Benetton has entered into a quantity flexibility contract for a seasonal product with its retailer. If the retailer orders O units,
Benetton is willing to provide up to another 35 percent if needed. Benettons production cost is $20 and they charge the
Market Demands and Duties
Excersise 11-9: Epson
Weekly demand for Epson printers in Europe
Target cycle service level
Solution to Assignment I
Problem 1: (24 marks)
a. This problem asks the lowest cost for production and distribution before the merger,
NOT facility decision. Thus, all facilities should be running and opening/closing
facilities is not a par
1. Which option delivers the maximum profit for the supply chain: Sandras plan,
Bills plan, or no promotion at all?
The bottom-line results for the three plans are:
Sandras plan $48,972,
Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and
capacities are shown in Table 1 along with the cost of producing 1 ton of ink at each facility. The
production costs are in the local currency of the co
Exercise 12-5 Snoblo
Snoblo, a manufacturer of snow blowers, currently sells four models. The base model, Reguplo, has demand that is normally distributed with a mean of 10,000
and a standard deviation of 1,000. The three other models have additional feat
1. Why is it important to consider uncertainty when evaluating supply chain design
There is little in life that is certain, so it is important to consider the impact that
uncertainty has on the
Exercise 12.11: DoorRed Pharmacy
Daily demand for Aspirin at DoorRed Pharmacy is normally distributed with
a mean of 40 bottles and a standard deviation of 5. The replenishment lead
time from the supplier is 1 day. The current inventory policy at DoorRed
Exercise 12-3: Goodstone Tires
The manager at Goodstone Tires, a distributor of tires in Illinois, uses a continuous
review policy to manage their inventory. The manager currently orders 10,000 tires
when the inventory of tires drops to 6,000. Weekly dema
Sourcing Decisions in a Supply Chain
Purchasing, also known as procurement, is the process used to rate supplier
Sourcing processes include the selection of suppliers, design of s
Excercise 11-7: Epson
Epson produces printers for sale in Europe in its Taiwan factory. Printers sold in different countries differ in
Inputsof the power outlet as well as the language manuals. Currently Epson assembles and packs printers
for sale i
1. What is the annual cost of MoonChems strategy of sending full truckloads to
each customer in the Peoria region to replenish consignment inventory?
MoonChems customer profile appears in Table 10-4 and is reproduced below:
Significant level of outsourcing
Many leading brand OEMs outsource complete
manufacturing and design of their products
More outsourcing has meant
Search for lower cost manufacturers
Development of design and man
1. What role does forecasting play in the supply chain of a build-to-order
manufacturer such as Dell?
Although Dell builds to order, they obtain PC components in anticipation of
customer orders and ther
AK/ADMS 4333: Supply Chain Management
(full marks: 50)
1. (18 marks)
a. Assuming that Motorola follows a continuous review policy, what
reorder point and safety inventory should the warehouse aim when
using sea or air transportation?
Pricing and Revenue Management in the Supply Chain
Revenue management is the use of marketing to increase the profit generated
from a limited supply of supply chain assets.
Pricing may influen
Designing the Distribution Network in a Supply Chain
Distribution occurs between every pair of stages in the supply chain.
Distribution only occurs between manufacturing and consumers in the sup
AP/ADMS 4333: Supply Chain Management
Due on Thursday, April 1, 2010
Please note that I extended the due date of this assignment since I rescheduled the
1. Motorola obtains cell phones from its contract manufacturer loca
Understanding the Supply Chain
A supply chain includes only the organizations directly involved in supplying
components needed for manufacturing.
A supply chain consists of all parties involved
Determining Optimal Level of Product Availability
The level of product availability is also referred to as the customer service level.
A supply chain can use a high level of product availability to
Excersise 12-1: Green Thumb
Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. The
anticipated demand is normally distributed with a mean of m = 100 and a standard deviation
of s = 40. Each unit costs $150 to manufacture and
Transportation in the Supply Chain
Transportation plays a key role in every supply chain because products are
usually produced and consumed in the same location.
Freight transportation costs in th
Managing Economies of Scale in the Supply Chain: Cycle Inventory
Cycle inventory exists because producing or purchasing in large lots allows a
stage of the supply chain to exploit economies of scale and increase cost.
Coordination in the Supply Chain
Supply chain coordination improves if all stages of the chain take actions that
together decrease total supply chain profits.
Supply chain coordination requires ea
Supply Chain Drivers and Obstacles
The major drivers of supply chain performance are facilities, inventory,
transportation, and information.
The major drivers of supply chain performance are cus
Demand Forecasting in a Supply Chain
The forecast of demand forms the basis for all strategic and planning decisions in
a supply chain.
Throughout the supply chain, all pull processes are perfor
Planning Supply and Demand in the Supply Chain:
Managing Predictable Variability
Predictable variability is change in demand that cannot be forecasted.
Faced with predictable variability of demand,
Aggregate Planning in the Supply Chain
The goal of aggregate planning is to satisfy demand in a way that minimizes
Aggregate planning is a process by which a company determines levels of
Input Data (Demand)
Input Data (Costs etc.)