Consider the supply for breakfast cereal. There are farmers, who grow and make the raw materials. There is a manufacture that has an operations division for manufacturing the cereal, a marketing division and a logistics division. there is a distribution arm of the grocery chain that works with the distribution from a DC. There is an individual grocery store tht sells the cereal.
Discuss the competing and conflicting objectives of these parties.
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First, the farmer wants to get the maximum price for what he grows and processes. The manufacturer wants to pay her the lowest possible price. Second, the farmer wants to supply the raw materials of a mediocre quality, whereas the manufacturers always want the best quality raw material from the farmer. Third, the farmer wants to supply the raw material when he grows it, but the manufacturer wants raw material according to his production plan (2). The farmer has the goal of maximizing his revenues. The manufacturer has the objective of minimizing her costs.
The operations division wants a fixed production plan but the ...
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