Logo image
Ashmark Corporation: Dealing with a Supply Disruption
Teaching case study

Ashmark Corporation: Dealing with a Supply Disruption

Brent Moritz and Christopher Craighead
Richard Ivey School of Business Case Collection
Ivey Management Services, a division of Richard Ivey School of Business
08/12/2015

View Online

Abstract

When Ashmark Corporations largest supplier, Red Star Castings (Red Star), was forced to declare bankruptcy, Ashmark had to develop and implement a contingency plan, while also appeasing its customers, who were growing increasingly impatient for their parts to arrive. Since Red Star closed, Ashmark had been late on 200 units of production due to missing components. Although this figure represented less than 1 per cent of the companys total monthly shipments, things were likely to get more difficult, especially with the loss of key employees due to the stressful situation. In addition, the new supplier was having trouble bringing the tooling online, there were delays in the qualification and testing process, and the modest amount of inventory built up in advance of the bankruptcy had diminished. As Ashmark looked to move forwards, it would need to develop a much better sense of how to manage supply chain risk. Originally Published: 08/17/2015
Bankruptcy Purchasing Risk management Suppliers Supply chain management Supply chains

Details

Metrics

1 Record Views
Logo image