What is the special problem posed by the newsvendor model?
Given uncertain, variable demand, the seller is likely to stock too many or too few with only a
short time frame to sell the product at full cost.
Everything else held equal, a decrease in the
Which is a key reason that companies need to develop more agile capabilities?
Customer purchase patterns are changing.
Which type of flexibility refers to the ability to scale output up and down without significant
In a retail store, when does the lead time end?
When the inventory is stocked on the shelf
Lead time is best defined as:
The time between when an order is placed and when it is received and available for use
Lead time is the time between when
As the order quantity decreases, what happens to inventory holding cost?
It should decrease.
As the order quantity decreases, what happens to setup cost?
It should increase.
The Economic Order Quantity (EOQ) seeks to
Minimize the setup cost and holding
Clearfield Cheese Company
1. What are three problems that Clearfield Cheese Company is facing? At
least one problem should address transportation. (Hint: you can use any of
your business studies to address the problems)
Three problems that Clearfield Chee
Profit (pi) TR-TC (total revenue total cost) total value total cost
TR Price times demanded
Dpi/dQ= 0+(SDQ^-2)-(1/2 KC)=0
Q=sqrt(2SD/KC) plus or minus (EOQ)
EXTRA CREDIT ON FINAL
Supply Chain Management
The management of the chain of supplies
Healthy supplieshealthy supply chain
Purchasing executives shoppers
High quality materials
Bones and muscles of the body supply chain
You are what you eat
You are who you negotiate with
International Payment Characteristics
Exporters tend to prefer conservative measures in handling their foreign receivables for the
Credit information: much less information on the creditor in a foreign market than in a domestic
Contrast the various currency options available for international transactions.
Explain the risk of currency exchange rates to the exporter and importer.
Identify international banking institutions.
Defend the IMF mission.
International and domestic transactions is the bill (invoice) that the exporter sends to the importer
Commercial Invoice: document sent by the seller to the buyer that lists the goods purchased and the
Cargo Airlines, Airports, and Markets
Freight tonne kilometer (FTK): a unit designed to express cargo volume shipped. It is equal to
the number of tonnes of cargo shipped multiplied by the number of kilometers they were skipped
Types of service
Semi truck: an articulated truck that is made up of a tractor and a trailer
Piggy back: placing semi trucks or trailers on railroad cars
Used in North America
In Switzerland, trucks cannot cross the country, so they are
Types of Service
Private: owned by merchants or manufactures themselves to carry their own goods
Liner ships: a ship that operates on a regular schedule, traveling from one group of ports to
another group of ports
Pre-established schedule, de