Exam 21: Supply Chain Management Analytics

Over the past six months,Wholesale Foods of Fresno has experienced a standard deviation of demand of 600 units.Standard deviation of its orders during that period was 800 units. (a)What is the bullwhip measure for Wholesale Foods of Fresno? (b)If Wholesale Foods of Fresno had made a perfect forecast of demand over the past 6 months and had decided to order 1/6 of that demand each month,what would its bullwhip measure have been?

Typically,a more expensive shipping option is:

A container of ball-bearings valued at $25,000,currently located in Houston,TX,needs to be delivered to the Morton,IL,plant.The standard shipment method takes two days.However,for an additional charge of $500,the container can be sent overnight to arrive one day later.The annual holding cost rate for this type of item has been estimated at 28%.Which option is more economical?

In the disaster risk decision tree model,a(n)________ disrupts all suppliers simultaneously.

Consider a supply chain where a manufacturer sells to a distributor who sells to a wholesaler who sells to a retailer.Last year,the retailer's weekly variance of demand was 4000 units.The weekly variance of orders was 5000; 8000; 12,000; and 17,000 units for the retailer,wholesaler,distributor,and manufacturer,respectively.(Note that the variance of orders equals the variance of demand for that firm's supplier.) (a)Calculate the bullwhip measure for the retailer. (b)Calculate the bullwhip measure for the wholesaler. (c)Calculate the bullwhip measure for the distributor. (d)Calculate the bullwhip measure for the manufacturer. (e)Which firm appears to be contributing the most to the bullwhip effect in this supply chain?

An industrial producer is searching for a supplier for ball bearings.Its three most important supplier criteria are price,quality,and delivery reliability.The firm has decided that quality and delivery reliability should carry the same weight,and that each of them are twice as important as price.If the weights sum to 100%,what would a supplier with ratings of 40,90,and 75 in the three respective categories score as a weighted total?

Walsh Construction is considering two options for its supplier portfolio.Option 1 uses two local suppliers.Each has a "unique-event" risk of 8%,and the probability of a "super-even" that would disable both at the same time is estimated to be 2.5%.Option 2 uses two suppliers located in different countries.Each has a "unique-event" risk of 18%,and the probability of a "super-event" that would disable both at the same time is estimated to be 1.2%. (a)What is the probability that both suppliers will be disrupted using option 1? (b)What is the probability that both suppliers will be disrupted using option 2? (c)Which option would provide the lowest risk of a total shutdown?

Which of the following statements is TRUE regarding the 2011 Tohoku earthquake and tsunami?

Which of the following is NOT REQUIRED information to obtain to conduct the factor weighting technique in supplier selection analysis?

Under the disaster risk decision tree model,which of the following conditions would create the HIGHEST incentive to use FEWER suppliers?

Tommy's Family Furniture is looking for a new supplier for its armchairs.Tommy is primarily interested in only two criterion: price and name brand value.He considers the value of the name brand to be three times more important than price.Tommy has narrowed his choices to two suppliers.On a 10-point scale,he has assigned Amy's Armchairs a score of 8 on price and 5 on name brand value.He has assigned Annie's Armchairs a score of 3 on price and 6 on name brand value.Apply the factor weighting technique to help Tommy choose a new armchair supplier.

Identify the four primary causes of the bullwhip effect and the remedy for each.

What is the formula for the bullwhip measure?

Suppose that a product's value is $1000.The manufacturer experiences a holding cost of 2.5% per month.The firm ships the product across country by truck,and it arrives six days later.The shipping cost is $80 per unit.What is the holding cost on each unit shipped? (Assume 30 days per month.)

The factor weighting model is an attempt to add subjectivity to decision making when selecting among suppliers.