile featuring Regal Marine (which opens Chapter 5) provides further background on Regal’s operations. Discussion Questions * * You may wish to view the video that accompanies this case before answering the questions. What other techniques might Regal use to improve supply chain management? What kind of response might members of the supply chain expect from Regal because of their “partnering” in the supply chain? Why is supply chain management important to Regal?Competition is no longer between companies but between supply chains. The key to success is to collaborate with members on both the supply side and the distribution side of the supply chain to make decisions that will benefit the whole channel. For many firms, the supply chain determines a substantial portion of product cost and quality, as well as opportunities for responsiveness and differentiation. The challenge of building a great supply chain is significant, but with good sourcing tactics, a thoughtful logistics plan, and active management of the distribution network, each link in the chain can be firmly forged. A number of metrics are available to help managers evaluate their supply chain performance and benchmark against the industry. Skillful supply chain management provides a great strategic opportunity for competitive advantage. Key Terms Supply chain management (p. 444) Make-or-buy decision (p. 447) Outsourcing (p. 447) Vertical integration (p. 448) Keiretsu (p. 448) Virtual companies (p. 449) Cross-sourcing (p. 450) Bullwhip effect (p. 452) Pull data (p. 452) Single-stage control of replenishment (p. 452) Vendor-managed inventory (VMI) (p. 452) Collaborative planning, forecasting, and replenishment (CPFR) (p. 453) Blanket order (p. 453) Postponement (p. 453) Drop shipping (p. 454) E-procurement (p. 456) Logistics management (p. 456) Channel assembly (p. 457) Reverse logistics (p. 460) Closed-loop supply chain (p. 461) Inventory turnover (p. 462) Supply Chain Operations Reference (SCOR) model (p. 463) Ethical Dilemma As a buyer for a discount retail chain, you find yourself caught in a maelstrom. Just last month, your chain began selling an economy-priced line of clothing endorsed by a famous movie star. To be price competitive, you have followed the rest of the industry and sourced the clothing from a low-wage region of Asia. Initial sales have been brisk; however, the movie star has recently called you screaming and crying because an investigative news outlet has reported that the clothes with her name on them are being made by children. Outraged, you fly to the outsourcing manufacturing facility only to find that conditions are not quite as clear-cut as the news had reported. You feel uncomfortable riding through the streets. Poverty is everywhere. Children are chasing foreigners and begging for money. When you enter the plant, you observe a very clean facility. The completely female workforce appears to be very industrious, but many of them do appear to be young. You confront the plant manager and explain your firm’s strict international sourcing policies. You demand to know why these girls aren’t in school. The manager provides the following response: “The truth is that some of these workers may be underage. We check IDs, but the use of falsified records is commonplace in this country. Plus, you don’t understand the alternatives. If you shut this plant down, you will literally take food off the table for these families. There are no other opportunities in this town at this time, and there’s no comprehensive welfare system in our country. As for the young women, school is not an option. In this town, only boys receive an education past the sixth grade. If you shut us down, these girls will be out on the street, begging, stealing, or prostituting themselves. Your business offers them a better existence. Please don’t take that away!” What do you say to your company, the movie star, the media, and the protestors picketing your stores? Is the best option to shut down and try someplace else? Discussion Questions Define supply chain management. What are the objectives of supply chain management? What is the objective of logistics management? How do we distinguish between the types of risk in the supply chain? What is vertical integration? Give examples of backward and forward integration. What are three basic approaches to negotiations? How does a traditional adversarial relationship with suppliers change when a firm makes a decision to move to a few suppliers? What is the difference between postponement and channel assembly? What is CPFR? What is the value of online auctions in e-commerce? Explain how FedEx uses the Internet to meet requirements for quick and accurate delivery. How does Walmart use drop shipping? What are blanket orders? How do they differ from invoiceless purchasing? What can purchasing do to implement just-in-time deliveries? What is e-procurement? How does Darden Restaurants, described in the Global Company Profile, find competitive advantage in its supply chain? What is SCOR, and what purpose does it serve? Solved Problems Virtual Office Hours help is available in MyOMLab. Solved Problem 11.1 Jack’s Pottery Outlet has total end-of-year assets of $5 million. The first-of-the-year inventory was $375,000, with a year-end inventory of $325,000. The annual cost of goods sold was $7 million. The owner, Eric Jack, wants to evaluate his supply chain performance by measuring his percent of assets in inventory, his inventory turnover, and his weeks of supply. We use Equations (11-1), (11-2), and (11-3) to provide these measures. Solution First, determine average inventory: ( $ 375 , 000 + $ 325 , 000 ) / 2 = $ 350 , 000 Then, use Equation (11-1) to determine percent invested in inventory: Percentage invested in inventory = ( Average inventory investment / Total assets ) × 100 = ( 350 , 000 / 5 , 000 , 000 ) × 100 = 7 % Third, determine inventory turnover, using Equation (11-2): Inventory turnover = Cost of goods sold / Average inventory investment = 7 , 000 , 000 / 350 , 000 = 20 Finally, to determine weeks of inventory, use Equation (11-3), adjusted to weeks: Weeks of inventory = Average inventory investment / Weekly cost of goods sold = 350 , 000 / ( 7 , 000 , 000 / 52 ) = 350 , 000 / 134 , 615 = 2.6 We conclude that Jack’s Pottery Outlet has 7% of its assets invested in inventory, that the inventory turnover is 20, and that weeks of supply is 2.6. Problems Problems 11.1–11.3 relate to The Supply Chain’s Strategic Importance 11.1 Choose a local establishment that is a member of a relatively large chain. From interviews with workers and information from the Internet, identify the elements of the supply chain. Determine whether the supply chain supports a low-cost, rapid response, or differentiation strategy (refer to Chapter 2). Are the supply chain characteristics significantly different from one product to another? 11.2 Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan. What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit? What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000? 11.3 Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the statement below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan. % Of Sales Sales $250,000 100% Cost of supply chain purchases 175,000 70% Other production costs 30,000 12% Fixed costs 30,000 12% Profit 15,000 6% What percentage improvement is needed in a supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit? What percentage improvement is needed in a sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000? (Hint: See Example 1.) Problem 11.4 relates to Six Sourcing Strategies 11.4 Using sources from the Internet, identify some of the problems faced by a company of your choosing as it moves toward, or operates as, a virtual organization. Does its operating as a virtual organization simply exacerbate old problems, or does it create new ones? Problems 11.5–11.8 relate to Measuring Supply Chain Performance 11.5 Baker Mfg. Inc. (see Table 11.9) wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. What is Baker’s inventory turnover? What is Baker’s percent of assets committed to inventory? How does Baker’s performance compare to the industry leaders? Table 11.9  For Problems 11.5 and 11.6 ARROW DISTRIBUTING CORP. Net revenue $16,500 Cost of sales $13,500 Inventory $ 1,000 Total assets $ 8,600 BAKER MFG. INC. Net revenue $27,500 Cost of sales $21,500 Inventory $ 1,250 Total assets $16,600 11.6 Arrow Distributing Corp. (see Table 11.9) likes to track inventory by using weeks of supply as well as by inventory turnover. What is its weeks of supply? What percent of Arrow’s assets are committed to inventory? What is Arrow’s inventory turnover? Is Arrow’s supply chain performance, as measured by these inventory metrics, better than that of Baker in Problem 11.5? 11.7 The grocery industry has an annual inventory turnover of about 14 times. Organic Grocers, Inc. had a cost of goods sold last year of $10.5 million; its average inventory was $1.0 million. What was Organic Grocers’ inventory turnover, and how does that performance compare with that of the industry? 11.8 Mattress Wholesalers, Inc., is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.5 million and inventory was $1.5 million. This year, cost of goods sold is $8.6 million and inventory investment is $1.6 million. What were the weeks of supply last year? What are the weeks of supply this year? Is Mattress Wholesalers making progress in its inventory-reduction effort? Tyler Olson/Fotolia

