OPSCB/574 Competency 3 Assessment Part 2 (Already Graded A+)

Procurement Labor Inventory Transportation American Honda Motor Company (AHM) has a complex supply chain structure based on the organization strategy for sourcing and manufacturing Honda and Acura vehicles. The value chain consists of parts for the vehicle manufactured by Tier II suppliers which are used to place on the vehicle that is manufactured and built by AHM. The company has recently gone through changes with the manufacturers/suppliers of certain parts based on concerns that led to legal issues in the past. With these concerns, there has been some adjustments in the supply chain suppliers at the procurement level. The suppliers of the parts for the vehicles manufactured by AHM are considered the Tier 2 suppliers. Tier 2 suppliers are a valuable part of the supply chain since the Tier 2 suppliers are the source for the individual parts provided to make the vehicle. AHM is the Tier 1 supplier since AHM is the key component to assemble the product to its final form. In this instance, this refers to the vehicle itself. Since the issue with the Tier 2 suppliers there is a need to reconsider the supply chain planning. Supply chain planning is the process of developing goods to get them from the supplier to the customer and having a good balance of supply and demand. With the change in suppliers