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Supply Chain Management"

20

5000

A sales bill of materials defines products as they are ordered. It can also define products as they are built and this bill is called manufacturing bill of materials. In this case, we will emphasis on manufacturing bill of materials to know how the sandwiches in Delight Sandwich Company are manufactured. This is a company that is based in Tees Valley Area. Its main objective is to provide quality sandwich to its customers in the area and abroad. This objective has made it come up with a more sophisticated sandwich product called chicken deluxe sandwich. This will lead to improved company feat in terms of competitive gain, higher market share, quality and cost advantages and higher revenue with the new product. Bill of materials Bill of materials structure for the new chicken deluxe sandwich NUMBER PART NAME REQ’D MATERIAL DRAWING NUMBER 1 OUTER LAYER 1 WHEAT FLOUR (BREAD) DSC 0001 2 THIN UPPER LAYER 1 BUTTER DSC 0002 3 UPPER SANDWICH 4 COS LETTUCE DSC 0003 4 UPPER MIDDLE SANDWICH 2 CUCUMBER DSC 0004 5 MIDDLE SANDWICH 3 TOMATOES DSC 0005 6 LOWER MIDDLE SANDWICH 10 FRESH CHICKEN DSC 0006 7 SAND WICH COVER 1 MAYONNAISE DSC 0007 8 THIN LOWER LAYER 1 BUTTER DSC 0002 9 OUTER LAYER 1 WHEAT FLOUR (BREAD) DSC 0001 Drivers and implications of product innovation Product innovation is the leading mode of innovation and aims first and foremost at improving product performance. It leads to improved company feat in terms of competitive gain, higher market share, quality and cost advantages and higher revenue with new products. Succeeding product innovations eventually yield a dominant design where the most favorable product configuration is reached (Curtis , 2010 and Hal, 1987). Innovation process is at first minor in significance and production in early stages is characterized by high labor skills level, small scale and flexibility. As product design continues stabilizing, increasingly automated production methods are used and innovation process to lower costs takes over as dominant innovation mode (Mishra and Mishra, 2006). The presence of a variety of threshold levels for net utility and functionality implies that consumers will differ in the level at which a product technology at a given condition is capable of gratifying their requirements. This will result to variation in amount, and type, of development required before the products become relevant to the consumers. The model of diffusion of innovation focuses on the diffusion of fixed innovation as well as demand heterogeneity in elucidating the differences in decision and adoption rates. They fail to consider the interaction between consumers’ adoption to decisions and changes in the innovation that led to further development (Bob, 2011). In mature markets, price and functionality are often confounded as consumers with low or high functionality generally buy less or more expensive products. Nevertheless, price and functionality need to be coupled. With emerging technologies, potential consumers with high willingness to pay for products with the same low functionality requirements, play important roles both the adoption of an innovation and the development. In the context of emerging technologies, companies and firms do not have the alternative of positioning their products in the quality price space at will, but to a certain extent need to slot in development to affect uniqueness. While consumers have a minimum threshold for satisfactory performance,