The ABC Corporation has been engaged in the manufacture of electronic components for automobiles for the last five years. The company employees 350 employees and about 30 supervisors and managers. The increase in technology requires that employees be sent to cope with the increasing demand for updated new products consistent with the demand of local and foreign customers. The HR Manager suggested that three of the managers and eight supervisors be sent to the mother company in Japan for updates in technology on car electronics. The Vice President for Finance and the Operation Manager opposed the recommendation on the basis of cost-cutting and lack of personnel to handle the operations while they were asway for two months. They suggested that technicians from the mother company be invited instead to handle the training in the Philippines. The cost of training by the mother company would double the cost of training as they are paid higher allowances and salaries that will be charged to the local company. Question: 1. What are the underlying problems? 2. What are the objectives in solving the problem/s? 3. Give at least 3 alternative courses of action and its pros and cons

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 3.8A
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The ABC Corporation has been engaged in the manufacture of electronic components for automobiles for the last five years. The company employees 350 employees and about 30 supervisors and managers. The increase in technology requires that employees be sent to cope with the increasing demand for updated new products consistent with the demand of local and foreign customers. The HR Manager suggested that three of the managers and eight supervisors be sent to the mother company in Japan for updates in technology on car electronics. The Vice President for Finance and the Operation Manager opposed the recommendation on the basis of cost-cutting and lack of personnel to handle the operations while they were asway for two months. They suggested that technicians from the mother company be invited instead to handle the training in the Philippines. The cost of training by the mother company would double the cost of training as they are paid higher allowances and salaries that will be charged to the local company. Question: 1. What are the underlying problems? 2. What are the objectives in solving the problem/s? 3. Give at least 3 alternative courses of action and its pros and cons
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