According to Marshall Fisher’s framework, high-end, customizable smartphones are classified as due to their short life cycles, high profit margins, high customization options, and volatile demand. Designing an efficient supply chain for this product would result in stockouts or massive obsolescence costs. Therefore, a responsive supply chain is appropriate. The company should use strategies like postponement (keeping components modular and assembling only when a customized order arrives) to manage risks. Analytical and Quantitative Sample Questions Question 3: Economic Order Quantity (EOQ)
Explain the concept of 'strategic fit.' How should the supply chain strategy differ for a company selling standard office paper versus a company selling high-end, customizable smartphones? The Bullwhip Effect
Ready to create a quiz? Use Canvas to test your knowledge with a custom quiz Get started
A consumer printer manufacturer sells devices across North America, Europe, and Asia. Historically, they manufactured region-specific power cords and localized packaging at their central factory in China, causing massive stockouts in some regions and inventory gluts in others. supply chain management midterm exam questions
Moving averages, exponential smoothing, and linear regression.
A fashion retailer is purchasing winter coats for the upcoming holiday season. The coats sell for $200 each and cost $90 to buy from the manufacturer. Any unsold coats at the end of the season will be sold to a liquidator for $40. Demand for the coats is normally distributed with a mean of 1,000 and a standard deviation of 150. Determine the optimal number of coats the retailer should order. Answer: First, calculate the Cost of Underage ( Cucap C sub u ) and Cost of Overage ( Cocap C sub o Cucap C sub u (Profit lost per unit by underordering): Price $- −negative $90 = $110 Cocap C sub o (Loss incurred per unit by overordering): Cost −negative Salvage Value = $90 −negative Next, determine the Critical Ratio ( CRcap C cap R
Do you cut the supplier? Or do you implement a ‘corrective action plan’ that will take 8 months, during which forced overtime continues? Defend your decision using three distinct ethical frameworks: utilitarian, deontological, and virtue ethics. Then, propose a structural supply chain redesign that would make this trade-off obsolete.” The company should use strategies like postponement (keeping
Aligning competitive strategy (what customer needs a company aims to satisfy) with supply chain strategy (capabilities of the supply chain).
B Explanation: A chase strategy dynamically hires and fires employees or adjusts hours to mimic demand. This keeps finished-goods inventory low but incurs high training and recruitment costs. A level strategy (Option A) keeps production constant and uses inventory as a buffer. Question 6 (Short Answer)
Capital tied up in transit for weeks while goods cross oceans. Use Canvas to test your knowledge with a
a) Calculate the optimal service level and order quantity for a single day. b) At what weekly volume does the salvage membership break even? c) Now introduce a ‘bullwhip effect’ where the child’s demand forecast is based on the previous day’s sales, plus a random error term of ±20%. Simulate three periods mentally and describe the oscillation pattern. Explain how this tiny stand mirrors the 2008 baby formula shortage.”
Balances holding costs and ordering costs to find the optimal order size.