Provide details on what you need help with along with a budget and time limit. Questions are posted anonymously and can be made 100% private.

Studypool matches you to the best tutor to help you with your question. Our tutors are highly qualified and vetted.

Your matched tutor provides personalized help according to your question details. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session.

Supply Chain Management at Regal Marine Case Study Notes

User Generated

Business Finance

Description

Read the case and watch the case video carefully at first, and write-up case study notes, use your own words, it needs 1page and includes the information below(may need 3 paragraphs). Notes should cover the following three key points (at a minimum).

1. State the mission of the company discussed in the case

2. Identify a key operational challenge at the company

3. Make a high-level strategic recommendation to address that challenge

Watch the case video for more info:

https://mediaplayer.pearsoncmg.com/assets/_embed.t...

The case name is: Supply Chain Management at Regal Marine 

Unformatted Attachment Preview

Explanation & Answer

Hey there, I have completed the assignment. please find attached. its nice working with you😇 Running head: SUPPLY CHAIN MANAGEMENT AT REGAL MARINE Supply Chain Management at Regal Marine Institution Affiliation Date 1 SUPPLY CHAIN MANAGEMENT AT REGAL MARINE Regal Marine is a boat company in the United States of America that dedicates itself in the manufacture of quality boats. With the situation that this company finds itself, it is committed to differentiating its products from those of other boat making companies that it competes with. Like a ...

24/7 Study Help

Stuck on a study question? Our verified tutors can answer all questions, from basic  math  to advanced rocket science !

