Chat with AIExam 21: Supply Chain Management Analytics
For the disaster risk decision tree model,explain why an increase in S and an increase in U have the opposite impact on the choice of how many suppliers to use.What is the implication of these two phenomena taken together?
(43) 
VerifiedFrom formula (S11-1),we notice that when S increases, (1 - S)decreases;therefore,the disruption risk probability due to all suppliers individually failing at the same time receives less weight.In other words,there's a higher chance that all will be disrupted by a super-event anyway,so there is less incentive to increase the supplier base to handle the case where every supplier has a unique-event at the same time.Mathematically,the impact of a higher n in the second term is smaller because it's being multiplied by (1 - S),which is smaller.Having said that,a larger S does increase the overall probability of total disruption,so it's never a desired occurrence--it just means that simply adding more suppliers may not be quite as effective of a mitigation strategy.On the other hand,when U increases,the impact of the second term of formula (S11-1)increases,so adding another supplier (raising n by 1)has even more impact.This makes sense--the greater the chance that each supplier will individually fail,the more likely it is that we will want more suppliers.
An implication of all of this is to try to reduce the value of S by changing the geographical landscape.In other words,in most circumstances,S would be larger for a city than for a country than for the whole world.Therefore,a geographically diversified supplier base would reduce S.In conclusion,when multiple suppliers are used,managers may consider using ones that are geographically dispersed to lessen the probability of all failing simultaneously.
The overarching solution to the bullwhip effect is simply for supply chain members to share information and work together.
(34) VerifiedTrue
Typically,a more expensive shipping option is:
(37) VerifiedC
Consider the disaster risk decision tree model.Using the notation from the model,what is the expected monetary value (cost)of choosing two suppliers?
(32) Under the disaster risk decision tree model,which of the following conditions would create the HIGHEST incentive to use MORE suppliers?
(39) In the disaster risk model,as the probability of a super-event (S)increases,the advantage of utilizing multiple suppliers increases.
(35) A grocery store is trying to find a new supplier for carrots.Its three most important supplier criteria are freshness,lot size,and cost,with factor weights of 0.6,0.1,and 0.3,respectively.What would a supplier with ratings of 6,8,and 10 in the three respective categories score as a weighted total?
(37) Unfortunately,not many supply chain metrics exist that can be effectively used to evaluate performance within a company and for its supply chain partners.
(29) Firms often use multiple suppliers for important components to mitigate the risks of total supply disruption.
(35) Which of the following is NOT REQUIRED information to obtain to conduct the factor weighting technique in supplier selection analysis?
(37) Identify the four primary causes of the bullwhip effect and the remedy for each.
(39) Suppose that in month 1,both the retailer and the wholesaler in a supply chain ordered 20,000 units.Then in month 2,the retailer decreases its order size by 1000 units.If the wholesaler then decreases its order size in month 2 by 700 units,which of the following is TRUE?
(41) Which of the following is the prescribed remedy when the bullwhip effect is caused by shortage gaming?
(34) Identify at least four factors in addition to delivery speed (and its impact on holding cost)that may need to be considered when choosing the best mode of shipment.
(28) Which of the following is NOT a remedy for the bullwhip effect?
(32) Which of the following is NOT a potential cause of the bullwhip effect?
(43) The U.S.________ program,designed to stimulate the economy and improve fuel efficiency,produced an unintended bullwhip effect in the automobile industry.
(42) Briefly describe how to conduct the factor weighting approach to supplier evaluation.
(31) A shipment of parts valued at $75,000 needs to be shipped from Tampa,FL,to Chicago,IL.They could be shipped by rail,taking 15 days at a cost of $1,575,or by truck,taking 4 days at a cost of $2,640.The annual holding cost rate for this type of item has been estimated at 22%.What option is more economical?
(40) 
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