Issues

This section aims to look at some of the issues faced by Cameron Balloons in buying and controlling their stocks of raw materials. We will raise many questions and though we may not offer many answers it is a chance to see the constraints of operating in the real-world. How would you approach some of these, if you were running this business?

The stock control system was written in-house. When it needs upgrading would you try to buy a commercial package, or once again write it in-house? What are the advantages and disadvantages of each of these approaches?

One particular problem with suppliers for balloon parts is that if you change suppliers the new part may need re-certification. This means testing it for safety and getting it certified by the relevant authorities. How would you deal with this situation?

What would you do about suppliers who fail to deliver on time? (N.B. Bear in mind the previous question.)

Where there is only a single supplier of a particular component, what incentives could you offer to help ensure they don't get complacent about delivery time, quality and so on?

What sort of quality control system can you use to check on deliveries of raw materials?

What would be the most vital daily checks you would need to carry out as purchasing manager?