Question 52 (6 points) E ) Listen In The Fresh Connection you have the option of Dual Sourcing for some components. Give an example of how you could tailor source one of your components (2 marks). What are two advantages of dual sourcing (2 marks) What are two disadvantages of dual sourcing (2 marks) 4 Question 53 (6 points) Listen Please indicate which Virtual Plant Tour video you were assigned in Week 11 Module. Please outline three activities the company did to increase their supply chain surplus and explain how these activities contributed to increasing their supply chain surplus. (6 marks) A In The Fresh Connection you had the option of purchasing a module that can be added to a bottling line that, inflates little preformed PET bottles (preforms), into full size PET bottles. If this module is added, then these preforms can be purchased at the supplier, instead of full size PET bottles. Preforms take significantly less space than full size PET bottles, namely a factor of 10 and they cost half of what a ready- made PET bottle costs. Adding the module will cost an extra 140,000 per annum and an investment of 700,000. Where will the savings come from that will offset the 140,000 per annum and investment of 700,000? (3 marks) A Previous Page Next Page Page 49 of 49 In The Fresh Connection you had the option of increasing your Promotional Pressure. If a decision was made to increase the promotional pressure what other changes would need to be made in any of the areas (sales, purchasing , supply chain and operations) to accommodate this increase in promotional pressure (6 marks): AJ Match the type of aggregation with the the way the third party could increase the supply chain surplus When shippers want to send small quantities, the shipping company aggregates shipments across multiple shippers thus lowering the cost of each shipment below what could be achieved by the shipper alone. A third party can increase the supply chain surplus by aggregating stock across a large number of customers lowering overall uncertainty, improving economies of scale and allowing individual customers to reduce their safety stock 1. Capacity Aggregation 2. Inventory aggregation 3. Transportation Aggregation A third party can increase the supply chain surplus by Aggregating demand across multiple firms and gaining production economies of scale that no single firm can on its own 4. Warehousing Aggregation 5. Procurement Aggregation Aggregating storage needs over several firms increases supply chain surplus by by lowering real estate costs and lower processing costs. It is good to do this if storage needs are small or needs fluctuate over time. Aggregating buying for many small players facilitates economies of scale in ordering, production and transportation Question 50 (1 point) Listen Which of the following would we not consider when deciding to outsource? The amount the third party will increase the supply chain surplus relative to performing the activity in-house. Risks involved in outsourcing. How outsourcing aligns with the company's strategy. The benefits of losing control of the activities outsourced.