Similar Content

Related tags.

math business and finance Total Rewards Package information-gathering tools website design zoning plan project management standard deviation microeconomics excel business Information System

Salt To The Sea

by Ruta Sepetys

by Wiliam Shakespeare

Z for Zachariah

by Robert C. O’Brien

by Yuval Noah Harari

Good Kids Bad City

by Kyle Swenson

How to Win at the Sport of Business

by Mark Cuban

As I Lay Dying

by William Faulkner

One Flew Over the Cuckoos Nest

by Ken Kesey

by David Sedaris

working on a study question?

Studypool is powered by Microtutoring TM

Copyright © 2024. Studypool Inc.

Studypool is not sponsored or endorsed by any college or university.

Ongoing Conversations

Access over 35 million study documents through the notebank

Get on-demand Q&A study help from verified tutors

Read 1000s of rich book guides covering popular titles

Sign up with Google

Sign up with Facebook

Already have an account? Login

Login with Google

Login with Facebook

Don't have an account? Sign Up

• Engineering & Technology
• Industrial Engineering
• Supply Chain Management

SUPPLY CHAIN MANAGEMENT AT REGAL MARINE

Related documents

Add this document to collection(s)

You can add this document to your study collection(s)

Add this document to saved

You can add this document to your saved list

Suggest us how to improve StudyLib

(For complaints, use another form )

Input it if you want to receive answer

• [email protected]
• +1 (514) 312 4552

Case Study Supply chain management at Regal Marine

Supply chain management at Regal Marine

Monte Carlo harbor. Caption: Regal customers expect luxury and value.

Read the case study that follows.

View the video tour of Regal Marine that addresses its supply chain issues, then view the brief video clip containing the authors’ observations.

If you wish to have further background, reread the material on supply chain management in Chapter 11.

Chapter 11 deals with Supply Chain Management. As firms become increasingly focused and specialized, the supply chain performance grows in importance. Money spent with suppliers represents a huge portion of most firms’ revenues. This is the case at Regal Marine where suppliers are relied upon not only for quality components delivered on time, but for up-to-date technology and innovation. Regal expects members of its supply chain to be full partners. Suppliers are expected to join Regal in providing the customer not just quality and on time delivery, but performance and image. Luxury performance boats require no less. At the same time, Regal expects value.

Vendors meet with Regal’s designers to discuss changes to be incorporated into new product designs. Regal’s strategy of differentiating itself by building luxury performance boats means that suppliers must participate in this ongoing effort. You will notice on the right hand side of Table 11.1 in the text the characteristics expected of suppliers when the strategy is one of differentiation. These include:

Share market research; jointly develop products and options.

Select primarily for product development skills.

Use modular processes that lend themselves to mass customization.

Minimize inventory in the chain to avoid obsolescence.

Invest aggressively to reduce development lead time.

Use modular design to postpone product differentiation for as long as possible.

These characteristics are high on the list of issues between Regal and its suppliers and lead to the concept of ‘partnering’. ‘Partnering’ extends from jointly developing components, to modular designs at suppliers and at Regal, to rapid delivery and low inventories. These techniques allow innovative products to be rapidly and economically included in Regal’s boats.

Regal has also developed special arrangements with suppliers who maintain shop floor components for Regal. In some instances title transfers when the item is used, and in other cases title transfers when items are delivered to the property. Both approaches help Regal reduce total inventory and the related costs.

Additionally, Regal’s membership in the American Boat Builders Association allows it to participate in lower costs because of the combined purchase strength of the association.

Finally, Regal works with an Orlando personnel agency to outsource part of the recruiting and screening process for employees. In all of these cases, Regal is demonstrating creative approaches to supply chain management that help Regal and the end user.

• High School
• You don't have any recent items yet.
• You don't have any courses yet.
• You don't have any books yet.
• You don't have any Studylists yet.
• Information

Kha regal - Case study- Required

Operations management (man 3504), rasmussen university, recommended for you, students also viewed.

• Kha Apple Waiting - Required assignment
• Kha applequality - Required assignment
• Kha Janson Medical - Case study- Required
• Kha Apple Inventory - Required assignment
• Kha apple Final 04252017
• Kha apple - Required assignment

Related documents

• Deliverable 1 Leadership Development Plan
• Module 6 Assessment
• Module 4 Assessment
• Module 3 Assessment
• Module 1 Assessment
• Jwolz sourcingplan 060321

Preview text

Regal Marine Katelynn Ha Rasmussen College

Author Note This assignment is being submitted on May 22, 2016 for Katelynn Ha’s Operations Management course.

