Exam 12: Supply Chain Design

Scenario 12.2 SAGE Inc.receives too many applications each year for the Global MBA program so they turn to their network of partners for assistance.Nothing in this world is free,of course,so their partners provide quotes that include a per student cost as well as a facilities cost that SAGE would pay regardless of the number of students they sent there.The costs in Rupees (₹)are elegantly summarized in the table below. -Use Scenario 12.2 to answer the question.What is the lowest variable cost that causes the Wisconsin option to never be the optimal location?

Scenario 12.2 SAGE Inc.receives too many applications each year for the Global MBA program so they turn to their network of partners for assistance.Nothing in this world is free,of course,so their partners provide quotes that include a per student cost as well as a facilities cost that SAGE would pay regardless of the number of students they sent there.The costs in Rupees (₹)are elegantly summarized in the table below. -Use Scenario 12.2 to answer the question.At what volume of students does Wisconsin become preferred over an Oklahoma choice?

Supply chain design for a service provider is driven primarily by the need to control the materials it consumes as it delivers its various services.

Scenario 12.1 You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit.You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year.The following table summarizes the details of this make versus buy decision. -Use Scenario 12.1 to answer the question.What does the company save for the year by selecting the low-cost option at an annual requirement of 40,000 units?

A firm may choose to use members of the distribution channel as if they were assembly stations in the factory.Such an approach is known as:

Supply chain management tries to match the flow of materials,services and information with demand.

What's the difference between postponement and channel assembly? Provide examples of both.

Padco averages $15 million worth of inventory in all of its worldwide locations.They operate 51 weeks a year and each week average $3 million in sales (at cost).Their inventory turnover is:

Weeks of inventory and inventory turns are reflected in:

When a company uses ________,it is moving upstream in the supply chain toward the source of raw materials.

Which of the following is NOT identified in the text as a competitive advantage of a mass customization strategy?

In ________,the product is built to customer specifications from a stock of existing components.

A U.S.company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost.This is an example of:

Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit.Because of the specialized manufacturing process employed,considerable work-in-process and raw material inventories are created.The average inventory levels are $1,152,000 and $2,725,000,respectively.In addition,finished goods inventory is $3,225,000,and sales (at cost)for the current year are expected to be about $24 million.The inventory turnover that Henderson Corporation is currently expecting is:

Selling expenses,fixed expenses and depreciation are all considered operating expenses.

Figure 10-1 This figure represents the impact of supply chain performance on total costs. -Refer to Figure 10-1.Which is the best statement if a company simultaneously moves from point A to point B and from point D to point C?

________ is a concept whereby some of the final activities in the provision of a service or product are delayed until the orders are received.

Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.

________ uses a firm's flexible processes to generate a wide variety of personalized services or products at reasonably low costs.

The fundamental purpose of supply chain design for a manufacturer is to control inventories by managing the flow of materials.