Supply Chain Management A Global Perspective 1st Edition Nada R. Sanders - Solutions

5. Describe three recent situations in which you were directly affected by poor product or service quality.
4. Find an example of a service organization and explain how Lean could be implemented in this environment.
3. Find an example of a company that has high respect for people. How does this affect their performance?
2. Identify the three elements of Lean and explain how they work together.
1. Describe the core beliefs of Lean and how they could be implemented in your own life.
12. Pure Grapes reviews inventory every week. Lead time L is seven days and demand rate is 100 units per day. You know the company’s standard deviation is 10 units per day and allows one stock-out per year. Develop the ordering policy for a fixed-time period inventory system assuming 52 weeks per
11. Ice Ginger reviews inventory every two weeks. As the inventory manager of the company, you know that its lead time is seven days and its demand rate is 40 units per day. Given variance is 25 units per day, you calculated the target inventory level to be 881 units. Now, how many stock-outs per
10. Apple Cakes reviews inventory every two weeks with lead time of seven days, demand rate 40 units per day and standard deviation five units per day. If the company tolerates no more than one stock-out per year, develop the ordering policy for a fixed-time period inventory system assuming 52
9. Lugini Watch’s annual demand is 100. It can produce at a rate of 10 watches per month with a $100 setup cost for the production run. Find the order quantity and I max assuming carrying cost is $100 per unit.
8. Linden Jet’s annual demand is 20. It can build at a rate of four jets per month. The setup cost for a production run of jets is $1,000. Find the order quantity and I max assuming carrying cost is $1,000 per year.
7. The Yacht Company builds personal yachts. Its annual demand is 10 yachts. This company can build at a rate of one yacht per month. Carrying cost is very expensive and is about $10,000 per year. The setup cost for a production run of yachts is$2,000. Find the order quantity and I max.
6. Basic Code Tech desires a 95% service level to compute their safety stock. Variance of demand over lead time is 64. We computed its new ROP to be 14.16. What is the demand rate per week if we assume its lead time L is one week?
5. Bright Light computed their new ROP to be 116.45. Assume that lead time L is one week and demand rate is 100 units per week. What is the company’s desired service level assuming standard deviation of demand over lead time is 10?
4. We know that Blue Pad Company’s lead time L is one week and demand rate is 100 units per week. Compute the amount of Safety Stock and new ROP assuming that the company desires a 98% service level. Standard deviation of demand over lead time is eight.
3. G-Tech’s monthly demand is 250 units. You are in charge of the inventory department. You know that the holding cost is $60 per unit and ordering cost is $100 per order. What is the EOQ? What is the number of orders per year? What is the annual holding cost? If lead time L is one week and
2. You are inventory manager of Diego Supplies Inc. You computed the EOQ to be 500 units. Annual demand for the company is 5,000 units and holding cost is $4 per unit. What is the ordering cost?
1. Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order.Holding cost is estimated at 20% of product cost which is $50 per unit. What is the number of orders per year using EOQ to compute the best quantity to order? What is the annual holding cost? What is the reorder
5. Identify an example of VMI. Explain the benefits to both the vendor and retailer.Identify some of the risks for both parties.
4. Provide an example of ABC classification in a business you are familiar with. What would be the A inventory items versus B and C? What ordering policies would you use for each of these?
3. Find at least one business example of a fixed-order quantity system versus a fixedperiod quantity system. What are their differences? Which do you think is better and why?
2. Think of a service you recently used. How might this service be restructured to create service inventory as in the example of Zoots? What would they have to do?What advantages would the company gain and how would they better serve their customers?
1. Identify an example of inventory in your own life. Estimate how much it costs you to hold this inventory. Estimate the ‘‘ordering cost.’’ How often do you replenish this inventory and which of the inventory policies does this most closely resemble?
