Assignment:
ASSIGNMENT GOAL: This case assignment is designed to illustrate the concept of supply chain risks associated with the evaluation of a "Build vs. Buy" scenario that a firm might encounter while analyzing a backward vertical integration decision. Almost all modern firms (including most companies I have worked for or assisted) utilize these items or some variation of them. Additionally, we will assess the interplay of the supply chain decision with other concepts developed in this course throughout the semester.
ASSIGNMENT INTRODUCTION: This case assignment is designed to help students evaluate the use of various supply chain concepts that help improve the broader strategic goals of a firm. The case explores the concept of risk and its implications within the firm and its supply chain. It also assists students by allowing them to illustrate and assess various frameworks discussed. The assignment will ask you to get behind the case discussion and evaluate the build/buy decision while considering the risk the firm may encounter within its proposal. By understanding "the risk" you will be in a better position to improve the outcome of the decision.
ASSIGNMENT QUESTIONS: Please answer the following questions in your written report:
Question 1. Utilizing the information in the readings throughout the course, why would you NOT support Bob McCarthy's recommendation to build a cartridge manufacturing plant within Bergerac's existing plant? Explain your rationale! Again you MUST NOT support Bob Murphy. No other approach is allowed!
Question 2. Please list what you think is the one most problematic item in his analysis. Explain in detail why that item is the most important and use a brief mathematical underpinning (if possible) to show how it might change McCarthy's financial results from Exhibit 4 of the case. For example, might it have an impact on Working Capital, some other inventory item, etc.? Again, this is just an example; you can utilize any item you wish.
Question 3. Based upon the frameworks given in your readings in Module 6, pick one and explain how the idea of risk might impact the decision to build the plant in house. In your actual answer refer to the article you are utilizing...please do not just say "see the citation page" or it is shown there. Make that reference part of your answer.