#$3$ What is the objective of logistics management? #$5$ What is vertical integration? Give examples of backward and forward integration. #$7$ How does a traditional adversarial relationship with suppliers change when a firm makes a decision to move to a few suppliers? #$11$ Explain how FedEx uses the Internet to meet requirements for quick and accurate delivery. #$11\mathrm{.}3$ Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $$15,000($as shown in the statement below$)$ in adequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve the profit line to $$25,000$ so he an obtain the bank's approval for the loan. $($a$)$ What percentage improvement is needed in a supply chain strategy for profit to improve to $$25,000?$ What is the cost of material with a $$25,000$ profit? $($b$)$ What percentage improvement is needed in a sales strategy for profit to improve to $$25,000?$ What must sales be for profit to improve to $$25,000?($Hint: See example $1$ in book excerpt$).$ #$11\mathrm{.}5$ Baker Mfg$.$ Inc. $($see above Table $11\mathrm{.}9)$ wishes to compare its inventory turnover to those of industry leaders, who have turnover of about $13$ times per year and $8\%$ of their assets invested in inventory. $($a$)$ What is Baker's inventory turnover? $($b$)$ What is Baker's percent of assets committed to inventory? $($c$)$ How does Baker's performance compare to the industry leaders? #$11\mathrm{.}6$ Arrow Distributing Cop. $($See Table $11\mathrm{.}9)$ likes to track inventory by using weeks of supply as well as by inventory turnover. $($a$)$ What is its weeks of supply? $($b$)$ What percent f Arrow's assets are committed to inventory? $($c$)$ What is Arrow's inventory turnover? $($d$)$ Is Arrow's supply chain performance, as measured by these inventory metrics, better than that of Baker in Problems $11\mathrm{.}5?\%$ of Sales $100\%70\%$ Sales Cost of supply chain purchases Other production costs Fixed costs $$250,000175,00030,00030,00015,00012\%12\%$ Profit $6\%$Table $11\mathrm{.}9($use for problems $11\mathrm{.}5$ & $11\mathrm{.}6)$ $$16,500$ $$13,500$ $ $1,000$ $ $8,000$ Arrow Distribution Corp. Net revenue Cost of Sales Inventory Total Assets Baker Mfg$.$ Inc. Net revenue Cost of Sales Inventory Total Assets $$27,500$ $$21,500$ $ $1,250$ $$16,600$