Exam 12: Supply Chain Design

Last year,RJT Enterprises had average inventories (raw materials,work-in-process,and finished goods)of $7.5 million.During this same year the cost of goods sold was $30 million.The company operates 50 weeks per year. a.What is their total inventory (measured as weeks of supply)? b.What is their inventory turnover?

A typical manufacturer spends:

The weeks of supply measure will improve if the weekly sales decrease.

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.Determine the ranges for which each alternative is preferable from a total cost standpoint.

________ seeks to develop a firm's supply chain to meet the competitive priorities of the firm's operations strategy.

Customer clothing and the Boeing 787 Dreamliner aircraft are based on standard designs but component production and manufacture of the final product is ________.

One way to gain control over suppliers in a chain is to buy a controlling interest in them,known as ________.

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.How much cheaper is the Wisconsin alternative when SAGE is indifferent between Oklahoma and England?

A television manufacturer would like to reduce its inventory.To this end,you are asked by the operations manager to assess its inventory level.You have the following information on average inventories from last year's financial statement: Raw materials $1,500,000 Work-in-process $1,200,000 Finished goods $800,000 In addition,the cost of goods sold last year (50 weeks)was $20 million. a.What is its total inventory (measured as weeks of supply)? b.What is its inventory turnover?

Rome Corporation is a supplier of ball bearings.Because of the specialized manufacturing process employed,considerable work-in-process and raw material inventories are created.The current inventory levels are $1,500,000 and $3,775,000,respectively.In addition,finished goods inventory is $3,500,000,and sales (at cost)for the current year are expected to be about $28 million.Assume they operate 50 weeks per year. a.What is their total inventory (measured as weeks of supply)? b.What is their inventory turnover?

Increasing the percentage of on-time deliveries to customers actually reduces the total revenue of a firm.

The VP of Finance studied the printing costs at the university and knew it was time for bold,decisive action.The annual fixed cost of printing at the school was $1,250,000 and the per-page cost was one cent.Fortunately,his brother-in-law happened to own a company that would lease the printers to the university for only $850,000 and charge three cents per page.At what point would the university be indifferent between owning their printers and leasing their printers?

The supply chain management department of a major manufacturer pondered a particularly weighty make or buy decision for weeks,ultimately deciding to make,rather than buy.This decision resulted in increased:

Some discount stores are able to sell items before they have to pay their suppliers,resulting in a negative:

Efficient supply chains use low capacity cushions.

The purpose of supply chain management is to synchronize a firm's processes with those of its suppliers and customers.

The clever wine shop owner held a tasting,accepted customer orders and payments,and then placed an order with the vineyard.Since he paid the vineyard after he received the shipment (and well after he charged his customers),his ________ time was negative.