1) [10] In your own words, explain why it makes sense to utilize a responsiveness strategy when faced with high implied uncertainty, and an efficiency" strategy when faced with low implied uncertainty. 2) [10] In your own words, explain the impact of postponement" strategy on "responsiveness" and efficiency" of a firm in the context of push/pull view" of supply chain processes. 3) [10] In your own words, explain the characteristic differences in terms of mentality and approach to decision making between the i) Newsvendor model, ii) read-react strategy, iii) make-to-order, and iv) multi-period inventory models. 4) [30] FashionX is a franchisee of Xquisite, the famous retailer of fashionable clothing. Prior to the winter season, Xquisite offers FashionX the choice of five different colors of a particular sweater design. The sweaters are knit overseas by hand, and because of the lead times involved, FashionX will need to order its assortment in advance of the selling season. As per the contracting terms offered by Xquisite, FashionX also will not be able to cancel, modify, or reorder sweaters during the selling season. Demand for each color during the season is normally distributed with a mean of 500 and a standard deviation of 200. Further, you may assume that the demands for each sweater are independent of those for a different color. Xquisite offers the sweaters to FashionX at the wholesale price of $40 per sweater and FashionX plans to sell each sweater at the retail price of $70 per unit. Xquisite does not accept any returns of unsold inventory. However, FashionX can sell all of the unsold sweaters at the end of the season at the fire-sale price of $20 each. Xquisite delivers orders placed by FashionX in truckloads at a cost of $2,000 per truckload, cost borne by FashionX. a) How many units of each sweater type should FashionX order to maximize its expected profit? b) What is FashionXexpected profit for the whole season? c) Now suppose that truckload capacity is 2,500 total units of sweaters. If FashionX orders more than 2,500 units in, it will have to pay for multiple truckloads (as many as necessary). What now is FashionX' optimal order quantity for each sweater, and the resulting expected profit? d) Suppose now that Xquisite agrees to buy back the unsold sweaters for $25 each, including the return transportation. What now is FashionX'optimal order quantity for each sweater, and the resulting expected profit? [40] Using the following information, calculate all financial metrics relevant to supply chain management. Interpret the calculated financial metrics, and comment on the supply chain structure and approach of the firms in comparison to each other. FIRM 1 FIRM 2 53933 -51089 2844 42 INCOME STATEMENT Revenue Cost of Sales Gross Profit Other Income Distribution Costs Administrative Expenses Operating Profit Venture Profit/Loss Net interest Taxation Net Profit 1,107.60 -732.50 375.1 49 -309.4 -95.6 19.1 2.3 -9.5 -0.1 11.8 - 1814 1072 -148 -849 54 129 45.8 29.9 60.8 136.5 52.9 327.3 10 2.9 62 BALANCE SHEET Cash and Cash Equivalents Inventories Accounts Receivable Other Current Assets Total Current Assets Intangible Assets Property, Plant and Equipment Deferred Tax Financial Assets Investments in Joint Ventures Other Non-Current Assets Total Fixed Assets Total Assets Accounts Payable Short-Term Borrowings Provisions Other Current Liabilities Total Current Liabilities Long-Term Loan Deferred Tax Provisions Financial lease obligations Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities Shareholder's Equity 3082 2430 1406 7766 14684 2874 17900 49 1532 785 6080 29220 43904 8293 2826 360 455.1 591.6 164.4 1.6 2.8 27.2 196 7.7 2.7 6.3 137 6387 17866 10711 135 664 889 5023 17422 35288 8616 153.7 349.7 241.9