Supplier Network 2

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The client has asked to consolidate the supplier network. This will increase control but reduce flexibility.

D: Reduce the number of suppliers to 4 or 5
D': Maintain the number of suppliers to 30
B: have more control on the supplier network
C: be able to adjust the volume allocation in real time
A: have a better managed supplier network
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In order to have a better managed supplier network I must have more control on the supplier network and in order to have more control on the supplier network I must Reduce the number of suppliers to 4 or 5. But, in order to have a better managed supplier network I must also be able to adjust the volume allocation in real time and in order to be able to adjust the volume allocation in real time I must Maintain the number of suppliers to 30. I can't both Reduce the number of suppliers to 4 or 5 and Maintain the number of suppliers to 30.
RelationAssumption(s)Injection(s)
D-D'The number of people in one supplier location is controlled by me (max 30 in one place)Remove the cap on size in one location
B-Dlower number of suppliers is easier to controlAsk a few suppliers to come together in one location
C-D'large number of suppliers provide flexibility in moving volumeshave a few number of suppliers, but not as many as now
A-Bperformance of supplier network depends on this controlconsolidate locations, but keep number of suppliers same, and increase visibility of performance
A-Cthe volume fluctuates at interval levelreduce the variability in volume from client - have better forecast accuracies