Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
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Chapter 9, Problem 17DQ
Summary Introduction

To determine: The role of the Q adjustment factor in the SPI calculation.

Introduction: Supply management is the process of managing the suppliers and raw materials or resources that are essential for the organization’s operations.

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demand or its quality standards. The discovery of the faulty parts caused delays and other impacts on Apple's other suppliers as well POM Apple Deals with Supply Chain Strain and Faulty Parts as its customers. Apple reportedly threw out all of the defective Watches to avoid having to recall them. When Apple (www.apple.com) introduced the Apple Watch in April 2015, industry analysts had a hard time predicting how consum- ers would react. Their estimates ranged from 5 million to 40 million Watches sold in 2015. This huge range in a market forecast creates havoc in planning for a supply chain. In fact, industry experts call it supply chain strain. So, how did Apple's supply chain gear up for such a high de- gree of sales uncertainty? First, the firm allowed a certain number of Apple Watch preorders. Based on those preorders, Apple could estimate the potential market demand and alter production ac- Apple then handed over production of the taptic engine to another partner, Nidec Corporation…
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Purchasing and Supply Chain Management
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ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning