A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?
Implementing a supplier certification program involves setting quality standards and certifying suppliers that meet these standards consistently. This proactive approach ensures that suppliers are capable of delivering quality products, reducing the occurrence of quality issues that disrupt production. Tightening quality tolerances and implementing inspection at the receiving dock are reactive measures that address issues after they occur, while charging back rework costs may strain supplier relationships. A supplier certification program promotes long-term quality improvement and fosters a collaborative relationship between the company and its suppliers. Reference:
Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2019). Operations Management: Processes and Supply Chains. Pearson.
Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management. Pearson.
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