“Ashmark Corporation

You are to review the attached Ivey Publishing Case Study No. W15357 “Ashmark Corporation: Dealing with a Supply Disruption” (attached as a separate file) as follows:
When Ashmark’s largest supplier Red Star Castings closes in bankruptcy, Ashmark must develop and implement a contingency plan and manage supply chain risk, as well as alignment of incentives within a firm (and its supply base) and organizational stress from the failure of a long-term supply relationship.
Based on your review and analysis of this case study, prepare a response to the following questions:

1. What are the key issues with Red Star, Ashmark, and their relationship that led to this situation? (Approximately 1 to 1½-pages)
2. What is the role of the OEM in this situation? (Approximately 1-page)
3. What were some of the actions taken by Ashmaark immediately after bankruptcy, and what should Ashmark do next? (Approximately ½ to 1-page)
4. Should a company like Ashmark always have more than one supply sources? (Approximately ½-page)
5. What were the warning signs that red Star was in trouble? (Approximately ½-page)

Sample Solution