Questions and Answers of Supply Chain Management A Logistics

3 What are the pros and cons of locating materials handling operations such as labelling and packing in a distribution centre, as opposed to in the factory? Nike has a central customer service centre
2 What are the reasons to start satellite centres when a company such as Nike has a centralised distribution centre? Nike has a central customer service centre (distribution centre) located at
1 What are the reasons for a company, such as Nike, with a centralised distribution centre to ship some products directly to customers, not through the distribution centre?Nike has a central customer
Focused factories have an impact on the important trade-off between cost and delivery lead time. Make a list of the advantages and disadvantages of focused factories. One example of each has been
The international logistics pipeline, shown in Figure 4.3, is made up of the same basic elements as any other pipeline. However, this pipeline has a number of special characteristics. Use Table 4.3
1 What are the pros and cons of sourcing commodity items in low wage economies? The subject of air miles appears regularly in media headlines today. Here are two contrasting views of what is
1 Suggest how global and regional supply chain groups work together. Our confectionery business is organised into four business segments which we call regions, and six global functions, as depicted
1 Comment on Glup’s plans to create engineered costs from the perceived benefits of the new material-handling equipment. Glup SA supplies a range of household soaps to supermarkets in northern
1 What can we tell from the above analysis in Table 3.3 and the average DPPs per customer?(Consider in particular the differences in DPP between the four orders shown, and between the three customers
What happens to the break-even point if:2 The sales price reduces by 5 per cent?Bond SA is planning to manufacture a new product with an initial sales forecast of 3,600 units in the first year at a
What happens to the break-even point if:1 Fixed costs increase by 10 per cent?Bond SA is planning to manufacture a new product with an initial sales forecast of 3,600 units in the first year at a
2 What are the implications for logistics strategy?
1 Review the categories in Figure 3.1 and compile your own list of the way in which these categories can be influenced (made better or worse) in an organisation.
3 What are the opportunities and threats facing suppliers as a result of the likely changes to Global’s quality of service priorities? This case study contains information on how Global’s
2 How will Global’s own customer service priorities change as a result of this? This case study contains information on how Global’s expectations of quality of service from its suppliers evolved
1 What actions do you think Global could take to respond to the needs of its customers? This case study contains information on how Global’s expectations of quality of service from its suppliers
2 As a competitor to Everglo, what would be your options in response to Everglo’s latest moves? Everglo Battery, the premier battery manufacturer and service provider in South Africa, looked back
1 Has Everglo reached the end of the line in terms of its quality of service strategy? Everglo Battery, the premier battery manufacturer and service provider in South Africa, looked back on the
Evaluate Treacy and Wiersema’s value disciplines based on Porter’s views on differentiating strategies(section 1.4.3).
1 When IKEA was founded 60 years ago by Ingmar Kamprad, he realised that customers did not mind queuing, collecting their purchases and assembling the furniture themselves as long as the price was
4 What actions are needed to straighten out the ‘matrix twist’?CleanCo is a Polish manufacturer of cleaning products that serves the European grocery retailing market. CleanCo currently segments
3 What has caused the ‘matrix twist’ between CleanCo and its retail customers?CleanCo is a Polish manufacturer of cleaning products that serves the European grocery retailing market. CleanCo
2 Characterise the changes using the concept of order winners and qualifiers Tom Cross took over as Managing Director at Powerdrive Motors in South Africa three years ago. At the time, the company
1 Evaluate the changes that took place in the segmentation of Powerdrive’s market.Tom Cross took over as Managing Director at Powerdrive Motors in South Africa three years ago. At the time, the
1 List the logistics challenges of mounting promotions and events at a retailer such as BTC. If consumers only purchased their requirements in line with their use, then it would be relatively easy to
