Somerset Furniture Company's Global Supply Chain
Company Profile
Somerset Furniture Company (SFC) was founded in 1957 in Randolph County, Virginia.
Traditionally, SFC manufactured large, medium-priced, ornate residential home wood furniture.
SFC close down its entire manufacturing facility in the United States and outsource all of its manufacturing to suppliers in China in the year 2000.
Existing Supply Chain Model (China)
Statement of the Problem
What tactical and strategic changes would the Somerset Furniture Company employ to its supply chain model to address the supply chain variability, quality and warranty issues, and inventory in order to stay competitive?
Recommendation
It is suggested that Somerset Furniture Company should take Alternative Course of Action 1 in order to meet the objective of the case study.
Objective
To rectify or improve Somerset Furniture Company's supply chain and logistics practices by finding solutions to the following problems brought about by the organization's current supply chain model:
Supply Chain Variability
Quality and Warranty Issues
Inventory
Alternative Course of Action
ACA 1 - Modifying the existing supply chain model
Shipment of Raw Materials
Supply Chain Variability
Product Quality and Warranty Issues
Effective Inventory Management
ACA 2 - Near-shoring (Mexico is the new China)
Low-Cost Manufacturing
Proximity
The Quality and The Practice
Modified Supply Chain Model (China)
Specific guidance: you are expected to use the quantitative analysis methods within this module to arrive at conclusions and provide supported recommendations within your formal paper. You should select appropriate graphical presentation methodologies to present this material within the paper. You should include all computation materials as appendices to the completed report.