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business
supply chain management 2nd
The Management Of Business Logistics A Supply Chain Perspective 7th Edition John J. Coyle, Edward J. Bardi, C. John Langley - Solutions
7. Define strategic sourcing and e-procurement. In what ways do strategic sourcing and e-procurement reinforce the objectives of each other?
. What are some of the more popular technology-based strategies?
. What is the overall goal of asset-based strategies? In what ways does a move to third-party logistics facilitate or hinder accomplishment of this goal?
. Explain the benefits of time-based logistics and supply chain strategies. What are some of the types of strategies that are included in this category?
. What are the three types of strategies? What would you think of a firm that did not evidence a commitment to any of these three types of strategies?
. How would you distinguish between strategy and tactics? Provide an example of each.
i What is meant by strategy, and how have business strategies evolved over the past fifty years?
10. Construct a financial model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following: (a) On-time delivery increases from 98 percent to 99 percent with a 2 percent increase in transportation cost, and (b) Order fill rate decreases from 99
9. Discuss the financial implications of supply chain service failures.
8. Develop a strategic model to depict the scenarios given in Problems 6 and 7.
7. Using the supply chain finance model developed for Problem 6, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following scenarios:a. Transportation costs increase 15 percent.b. Warehousing costs
6. Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin; ROA; inventory turns; and trans portation, warehousing, and inventory costs as a percentage of revenue for the following:Sales = $200,000,000; Transportation cost =
5. Explain the strategic profit model and how it can be used to analyze supply chain alternative strategies.
4. Explain the connection of the supply chain management areas of channel structure, inventory, order processing, and transportation to return on assets.
3. Determine the sales equivalent of a $25,000 supply chain cost savings when the profit margin is (a) 20 percent, (b) 5 percent, and (c) 1 percent. What conclusions can be drawn between sales equivalent and profit margin for a given supply chain cost savings?
2. What is the relationship between supply chain management and a company’s income statement and balance sheet?
1. Discuss the impact supply chain management has on a company’s profitability.
What are some of the key challenges to be faced by those individuals and firms involved with implementing new and innovative logistics information technologies?
10. What is the objective of the research and intelligence subsystem of the LIS?What activities are performed by this subsystem?
. Discuss a logistics information system in terms of its purpose and components.
. What information technologies are recognized as being particularly useful and relevant to the logistics process?
. Explain what is meant by supply chain “disintermediation” and how it may occur?
. How does the “Customer-Centric Value Web Model” relate to the availability of new and innovative information technologies?
. What impacts on logistics and supply chain activity are being created by the“connected” economy?
. Discuss how an “information systems architecture” can be used to build an information system.
. What is meant by “quality” of logistics information?
. What are some of the most prevalent issues involving information systems today? Which are of greatest concern to companies?
Lz In what ways are the availability of capable information systems related to the effective management of logistics and supply chain processes?
What is meant by “collaborative” relationships, and how are they relevant to supply chain issues?
To what extent do clients/customers think of their 3PL providers in a strategic sense? What evidence suggests that this may change in the future, and what kind of change may be expected?
To what extent are clients/customers satisfied with 3PL services? What is the relative importance of cost, performance, and value creation as determining factors for evaluating and selecting 3PLs?
. In what ways are clients/customers counting on 3PLs for involvement with information technology-based services?
. Why do some firms choose not to use the services of 3PL firms?
. What are some of the more frequently outsourced logistics activities? Less frequently outsourced?
. What are the basic types of 3PL firms, and which are in most prevalent use?
. What are some of the more common “drivers” and “facilitators” of successful supply chain relationships?
. Describe the steps in the process model for forming and implementing successful supply chain relationships. What step(s) do you feel is (are) most critical?
. What does it take to have an area of “core competency”? Provide an example.
. How would you distinguish between a vendor, a partner, and a strategic alliance? What conditions would favor the use of each?
. What are the basic types of supply chain relationships, and how do they differ?
4. You are shipping a ten-pound box (12” x 12” x 12”) of dry roasted peanuts in the shell from Atlanta, Georgia, 30001, to Chicago, Illinois, 60601. Comparing the charges for this shipment by FedEx (http://www.fedex.com), UPS(http://www.ups.com), and the U.S. Postal Service
3. Calculate the shipping cost to move 1,500 pounds of aluminum powders in Package 2452 to Baltimore, Maryland, from Reading, Pennsylvania.
2. What is the freight cost to move 22,000 pounds of putty from Reading, Pennsylvania, to Baltimore, Maryland? The putty is in a container in a steel-lined tub with a wooden cover.
1. Determine the cost of shipping 8,500 pounds of blue, ultramarine, powdered paint in bulk in double bags to Newark, New York, from State College, Pennsylvania.
10. Describe the circumstances under which a company would utilize the line-haul services of reconsignment and diversion, pooling, stopping in transit, and transit privilege.
9. Discuss the economic and operation impact of a carrier’s terminal services upon the shipper and carrier rates.
8. What is the economic implication of cost of service, value of service, shipment weight, and shipment distance in carrier pricing?
7. Discuss the cost implications to the buyer of the thirteen Incoterms.
. Describe the function of the following documents: bill of lading, freight bill, freight claim, certificate of origin, letter of credit, carnet, dock receipt, and airway bill.
. How has economic deregulation of transportation impacted shippers?
. What is the basis of economic regulation of transportation? Explain the rationale for economic deregulation of transportation.