6. What can Bill do to improve his forecasting based on your observations?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight years.When they do replace their vehicles, they tend to
5. If the average sale price for one car is $20,000 and the average car costs $15,000 to acquire, how much profit is being lost each month as a result of poor forecasting?Note: For ease of calculation, assume all cars arrive on the 1st and all cars remaining on the 31st are disposed of with a 50%
4. If Bill’s forecasts are consistently too high or consistently too low, which measure is most useful to remedy the situation? Why?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight
3. Which measure should Bill use to assess forecast error rates? Why?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight years.When they do replace their vehicles, they tend to visit
2. Is this type of forecast appropriate or would an alternative method produce more accurate results? Why or why not?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight years.When they
1. Is Speedy Automotive currently using a time series or causal forecasting? Explain the difference and how you can identify each.It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight
14. Jay Sharp Guard wants to compare the accuracy of two methods that it has used to forecast monthly expenses. Forecasts of monthly expenses from September to November are shown below against the actual expenses. Which method provided best-forecast accuracy? Month Expenses (million) Method A
13. Samuel Bridge Company wants to compare the accuracy of two methods that it has used to forecast yearly profits. Forecasts of yearly profits from 2006 through 2010 are shown below against the actual productions. Comment on their forecast accuracy. Year Actual profits (million) Method A forecasts
12. Henry Lo Manufacturing is comparing the accuracy of two methods that it has used to forecast monthly production. Forecasts of monthly productions from May through August are shown below against the actual productions. Which method provided better forecast accuracy? Month Actual sales Method A
11. John Taylor Salons wants to forecast monthly customer demand from June through August using trend adjusted exponential smoothing. Given a ¼ 0.2, b¼0.4, F MAY¼45, and a TMAY¼0, forecast a FIT for months June through August. Month May June July August Actual sales RAKS 50 61 73 80
10. Mixo Inc. is forecasting its product’s quality on a scale of 0 to 100 based on how many hours are spent for each product. Data are in the following table:How many hours should be spent if the company wants its product quality to be 95?
9. Alexandra is forecasting sales based on the salesperson’s salary. She collected the following data and would like to forecast sales if salary is 6K: Sales (10 K) 1 1.5 2 Salary (K) 2 3 3 3.2 3.5 4 5
8. Gold Roof Hut is trying to forecast its number of customers based on the average price of food. It has been tracking the relationship between number of customers and food’s average price over the past five weeks. The results are as follows:What would be the number of customers if Gold Roof Hut
7. The past two years sales at ACSR Inc. were 2 million and 4 million. Their forecast team used a two-period moving average to forecast its sales this year. But the actual sales for this year were 4 million. Now, the forecast team wants to forecast its sales for next year by using exponential
6. Katherine is a forecast manager. She used exponential smoothing to forecast her sales of coffee cakes for next week and this number is 200. Her forecast for this week was 180 but the actual number is 220. What is her choice for alpha?
5. Green Water Park uses exponential smoothing to forecast monthly visits of customers. Its forecast for June was 1 million, but the actual number of customers turned out to be 2 million. The forecaster decided to use an alpha of 0.8. What is the forecast for July?
4. Smile Cucumber Corp records its sales in a database system. The company wants to forecast monthly sales based on the record of the past three months. The value of the forecast is 10 million if the company uses the simple mean. What is the forecast if the company uses a three-period moving
3. Mr. Zhou repairs computers. He had 45 customers for January, 50 customers for February and 70 for March. He now wants to forecast his customers for April by using a two-period simple moving average. Compute the forecast.
2. Safe Spirit sells novelty hats in New York City. The company uses a simple mean to forecast monthly sales. The forecast of sales for month six was $5,000 obtained by averaging past 5 months’ sales. Sales from months one to four were: $6,000, $7,000,$4,000, and $5,000. However, the sales
1. Beyond Tea Inc. wants to forecast sales of its menthol green tea. The company is considering either using a simple mean or a three-period moving average to forecast monthly sales. Given sales data for the past 10 months use both forecasting methods to forecast periods 7 to 10 and then evaluate
5. Identify the differences between the two methods of collaboration discussed in the chapter: CPFR and S & OP. How are they similar and how are they different? Explain the differences in the organizational objectives they are trying to achieve.
4. Identify an example where large errors would be extremely costly. Which forecast error metric would be best for this environment?
3. Imagine that you are starting a business. What type of forecasting model would you use to decide how many products you will be selling? Would you use the same forecasting model after you have been in business five years? Why or why not?
2. Think of a product you have recently purchased. How many different forecasts do you think the retailer had to make in order to decide how much product to stock?What are the consequences for that particular retailer if they had over forecast versus under forecast?
