Spin Master Toys had to launch its First Electronics Product, E-Charger. They had to choose a supplier from Wai Lung and Wah Shung. Spin Master considered many factors before taking this decision which is given in excel below. S. No. Factors Weights Wai Lung Wah Shing Rating Weighted Rating Weighted 1 Reputation 9% 2 0. 18 4 0. 36 2 Capacity 12% 4. 5 0. 54 2 0. 24 3 Quality Levels 15% 3. 5 0. 525 4. 5 0. 675 4 Capability in Engineering 11% 2 0. 22 4. 5 0. 495 5 Capability of the factories’ Chinese Suppliers 10%
3 0. 3 4. 5 0. 45 6 Speed to the market 20% 4 0. 8 2. 5 0. 5 7 Costs 8% 4. 5 0. 36 3. 5 0. 28 8 Tooling time needed 10% 2. 5 0. 25 2. 5 0. 25 9 Attention to the company 5% 4. 5 0. 225 3. 5 0. 175 Total 100% 3. 4 3. 425 Rating : 1 to 5 Wah Shing has higher rating then Wai Lung. So Spin Master will choose Wai Shing as his supplier. Working Note: Reputation: Wai Lung had prior experience of making electronic products so it will add more reputation to Wai Lung Manufacturing Co. Capacity: Wai Lung Manufacturing Co.
is running at capacity of 40% so it has 60% capacity to utilize and they will not begun many projects in the future whereas Wah Shing already running at 70 to 80% of capacity so will give maximum 25%(Average) capacity to E-chargers. Quality Level: Wai Lung Manufacturing Co. did not has any prior experience of making electronic product as compare to Wah Shang which had been one of the supplier for major companies. Capability in Engineering: As Wai Lung did not has any prior experience so their Capability in Engineering will be less than as compare to Wah Shang. Capability of the factories’ Chinese Suppliers:
The Research paper on The Bargaining Power of Supplier of Mcdonalds
McDonald's Supply Chain Challenges and its Potential impacts 14 Even stronger focus on freshness and quality 14 On-going product innovations 15 Strong customer demand fluctuations based on promotions 16 Order- and inventory management restaurant – DC – supplier - raw material supplier 18 Bull Whip effect 19 Change Management in a de- centralized structure 20 Methods for Solve Problems 20 Build the ...
Wah Shang had prior experience of electronics device so in the case Capability of the factories’ Chinese Suppliers they will definitely have upper hand as compare to Wai Lung. Speed to market: Wai Lung had much more capacity to utilize than Wah Shang so probability of reaching product to market is higher in the case of Wai Lung. Costs: In short run Wai Lung will be more cost effective marginally and as Spin Master Toys needs E-Charger in short run and upto March only . Attention to the company: Wai Lung Co. ‘s owner said he would provide personal attention . Therefore Wai Lung has more chances to provide more attention to the company
