1.What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain smooth flow of material?
There are two components of the supply chain that have broken down in this instance, materials management and production. Materials management is responsible for correctly forecasting the needed supplies and materials and passing that information off to the supplier. Production is responsible for maintaining a good line of communication based of their demand, if they are in need of more material and supplies this needs to be up-channeled to management which in turn should make a decision based on the information at hand. In my opinion, based on the available information it seems that Avion Inc. should be looking for another supplier in order to supplement what Foster cannot cover.
2. What initially appears to be the problem? What really is the problem(s) in this case?
Initially it seems that the problem is Foster’s inability to keep their promise of2500 units per month, possibly because of employee issues. Upon further review it is apparent that Avion has a systemic supply chain issue based mostly on miscommunication, or no communication between departments and their suppliers causing a bullwhip effect throughout the supply chain. Foster promised2500 units per month, and Avion is ordering 4000 units per month which is outside of Foster’s capacity which is in-turn causing contractions in the supply cycle
3. How easy is it to switch suppliers? What could complicate a firm’s ability to switch to a new supplier?
Switching suppliers is tedious at the very least. Things that can complicate such as witch include everything from production capacity, order fulfillment capabilities, and technology all the way to personality conflicts. It is simply uncertain what sort of issues might arise in the case of switching a supplier, not to mention if an issue does arise you may find your company back at square one with nothing but lost capital to show for it.
4. What does it mean to get to the root cause of a problem?
Getting to the root cause of a problem most nearly means that the team or individual solving the problem takes into consideration all supporting evidence and determines what the issue truly is based on a big picture aspect. More simply put, start with the entire picture and zoom in until you have found the true problem.
5. What does it mean to be a good customer? Why does a buying firm want to be perceived by a supplier as a good customer? Provide specific examples of what a firm must do to be a good supply chain customer.
Being a good customer means plentiful and good business. A buying firm wants to maintain good supplier relationships because the reputation of their product is on the line. If your supplier is upset, you may find your firm on the back burner when it comes to order fulfillment and quality control. In the case of Avion and Foster specific example of a way to maintain good supplier relations is to communicate fully, it is unacceptable that Foster’s attempts at correspondence went unanswered. This entire issue could have been solving simply by having better communication between buyer and supplier.

6. Explain the role of performance measurement in managing supply chain activities.
Performance measurement provides a metric which can be used by management to fulfil a number of requirements such as shaping the firms future goals, it allows management to quantify successful strategies, and helps management understand and adapt the business process.
7. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?
Changes within the supply chain can disrupt the normal flow of goods and services because each change hasn’t been fully scrutinized. A firm can plan and speculate that a change with have a certain effect on the supply chain, but until those processes have been measured it is impossible to know the true cause and effect of any disruption.
8. Why might Avion want to reduce the lead times on its purchased materials and components?
If Avion reduced their lead times on purchased materials and components it could help them gain a competitive advantage on their competitors and well as allow them to eat up market share. The lower your lead time on an order translates to the product being in the hands of the customer that much faster. With a lower lead time your customers will be happier possibly even allowing you to charge a higher price for the product.
9. Why do firms single source contracts?
Single sourcing a contract is a strategy that many firms will use to gain a competitive advantage over their competition. When a contact is single source it forms an alliance of sorts which provides the opportunity for the two firms to manage costs and resources much more competitively.