Reference no: EM133156336

IBM1003 - Problem 1

The Image Office Furniture Company, located in Windsor, Ontario Canada has hired your purchasing team to source all the parts and components for "stand up" desk.  Most modern office furniture companies have refined their designs to meet the demanding work habits and preferences of the young office worker. Image specializes in ergonomic workstations, used in offices where employees often spend many hours at a computer.  Ergonomics, "the process of designing or arranging workplaces, products and systems so that they fit the people who use them" (Dorhman Consulting, 2014) is very important to customers in need of practical and efficient office environment. 

The General Manager of Image Office Furniture has assigned your team of purchasing agents to source suppliers for all the parts and components of this office desk (see picture).  She has instructed you to use your purchasing skills and knowledge to first create a RFQ to buy the components that Image does not manufacture itself to produce a batch of 100 desks. Then your team will identify and explain your criteria for "qualifying" a source or supplier of these components for you to build this desk in Image's production facility.

Image Office Furniture's strength is metal fabrication and has the capability to make all the metal parts (legs and frame to support the desk top, spring mechanism to raise and lower the desk) in their facility. The company usually fabricates 200 desks (units) in a production run. The metal desk top frame is made from 2 pieces of 1 ½" X 2 ½" X .065 wall cut 24" long. The bottom metal leg (welded into an upside down "T") is made from 1 1/4" X 2 ¼" X .065 wall steel tube. The vertical piece is cut 16" long and the horizontal piece is cut 26" long. The desk top is 4' long X 2' in width X ¾" thick. Note: The metal components are made by Image, but they must buy the steel to make these parts.  The following list of components is the focus of your purchase requisition:

Component/Part	#	Specifications
Desk top	50	¾" X 4'X 8' Red Oak Shop Grade Plywood
Plastic casters	800	Hard floor, plastic stem casters, with brake. 8" Diameter, 2" width
Plastic (PVC) end caps - top frame	800	1 1/2" X 2 1/2" OD (outside dimension). 1 ¼" X 2 ¾" ID (inner dimension) to fit inside top frame tube
Table top and upper vertical support legs	1000'	1 ½" X 2 ½" X .065 wall welded rectangular steel tube (20' lengths)
Lower horizontal legs	1000'	1 1/4" X 2 ¼" X .065 wall welded rectangular steel tube (30' lengths)

Questions:

1. To identify and explain what your team considers as a "qualified" source.  In other words, what criteria are you using to qualify your sources as suppliers that will meet your requirements? 

2. Make any recommendations as to how this purchase can be a more "effective buy".