LOG3632 Assignment_1 05 1. Please calculate the SC performance measures below for the firm that we know had $3410000 worth of (cost)goods sold last year. Part Number Unit Value Category Raw materials 1 $3.00 5.00 2 3 1.00 Average Level 15.000 2.500 3,000 5,000 4,000 2.000 1.000 Work-in-process 4 14.00 18.00 5 Finished goods 6 48.00 7 62.00 What is the average aggregate inventory value? What is the weeks of supply (assume 52 weeks in a year)? What is the inventory turn? What would happen to the inventory turnover and weeks of supply if the manufacturer were to experience: Increase in demand An increase in holding cost Please comment with at most three sentences 2. Draw the chart (you can directly copy and paste from the relevant slide) which shows the relationship between demand volume, demand variance and SC design. Specifically show the regions where efficient and responsive supply chain strategies best fit. Provide one unique example for each of the two supply chains designs we have covered: namely efficient and responsive supply chains. (Ex efficient SC design is suitable for pencil production business, fashionable apparel design is suitable for responsive SC design) and justify your association with a couple of sentences. 3. Draw an approximate (random) efficiency curve on a two dimensional total cost vs. supply chain performance chart. Then draw another curve on this same chart to represent the improved efficiency curve. (you can directly copy and paste from the relevant slide) 4. A retailer must decide whether to build a small or a large facility at a new location. Demand at the location can be either low or high, with probabilities estimated to be 0.4 and 0.6, respectively. If a small facility is built and demand proves to be high, the manager may choose not to expand (payoff = $223.000) or to expand (payoff = $270,000). If a small facility is built and demand is low, there is no reason to expand and the payoff is $200,000. If a large facility is built and demand proves to be low, the choice is to do nothing ($40,000) or to stimulate demand through local advertising. The response to advertising may be either modest or sizable, with their probabilities estimated to be 0.3 and 0.7. respectively. It it is modest, the payoff is estimated to be only $20.000; the payoff grows to $220,000 if the response is sizable. Finally, if a large facility is built and demand turns out to be high, the payoff is $800,000 the decision tree for this problem Provide the decision for each of the following decision strategies a. Assume you have no idea about the probabilities regarding the occurrence chance of state of the nature nodes (i.e. assume you are NOT given the probabilities of low demand and high demand). Under decision making complete uncertainty find the best decision by adopting following points of view: 0 o Optimistic Pessimistic o Laplace/Liberal b. Show the best choice for the decision taken under risk. c. Provide the value of perfect information by taking the difference of the value of decision under complete certainty and decisions under risk. 5. List the outsourcing types we have covered in the class