Part 1. Purchasing and Forecasting.

1. Source determine is said to be a matchmaker between material and source(or vendor) in doing so, we have four possible cardinalities between: one-to-one, one-to-many, many-to-many, many-to-one. Explain each alternative cardinality as purchasing policy; and, discuss pros and cons for each alternative. (Clearly define each purchasing policy and related implications.

2. regarding supplier-base structure, there are two extreme approaches: American style such as GM's and Japanese style like Toyota's. Explain each alternative; and discuss pros and cons for each alternative in relation to supplier-base rationalization. (Point out characteristics of each alternative in relation to pros and cons.)

3. Among various time-series models, the most popular one is and Exponential smoothing mode. Exponential smoothing modes has one parameter, 'alpha,' which is called a smoothing constant. State characteristic and role of the smoothing constant; and explain how to decide the value of it in relation to market environment. (Define possible value of 'alpha' with its implications.)

Part 2. Inventory fundamental, order quantity and order point.

1.Cross-docking model is one of best-practices for replenishment in retain industry such as convince store chain. Explain how to construct the cross-docking model using four traditional roles of distribution channel: consolidation, break-bulk, sorting and assorting. Also, explain advantages of cross0docking model. (Clearly mention the steps of developing cross-docking system.)

2.Vendor-managed Inventory (VMI) is the most popular best-practice in industrial market. explain the preliminaries, how it works and advantages of VMI. (Take and example as possible.)

3. One of the key decisions in inventory management is to decide when to make replenishment, called order point (OP). OP is determined by desired service level or expected shortage probability which is dependent on the amount of safety stock (SS). Explain when the SS tends to increase or decrease given same level of desired service level. (Explain exactly how and why SS decreases or increases.)

Part 3. Warehouse management and Distribution channel.

1. There are two extreme alternatives in warehouse layout: fixed location and floating location. Define each alternative, discuss pros and cons and explain when each of alternative is preferred. (Take examples as possible.)

2. In distribution logistics, we have to competing alternatives: point-to-point and 'hub & spoke' distribution. Explain how to develop the hub & spoke model; and discuss advantage of the model. (Explain mathematically as possible.)