1. Identify a nontraditional business event, such as forecasting demand for t-shirts following the Super Bowl, or the amount of relief aid needed following an earthquake. What do you think would be the best way to forecast such an event—qualitative or quantitative—and why? What are the
6. What can Bill do to improve his forecasting based on your observations?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight years.When they do replace their vehicles, they tend to
5. If the average sale price for one car is $20,000 and the average car costs $15,000 to acquire, how much profit is being lost each month as a result of poor forecasting?Note: For ease of calculation, assume all cars arrive on the 1st and all cars remaining on the 31st are disposed of with a 50%
4. If Bill’s forecasts are consistently too high or consistently too low, which measure is most useful to remedy the situation? Why?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight
3. Which measure should Bill use to assess forecast error rates? Why?It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight years.When they do replace their vehicles, they tend to visit
2. Is this type of forecast appropriate or would an alternative method produce more accurate results? Why or why not?Case Questions 239 It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every
1. Is Speedy Automotive currently using a time series or causal forecasting? Explain the difference and how you can identify each.It is August 2008 and Speedy Automotive is one of four car dealerships located in rural Wyoming. The residents in the area replace their vehicles roughly every eight
3. What are the key considerations for Scott when deciding on the best possible systems to implement?Scott is not sure which system to implement and what would be the best investment. He assumes that electronic data interchange (EDI) can accomplish real-time information sharing with all of their
2. Help Scott decide if he should invest in either EDI or TMS, or both. Is there another type of system that you would believe would be better? What kind of benefits, including performance and customer satisfaction, can Scott expect by making these proposed changes to the business process?Scott is
1. Identify the characteristics of an ideal information system for this logistics environment.Gather information on both EDI and TMS and compare their suitability for this environment.Scott is not sure which system to implement and what would be the best investment. He assumes that electronic data
3. An electronic company is deciding on which of the two new products should be put in production. It has identified three factors it considers most important and has decided to use Factor Rating to evaluate the two products based on a five-point scale, with 1 being poor and 5 excellent. The
2. DJ Bank is deciding on where to locate its new branch. It has identified three factors it considers most important and has decided to use Factor Rating to evaluate the two candidate locations based on a five-point scale, with 1 being poor and 5 excellent. The factors are: population, average
1. Quick Transport Logistics (QTL) is considering where to locate its warehouse to serve its northeast region. The search has been narrowed to two competing locations and QTL has decided to use Factor Rating to make their decision.They have listed the factors they consider important and assigned a
4. Consider an item you have recently returned. Identify the steps the company would have to go through to return the product back up the supply chain from where you have returned it. What costs do you think would be involved in this process? Is there a way the company can design this reverse
3. Consider an event you are familiar with, such as a baseball game, a rock concert, or delivering aid to an underdeveloped country in need.Map out the logistics tasks needed and their sequence in organizing this particular event.
2. Explain logistics tasks involved in one service supply chain, say involving a hospital or restaurant. How different are these tasks versus those involved in a manufacturing supply chain?
1. Find an example of a product you have recently purchased. Identify the logistics tasks that would have to take place in order for the product to be available for you to have the ability to purchase it.
5. Explain the differences between sourcing manufactured products versus services.Identify some key challenges that would occur in defining service specifications versus manufacturing specifications. Provide an example of each.
4. There has been in a push in many communities to source locally. Identify the risks and benefits of sourcing globally versus locally.
3. Find at least one business example of outsourcing. Explain the risks and benefits.
2. Think of a recent purchase you made in your everyday life. Explain how this purchasing process would be different if you were buying the same product for a firm on a regular basis versus purchasing it for yourself.
1. Identify the primary ways in which the sourcing function impacts supply chain management (SCM). Find an industry example where sourcing has significantly benefited the firm and where it has significantly hurt the firm.Discussion Questions 171
5. Climb and Fly Sports has annual cost of goods sold of $1 million. What is the average inventory assuming 52 weeks per year and weeks of supply equal to 5?
4. H & H store is a retailer of stationary and paper products. It has an annual cost of goods sold of $100,000 and an average inventory of $50,000. What is the annual inventory turnover? If the industry average is 3 turns per year, how does H & H compare?
3. Phoenix & Chow is a family-owned restaurant with an annual cost of goods sold of$520,000 and an average inventory of $50,000. What is the value of weeks of supply assuming 52 weeks per year?
2. Urbanite Hip is a clothing store catering to college students and young professionals. It carries fashion merchandise and wants to ensure that it is using inventory effectively.Cost of goods sold is $5,000,000 and average inventory in dollars is $250,000.a. What is their inventory turnover?b.
1. Jerry’s Auto Repair is concerned about the effective use of parts inventory. His average inventory in dollars is $300,000 and cost of goods sold is $1,500,000.a. What is the inventory turnover for Jerry’s Auto Repair?b. Assuming 52 weeks per year, what is the weeks of supply?c. What do these
6. What are the risk trade-offs in your decision (e.g., placing blame versus accumulating evidence; dropping a supplier versus standing by a supplier)?You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of Global Sourcing, to whom you report.