Regal Marine Supply chains are important to any retail corporation. Without a supply chain, companies would not have the products they need to conduct business, including the Regal Marine who manufactures boats. Although Regal Marine specializes in boats, they need to work with suppliers in order to distribute their products. Part of Regal’s supply chain management uses differentiation, cost leadership, and response as strategies; however the incorporation of additional techniques could improve the current supply chain as well. Having a strong supply chain relationship with suppliers will allow Regal’s supply chain to enhance by creating higher quality with the same goal intended. Another technique could include having criteria of selection for primary suppliers, which will also support low costs and increasing speed. Reducing stock will give Regal Marine an advantage by using “buffer” stocks to keep the response and to avoid product undesirable (Heizer, J., & Render, B. (n.)). Stakeholders of Regal might respond in one of two ways when becoming aware of partnership in the supply chain. The first response could be pleased with the partnership due to the stronger connections in supply chain and improving the overall quality of the final product due to Regal and suppliers having similar end goals, while adding a competitive advantage. However, a backlash may occur as well. Some stakeholders may be concerned with the partnership as it gives Regal Marine less power in decisions and ultimately giving Regal Marine fewer options. For example, Regal Marine may not have the option of bringing other suppliers in for different parts that may be needed due to details in a contract.

Resources Heizer, J., & Render, B. (n.). Operations management: Sustainability and supply chain management. M. (2011, October 03). Video 1 Regal Marine. Retrieved May 22, 2016, from youtube/watch?v=24zvqPuHHTs

• Multiple Choice

Course : Operations Management (MAN 3504)

University : rasmussen university.

• More from: Operations Management MAN 3504 Rasmussen University 31   Documents Go to course
• More from: KH KH Katelynn Ha 999+ impact 999+ Rasmussen University Discover more

Case Study Supply chain management at Regal Marine

Case Study Supply chain management at Regal Marine Monte Carlo harbor. Caption: Regal customers expect luxury and value. Read the case study that follows. View the video tour of Regal Marine that addresses its supply chain issues, then view the brief video clip containing the authors' observations. If you wish to have further background, reread the material on supply chain management in Chapter 11. Chapter 11 deals with Supply Chain Management. As firms become increasingly focused and specialized, the supply chain performance grows in importance. Money spent with suppliers represents a huge portion of most firms' revenues. This is the case at Regal Marine where suppliers are relied upon not only for quality components delivered on time, but for up-to-date technology and innovation. Regal expects members of its supply chain to be full partners. Suppliers are expected to join Regal in providing the customer not just quality and on time delivery, but performance and image. Luxury performance boats require no less. At the same time, Regal expects value. Vendors meet with Regal's designers to discuss changes to be incorporated into new product designs. Regal's strategy of differentiating itself by building luxury performance boats means that suppliers must participate in this ongoing effort. You will notice on the right hand side of Table 11.1 in the text the characteristics expected of suppliers when the strategy is one of differentiation. These include: Share market research; jointly develop products and options. Select primarily for product development skills. Use modular processes that lend themselves to mass customization. Minimize inventory in the chain to avoid obsolescence. Invest aggressively to reduce development lead time. Use modular design to postpone product differentiation for as long as possible. These characteristics are high on the list of issues between Regal and its suppliers and lead to the concept of 'partnering'. 'Partnering' extends from jointly developing components, to modular designs at suppliers and at Regal, to rapid delivery and low inventories. These techniques allow innovative products to be rapidly and economically included in Regal's boats. Regal has also developed special arrangements with suppliers who maintain shop floor components for Regal. In some instances title transfers when the item is used, and in other cases title transfers when items are delivered to the property. Both approaches help Regal reduce total inventory and the related costs. Additionally, Regal's membership in the American Boat Builders Association allows it to participate in lower costs because of the combined purchase strength of the association. Finally, Regal works with an Orlando personnel agency to outsource part of the recruiting and screening process for employees. In all of these cases, Regal is demonstrating creative approaches to supply chain management that help Regal and the end user. Case Study Discussion questions Answer the following questions. I would estimate that a paragraph on each of these would be sufficient. I am particularly interested in knowing why you think as you do. The more you can connect those to your answer, the better your assignment will be. 1. Can you practice the types of supply chain management without the ethical relationships in the supply chain? 2. What do you think is the MOST important reason why supply chain management is important to Regal and firms like it? Why? 3. Your text describes several opportunities possible by using an Integrated Supply Chain. As you answer, note briefly what action on Regal’s part triggered the opportunities that you listed.

Purchase the answer to view it

• Applied Sciences
• Architecture and Design
• Business & Finance
• Computer Science
• Engineering
• Environmental science
• Human Resource Management
• Information Systems
• Mathematics
• Political Science
• Social Science
• Liberty University
• New Hampshire University
• Strayer University
• University Of Phoenix
• Walden University
• Homework Answers