GMS 401 Chapter Notes - Chapter 2: Material Requirements Planning, Outsourcing, Job Shop
11 Sep 2013
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Ability and performance of a company, compared to the company"s competitors. Order qualifiers : minimum standards of acceptability; allow product to be considered; however, these may not be sufficient to get a customer to purchase from the organization. Order winners : purchasing criteria that cause perception of being better than competition; allow product to be purchased. Businesses compete using operations (cost, quality, flexibility, timeliness) All other factors being equal, a customer will choose the lowest price. Firms that compete on price alone may settle for lower profit margins. Most firms focus on lowering their costs of delivering goods and/or services to their customers. How consistently they can produce the costumers quality expectations. The better the response, the greater the competitive advantage. This may be changes in demand or design. How quickly is a product or service delivered to the customer. Rate at which changes to product or process are made. Value = (quality + speed + flexibility) / cost.
