Michael is a sales representative for Brembo, a performance automotive brake manufacturing company. He wants to sell his brake calipers to BMW for their Alpina B7 sedans. This unit of BMW follows lean manufacturing principles. Michael is unsure how they will react to his method of selling all he possibly can to them and forcing them to take delivery in large quantities to increase his sales bonuses.
A. Briefly discuss why vendor relationships might be important to this unit of BMW.
B. Would this unit of BMW prefer an adversarial or long term relationship with their vendors?
C. Why might Michael be hesitant about “Just In Time” purchasing?