5. Do you continue long term contracting with this supplier? Do you penalize this supplier?You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of Global Sourcing, to whom you report. There has been a problem with at least eight vehicles
4. What should you say to your supplier? How should you say it (e.g., in public or private; in a meeting or in writing)? What action do you expect them to take?You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of Global Sourcing, to whom you
3. What information do you want to collect and from who to identify causes?You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of Global Sourcing, to whom you report. There has been a problem with at least eight vehicles exhibiting sticking
2. What should be said to your customers? How should you explain the problem?You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of Global Sourcing, to whom you report. There has been a problem with at least eight vehicles exhibiting sticking
1. Identify the exact sequence of steps—a ‘‘project plan’’—on how to handle this problem, from dealing with customers to identifying causes. Explain what should be done and why.You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of
4. What negative impact can e-auctions have on supplier relationships and how can Brandt ensure that they do not occur?It was August 7th and Brandt Womack had just been given his first assignment by his purchasing manager at Miami based Snedeker Global Cruises Inc. It was the ‘‘E-Auction
3. Assume Brandt has identified products to purchase through e-auctions. What steps does he need to take to conduct a successful e-auction?It was August 7th and Brandt Womack had just been given his first assignment by his purchasing manager at Miami based Snedeker Global Cruises Inc. It was the
2. Identify differences between traditional purchasing and use of e-auctions. How can Brandt use these differences to make his selection? What types of items would be best suited for purchase through e-auctions?It was August 7th and Brandt Womack had just been given his first assignment by his
1. Suggest steps Brandt should follow to begin the EDP process.It was August 7th and Brandt Womack had just been given his first assignment by his purchasing manager at Miami based Snedeker Global Cruises Inc. It was the ‘‘E-Auction Development Program’’ (EDP). The purpose of EDP was to
5. Lewis Noodles has the following cooking procedures. You will need to compute the cycle time per day and the minimum number of workstations assuming eight working hours a day and 500 units need to be made per day. TASK A DESCRIPTION Cook vegetables TASK TIME PRECEDING TASK B Cut noodles 2 minutes
4. Given the following manufacturing precedence relationships, compute the cycle time per day and the minimum number of workstations assuming eight working hours a day and 400 products need to be produced per day. TASK ABCDE DESCRIPTION TASK TIME PRECEDING TASK Punching Bending Combining 30 seconds
3. A company’s break-even quantity for a product is 1,000. What is the selling price for each product assuming $10,000 fixed cost per year and $20 variable cost per product?If the company sells 2,000 products at the selling price, what will be the contribution to profit?
2. James Pens has designed a new lawn care product called the mini-mower, and is now considering its processing needs. The variable cost for each mini-mower manufactured is $30. Fixed cost per year is estimated to be $20,000. James is planning to sell each mini-mower at a price of $40. How many
1. Green Go Monitors is ready to release their new intelligent monitors. The variable cost for each product is $2,000. Fixed cost per year is estimated to be $100,000. If the company sells each product at a price of $2,500, how many products must be sold to break even? If the company sells 1,000
4. Explain the concept of cycle time and explain how it affects layout. How does it affect suppliers?
3. Find an example of a process layout of a local business. Draw a diagram and try to find a way to improve it.
2. Find a company you are familiar with and explain how it uses operations. How is its operations function tied to its supply chain? Do you have any suggestions for their improvement?
1. Identify major differences between a service and manufacturing operation. Find an example of a service and manufacturing company you are familiar with and compare them.
5. We all encounter CRM in our everyday lives—from our purchases at the grocery store to our online searches. Provide examples from your everyday life where companies were able to gather information about your consumer preferences.
4. Identify a product currently marketed for household use. Imagine you were asked to market the product for commercial use. How might the product characteristics change and what would be the impact on the supply chain?
3. Identify a product market that is currently experiencing changes in customer preferences. How are the companies in that industry responding to the changing preferences? What are the supply chain implications?
2. Find an example of a product where you felt there were too many product choices.Explain the implications for the company and their supply chain.
1. Describe the differences between transactional and relational marketing. Provide an example from your own life where you have encountered them. How did each make you feel as a customer?
3. Discuss the advantages and disadvantages to going with one exclusive distributor.How would this decision be affected by the selection of target market? What would be the implications on the supply chain? What would you do if you were Orange?Orange Company was based out of Southern California and
2. If Orange decided to go after multiple market segments, identify the supply chain requirements. Should they have multiple supply chains?Orange Company was based out of Southern California and was doing remarkably well considering that only 10 years earlier the company had been merely a hobby for
1. Identify at least two different possible target markets for the Gizmo. How would the marketing strategy differ for each target market? How would the pricing strategy change and the volume sold? Identify the supply chain implications for each target market.Orange Company was based out of Southern

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Supply Chain Management A Global Perspective 1st Edition Nada R. Sanders - Solutions

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