MGM101H5 Lecture 10: Operations and Supply Chain Management
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MGM101H5 Full Course Notes
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Based on the readings, what are the conditions that led to this problem: there is a shortage of egyptian cotton and as a result driven up the price of egyptian, therefore, companies are having a hard tie to look for egyptian cotton and they are, promoted it as egyptian cotton, didn"t come out and say it was partly egyptian cotton cotton buying it at a high price and thus put themselves at risk, reduced their cost blending for fake/cheaper materials, the role of external certification: the validity of that certification was not very strong. What steps could they take to protect themselves and their employees: make the product yourselves (outsourcing, do some random testing to have quality control in place (what you get is what you think your buying, doing spot checks and sit down with employees, conduct audits, think about what suppliers you"re gonna buy from, educate yourself about the business and understand the industry you"re buying from.
