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U.S. based manufacturers often produce domestically, outsource production needs, or a combination of both to accommodate fluctuating customer product demands. While doing this, it is very important to remember that whether domestically or internationally outsourcing, ethical business practices must be followed not just for customer loyalty, but for product integrity.
Select a United States based company that does business globally (or contact your instructor for a recommended organization to research).
Research the company’s MRP and raw material needs for their products.
Include where the company outsources as well as any legal or regulatory requirements associated with doing business in that country.
Identify the ethical standards in terms of what is acceptable and what is not acceptable when choosing a vendor to partner with, and when choosing materials used to produce a product that is acceptable to the US based manufacturer that all partners will have to adhere to.
Describe the MPS process used.
Assess capacity requirements according to MPS and MRP schedules.
Describe the potential impact of using “grey” parts (for example non OEM or lower quality parts) in MRP processes and the ethical implications involved. Be sure to address legal and ethical standards related to product development, production, and outsourcing.
Write a 700- to 1,050-word summary of your findings.