effective? 1. (40%) Bullwhip a) (10%) Why bullwhip occurs in a supply chain? b) (15%) Does that contradict with the risk pooling in terms of variability? Explain. c) (15%) Can the bullwhip be alleviated if the number of levels for the supply chain is reduced (e.g. eliminate the distributors)? If so‚ why don’t we just keep the supply chain as flat as possible (i.e. reduce the number of the levels required in the supply chain as much as possible)? 2. (60%) Case: “The Great Inventory Correction”
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for examination 1. Which of the following statements is correct? A. Recent trends such as lean manufacturing and offshoring decrease the level of risk in the supply chain. B. Accurate forecasting techniques solve most supply chain problems. C. Many retailers observe that inventory levels fluctuate considerably across a supply chain. D. In general‚ the total inventory costs are higher than the total transportation costs in the overall logistics costs for a country. 2. There can be many reasons
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(Quyen) 4.9.1 Reason – Supply chain management decisions are based on forecasts that define which product will be required‚ in what amount‚ and when they will be needed. The demand forecast becomes the basis for companies to plan their internal operations and to cooperate among each other to meet market demand. All forecasts deal with four major variables that combine to determine what the market conditions are likely to be: * Demand * Supply * Product characteristics
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Case Study #3: A Pain in the (Supply) Chain Highlights This case is about the bullwhip effect and supply chain coordination Read “A pain in the (supply) chain” in the course pack and the supply chain integration (bullwhip effect) chapter in the textbook. To meet the target of 9% sales growth‚ Exceso Corporation (the manufacturer) starts an aggressive promotion (sharp discount in the price) to its retailers‚ despite the obvious downside of doing so. Please read the case carefully and
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levels for the six European options‚ assuming a weekly periodic review replenishment. 4 4. Assuming a 20% gross margin for each printer‚ sea transportation costs of $1 per printer and air transportation costs of $10 per printer (air shipment lead-time is three days)‚ evaluate the various alternatives available to Brent Cartier to address the inventory and service problem. 6 5. Bibliography 8 1. What has caused the so-called Inventory/Service "Crisis"? In 1990’s‚ Hewlett-Packard faced
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Supply Chain Management Network Design and Facility Location Classical Theories von Thunen Agricultural activity occurs in a “limitless plain of equal fertility” with a city in the middle Theorized that: City price = origin price + transport costs Transport costs = f {weight & distance} As a result Products having high weight/value ratio should be produced near the city (see next slide) Other Contributions Land values decrease as move from city More intense land utilization near
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Q1. Consider the supply chain involved when a customer purchases a book at a bookstore. Identify the cycles in this supply chain and the location of the push/pull boundary. When a customer purchases a book from the book store‚ a complete supply chain cycle which involves procurement‚ manufacturing‚ distribution‚ replenishment and customer delivery takes place. The different supply chain cycles are quite separated in this case because each cycle occurs at the interface between two successive stages
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1 How can postponement of product differentiation be used to improve supply chain profitability? Postponement‚ also known as "delayed differentiation‚" is a supply chain strategy that delays product differentiation at a point closer to the customer. This involves designing and developing standard or generic configurable products that can be customized quickly and inexpensively once actual consumer demand is known. Postponement also entails the implementation of specific inventory strategies to deploy
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being made in other countries even though it was destined for a U.S. company. Technology has been a major force in the change of the marketplace. Social media has become an increasing role in business organizations and eventually will influence supply chains because they have a strong impact on the customers demand. The new CEO of SAB‚ Susan Weber‚ will have to embrace the new technology and keep up with it because it will be key to success. A good technique to organizational consolidation is collaborating
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Discuss And Illustrate The Economic Justification For Establishing A Warehouse Storage has always been an important aspect of economic development. For manufacturers‚ strategic warehousing offered a way to reduce holding or dwell time of materials and parts. On the outbound side of manufacturing‚ warehouses can be used to create product assortments for customer shipment. An important charge in warehousing is maximum flexibility. Ideally a warehouse will simultaneously provide economic and service
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