. How would a transportation manager monitor the quality of service provided by the carriers used?
. Discuss the concept of market power and show how it relates to carrier negotiation and carrier contracting.
I: Describe the transportation management philosophy existing today, pointing out the major strategies firms use.
4. Develop a process map depicting the information and product flows in Tom’s proposal.
3. What ownership and management structures would you recommend for the distribution warehouses?
2. What is your opinion of Tom White’s proposal for establishing a series of distribution warehouses?
1. Analyze the logistics service and cost constraints imposed on VP by the chain store’s latest demand.
10. How has bar coding affected packaging, materials handling, and inventory control?
9. What functional areas in a company are interested in packaging? What is the nature of their respective interests? What types of disagreements may arise because of these varying interests?
8. One objective of materials handling is to increase effective capacity, that is, to improve space utilization. How does materials handling help to achieve this objective?
7. We frequently define materials handling as short-distance movements. What exactly does that mean? Where does this short-distance movement take place?Why are logistics managers concerned about materials handling?
6. How is the trend toward JIT inventory control systems likely to affect the number of warehouses companies operate? Why?
5. Movement and storage are the two basic functions of warehousing. Discuss the emphasis placed on these two basic functions in cross-docking, distribution, and basic raw material warehouses. What is the rationale for the similar or different emphasis?
. Public warehousing use is increasing among many large manufacturers in the 2000s. Why would a company such as Proctor & Gamble, which produces a wide variety of consumer goods, move toward public warehousing?
. The trend in private warehousing is to use fewer but larger facilities in the network.Discuss the underlying economic rationale for this strategic shift in the number and size of private warehouses.
. Some managers argue that warehousing can aid companies in providing valueadded service for their customers. What is your view of this statement?
1. During the 2000s, many companies are focusing upon the logistics pipeline to meet their customers’ needs for shorter lead times or response times. How can warehousing help companies to achieve quicker response times?
. What alternative should Nittany Fans use?
. What is the total cost using motor carrier transportation?
. What is the total cost using rail transportation?
. What is the total cost (not considering transportation-related costs) of the EOQ?
1. What is the economic order quantity (EOQ) for Nittany Fans in units? In pounds?
2. What are the advantages and disadvantages to Beierlein?
1. Prepare a rationale for Beierlein to use with its customers.
10. Compare and contrast the CRP, QR, and ECR approaches to inventory replenishment.
9. "Demand pull replenishment strategies have made traditional push strategies obsolete." Critique this statement.
8. What are the major characteristics of the replenishment strategies utilized by Dell Computer to minimize its supply chain costs and maximize customer ser-vice levels?
7. Jim Gatto and Terry Edwards of Micros and More are considering consolidat-ing into one warehouse in Tyrone, Pennsylvania, to take advantage of a newly constructed interstate highway (199) and access to a major Wal-Mart ware-house in Clearfield, Pennsylvania. They need to estimate the change in
6. Don Warsing of Micros and More is struggling with determining stockout costs in order to set appropriate customer service levels. He has developed the fol-lowing information: 40 percent of stockouts will result in a back order with a cost of $5.00 per back order; 40 percent of the stockouts
5. Explain the essential characteristics of MRP, MPS, and DRP. How do they oper-ate in conjunction with each other to provide a systemic approach to manag-ing inbound and outbound inventory?
4. Why has the JIT approach to inventory control become popular in some indus-tries? How does the JIT approach compare to EOQ approaches to inventory man-agement? Should JIT be adopted by all inventory managers? Why, or why not?
3. Compare" and contrast the fixed quantity version of the EOQ model and the fixed interval version. What factors affect which version should be utilized?
2. What is the difference between dependent demand and independent demand items? Why is this distinction important to inventory managers?
1. Micros and More is considering whether it should use a demand pull approach to inventory control of its finished goods inventory or a more traditional approach. Explain the essential differences between a demand pull and a push strategy. What would you recommend for Micros and More? Why?
2. What additional solutions do you propose? Why?
1. Evaluate the alternative solutions being considered by Jennifer Roberts.
12. How is inventory turnover calculated? What is the nature of the relationship between inventory carrying cost and inventory turnover?
11. What key questions would you raise when judging the effectiveness of a com- pany's inventory management approach? If the calculated value of inventory as a percentage of sales appears to be rising, would this concern you? Explain.
10. What is meant by inventory visibility? What are the benefits of inventory visibility?
9. Discuss the cost of carrying inventory in transit.
8. Why is it generally more difficult to determine the cost of lost sales for finished goods than it is for raw materials inventories?
7. Explain the differences between inventory carrying costs and order costs.
6. How can inventory carrying cost be calculated for a specific product? What suggestions would you offer for determining the measure of product value to be used in calculations of inventory carrying costs?
5. What are the major components of inventory carrying cost? How would you measure capital cost for making inventory policy decisions?
4. Why is inventory management such a challenge to companies such as Kimberly-Clark?
3. As COO, would Jim Gatto's perspective on inventory be different than the chief financial officer (CFO) and the chief marketing officer (CMO)? Why or why not?
2. Write a memo to Jim Gatto, COO of Micros and More, explaining the reasons for carrying inventory. In your memo, also indicate which of the major reasons for carrying inventory would be most important to his company and why.
1. Explain why inventory costs and inventory levels have declined relative to GDP over the last twenty years. Is this beneficial to the economy? Why, or why not?
. What strategies do you suggest for maintaining procurement service levels?
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