2 To what extent is there alignment of strategy in the supply chains for these two products?
1 Using the concepts from this section, analyse the supply chain support for both of the products you analysed in Activity 1.3. What should the supply chain be (functional-efficient or
3 What impact on customer service was this mismatch likely to cause?Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down vehicles, providing a roadside repair and recovery
2 What were the order winners and order qualifiers at the component supplier?Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down vehicles, providing a roadside repair and
1 What were the order winners and order qualifiers at TA?Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down vehicles, providing a roadside repair and recovery service. Two of
Select the top two product lines (in terms of sales) for your firm or one that you know well. Using the headings in Table 1.1, fill in the details for characteristics of both product lines. Aim to
1 What are the key lessons from this case for dealing effectively with disruptions to the supply chain? In March, 2000, a thunderstorm struck the Philips semiconductor plant at Albuquerque in New
3 If separate parts of the PressCo factory were dedicated to production for WestCo and for EastCo, which would be the more efficient in terms of labour costs and inventory holding? A problem that is
2 What steps will the supplier need to take in order to satisfy call-off orders from WestCo? A problem that is all too familiar to suppliers in the automotive industry is that of schedule
1 What are the logistics implications to PressCo for delivery reliability to customers WestCo and EastCo? A problem that is all too familiar to suppliers in the automotive industry is that of
Write a brief (200 words) appraisal of material and information flow in the supply network affecting one of the major products in the response you gave in Activity 1.1. Perhaps the current situation
1 How did inventory reduction in the supply chain lead to improved competitiveness at Xerox? Once the problems of introducing ‘just-in-time’ production systems had been solved at the Xerox plant
2 What do you think are the main logistics challenges in running the Tesco operation? Tesco is the UK’s largest food retailer, with a sales turnover of more than €67.5 billion.While it has some
1 Describe the key logistics processes at Tesco. Tesco is the UK’s largest food retailer, with a sales turnover of more than €67.5 billion.While it has some 638 stores in central Europe, and some
● What different ways in which supply chains may choose to compete in the marketplace
8. Why are quality suppliers important to a firm? Why is this even more true in a JIT environment?
7. In the chapter it stated that the majority of a firm's relationships would be arm's length. Why do you think this would be the case?
6. Why is it necessary for two firms to each have strong drivers if they are considering forming a partnership?
5. Why is cost measurement an important activity for purchasing management?
4. What are the major advantages of just-in-time purchasing? What are the possible difficulties in implementing a JIT system?
3. Explain the concept of forward buying and its relationship to total cost trade-off analysis.
2. What are some of the reasons that purchasing is taking on a more strategic role in organizations?
1. Explain why supplier selection and evaluation is frequently considered the most important activity in the purchasing function.
6. What are some of the key trends and their implications in warehousing automation and computerization?
5. What marketing and logistics conflicts might occur in consumer goods packaging decisions? Use trade-off analysis to show how those conflicts might be analyzed and resolved.
4. Packaging serves two basic functions: marketing and logistics. Identify the role of packaging in each of these functions.
3. Discuss the relationship between warehousing and JIT.
2. What are some potential pitfalls of automated materials handling? How do they affect the growth of automation in warehousing?
1. Compare the advantages and benefits of automated materials handling systems with those of manual systems.
9. Discuss the reasoning behind the following statement: "Financial control of warehousing is closely tied to logistics productivity and corporate profitability."
8. Productivity has been defined as the ratio of real output to real input. In terms of the warehousing function, how could a firm measure the productivity level of its storage facilities?
7. How can layout and design affect warehouse efficiency and productivity?
6. What are the differences between the following types of facility location strategies: (a) market positioned, (b) production positioned, and (c) intermediately positioned?
5. Identify and describe some of the more important factors that affect the specific size of a firm's warehouse or warehouses.
4. What are the three basic functions of warehousing? Briefly describe each.
3. What is meant by a cost trade-off analysis within the context of warehousing? Give two examples of the cost trade-offs involved in a firm's decision to use a combination of public and private
2. What are the differences between private and public warehousing? What are the advantages and disadvantages of each type?
1. Warehousing is used for the storage of inventories during all phases of the logistics process. Since inventory carrying costs can be so high, why is it necessary for a firm to store inventories of
10. Private carriage should not be viewed strictly as a transportation decision—it also is a financial decision. Briefly explain the reasons that underlie this statement.
