departments will need to start collecting data on current supplierspotential

Departments will need to start collecting data on

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departments) will need to start collecting data on current suppliers/potential new suppliers to determine if their lead times, quality, cost, etc., match with what Spartan needs to carry out flow operations. As far as how much material will be carried will be dependent upon demand, but it is likely that the inventory turnover will be higher with flow operations. 3. Yes, it is reasonable to expect inventory turnover to increase from four times to twenty times. We can assume that standardization of products will help consolidate inventory, and cutting down on the amount of suppliers will make just in time delivery much easier. In general, whether using a JIT delivery system or not, product standardization and holding less product will make production scheduling easier and improve raw material planning. This will significantly cut inventory costs and holding costs. If Spartan’s annual purchase spend is still $14M, an inventory cost of $700,000 will allow for the increase to 20 times inventory turnover. 4. Yes, Rick Coyne should commit to a 10 percent reduction in prices from suppliers. I think it is feasible because having smaller groups of suppliers responsible for higher value purchases will give Spartan more negotiation power to bring prices down. 5. Yes, I believe that it reasonable to cut lead times from 14 weeks to 6 weeks. Switching to assembly line operations will significantly cut lead times; design lead time and supply lead time can be cut out entirely, since there will be a stock of inventory on hand at all times for the standardized product. Manufacturing lead time can be significantly reduced or cut out entirely since Spartan can keep an inventory of finished products manufactured ahead of time ready for delivery. Theoretically, Spartan’s lead time could just consist of delivery lead time, which would easily cut down total lead time to 4 weeks. Items will move much faster as a flow operation since they move singularly— products in a job shop operation move as a batch, taking much more time.

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