9. In the evaluation of transportation modes, consistency of service is significantly more important to shippers than time-in-transit. What is the difference between the two terms? Identify some
8. Most transportation executives believe that service factors are generally more important than cost factors in causing firms to switch from one transport mode to another. Under what circumstances
7. How has the deregulation of transportation affected carrier pricing?
6. What is the difference between cost-of-service and value-of-service pricing in transportation? How does each affect the rates charged by carriers?
5. Identify the three types of for-hire transportation carriers. Briefly define and describe the characteristics of each. Identify the impact, if any, that deregulation has had on each of them.
4. Trailer-on-flatcar (TOFC) and container-on-flatcar (COFC) intermodal combinations are referred to as piggyback movements. Describe piggyback movements from the perspectives of cost, service, and
3. Discuss the role and functions of brokers in the transportation system.
2. Briefly discuss the five transport modes, based on their economic and service characteristics.
1. What are time utility and place utility? How does the transportation function add utility to products?
5. MRP and DRP are computer systems in materials management and manufacturing.Describe the types of situations where MRP and DRP can be effectively and/or efficiently used in a firm.
4. Briefly discuss how forecasting can be used in materials management. Identify the general uses according to the (a) type of forecast and (b) the time frame of the forecast.
3. Discuss the role of suppliers in a JIT system. Identify areas where potential conflicts may occur.
2. Briefly describe the concept of just-in-time (JIT) and its relationship to logistics.
1. How does total quality management (TQM) differ from traditional management?How can TQM be applied to logistics?
10. Describe ABC analysis of inventory, and how it can be used to improve inventory management.
9. What are some of the key symptoms of poor inventory management?
8. Calculate the inventory carrying cost percentage for XYZ Company, given the following information:• Finished goods inventory is $26 million, valued at full manufactured cost.• Based on the
7. Describe the circumstances under which inventory carrying costs can vary within a given manufacturing company. Explain why total inventory carrying costs decrease, but at an ever-slower rate, as
6. What problems do you foresee in gathering the cost information required to calculate a company's inventory carrying costs?
5. What is the difference between the transportation cost component of logistics cost trade-off analysis and the transportation cost included in the inventory valuation (cash value)?
4. How would you determine the cash value of a manufacturer's finished goods inventory investment? How would this differ for a wholesaler or retailer?
3. How would you determine the cost of capital to be used in inventory decisions?
2. Many businesspeople rely on industry averages or textbook percentages for the inventory carrying cost that they use when setting inventory levels. Why is this approach wrong?
1. Explain how excessive inventories can erode corporate profitability.
10. As a member of the inventory planning team for Cook Department Stores, one of your primary responsibilities is to aid department managers with inventory decisions.The electronics department
9. What is the cost saving to the customer resulting from a manufacturer's ability to reduce variability by two days, given the following information:a. Average sales of 40 cases per day.b. Purchase
8. Given your calculations in questions 6 and 7, what will the actual fill rate be if management is willing to hold inventory equal to one week's sales as safety stock?
7. Recalculate your answer to question 6 given the following sample of replenishment cycles:Replenishment Lead Time Cycle in Days Replenishment Cycle Lead Time in Days 110 10 92 12 11 83 11 12 10 410
6. Calculate the economic order quantity, the safety stock, and the average inventory necessary to achieve a 98 percent customer service level, given the following information:a. The average daily
5. Explain the basic differences between a fixed order point, fixed order quantity model, and a fixed order interval inventory model. Which is likely to lead to the largest inventory levels? Why?
4. One of the product lines carried by Farha Wholesale Foods was a line of canned fruit manufactured by California Canners. Mr. Jones, the canned goods buyer, knew that the company did not reorder
3. How does the economic order quantity model mathematically select the most economical order quantity?
2. How does uncertainty in demand and lead time affect inventory levels?
1. Why is inventory so important to the efficient and effective management of a firm?
9. Identify areas of logistics that use expert systems (ES) and artificial intelligence (AI)to improve efficiency and effectiveness.
8. Briefly describe the role of decision support systems in logistics decision making.

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