OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Chapter 11, Problem 6CQ
Summary Introduction
To characterize: The given decision has tactical or strategic.
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Characterize the following decision as either tactical or strategic: Which tier 1 suppliershould be used for a particular component system?a. Tactical b. Strategic
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The questions below refer to the following SAME paragraph:
Suppose a retailer Mojo, holds safety stock for an item to accommodate a 98% service level with uncertain demand. There are two supply options: Supplier X taking 5 days to deliver replenishments, and Supplier Y taking 3 days to replenish. Both suppliers charge the same price for the item.
Ignoring differences in fixed order costs, the retailer should choose:
Group of answer choices
Supplier X
Option Y only if the critical ratio is less than 0.9
Option X only if the critical ratio is greater than 0.9
Supplier Y
Describe the potential pitfalls in relying on factor weighing analysis for supplier selection ?
Chapter 11 Solutions
OPERATIONS MANAGEMENT (LL)-W/ACCESS
Ch. 11 - Prob. 1CQCh. 11 - Prob. 2CQCh. 11 - Prob. 3CQCh. 11 - Prob. 4CQCh. 11 - Prob. 5CQCh. 11 - Prob. 6CQCh. 11 - Prob. 7CQCh. 11 - Prob. 8CQCh. 11 - Prob. 9CQCh. 11 - Prob. 10CQ
Ch. 11 - Prob. 11CQCh. 11 - Prob. 12CQCh. 11 - Prob. 13CQCh. 11 - Over time, consumers have less of a need for a...Ch. 11 - For 10 percent of the products in a category, a...Ch. 11 - Anvils Works requires, on average, 2800 tons of...Ch. 11 - Prob. 3PACh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Rob Honeycutt created Timbuk2 to offer consumers...
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- Under sole-sourcing arrangements, customers involve suppliers from the design stage, asking for larger deliveries of higher quality items in large batches that enable greater savings. True or False?arrow_forwardExplain the potential pitfalls in relying on factor weighing analysis for supplier selection ?arrow_forwardThe item fill rate is categorized as which type of supply chain performance metric? Select one: a. Variety b. Delivery c. Customer service d. Flexibility e. Costarrow_forward
- Payments to suppliers include payments for which of the following? A. Income taxes B. Inventory C. Employee compensation D. All of the above.arrow_forwardSupply chain orientation is process and strategy oriented .Select one:a. False.b. True.arrow_forwardA sourcing strategy is essentially a business case for an organisation to determine an optimal approach to procure resources. AusMed which manufactures medical ventilators, wants to procure a heating tube which is a critical component of humidification equipment. In comparison to the value of the ventilator, the heating tube cost less. Moreover, there are very few suppliers in the world that can supply the heating tubes. Outline the steps involved in the sourcing the heating tube? Discuss what sourcing strategy that AusMed needs to adopt while procuring heating tube?arrow_forward
- Whole Nature Foods sells a gluten-free product for which theannual demand is 5,000 boxes. At the moment, it is paying $6.40 for each box; carrying cost is 25% of the unit cost; order-ing costs are $25. A new supplier has offered to sell the same item for $6.00 if Whole Nature Foods buys at least 3,000 boxesper order. Should the firm stick with the old supplier, or takeadvantage of the new quantity discount?arrow_forwardCisco’s model of building a seamless supply chain is one that many companies can follow. It proves that you do not have to own or control most of the elements in your supply chain, yet have complete visibility of the chain. The Internet allows companies to coordinate more closely with their suppliers and also enables just-in-time delivery that lets businesses greatly reduce inventories. Cisco’s suppliers build and ship while Cisco handles all of financial transactions. This is an excellent instance of control/demand uncertainty fix. Please answer all 3 questions What is your inference about technology in the context? Implement SCOR model and mention the demand and supply uncertainty with the help of diagram. Identify if Cisco is following push strategy or pull strategy and explain how?arrow_forwardGiven the information provided below, what are the procurement, oversight, transportation, order cycle inventory, pipeline inventory costs, and total supply chain costs for using the supplier Ebert, Inc. Ebert manufactures small speakers for automobiles in its factory in the Philippines. The order size is Q= 7,000 units and the supply chain operates 300 days a year. Do not round intermediate calculations. Round your answers to the nearest dollar. CertifiedSupplier AnnualDemand (D) Price perUnit (P) OversightCost perUnit (O) Transport Costper Unit (Ct ) Order Cost(Co ) Cost toStore OneUnit OneYear (Ch ) Order LeadTime inDays (L) Elbert, Inc. 224,000 $6.99 $0.22 $2.38 $140 $5.39 55 Procurement cost: $ Oversight cost: $ Transportation cost: $ Order cycle cost: $ Inventory holding cost: $ Pipeline invenory cost: $ Total supply chain costs: $arrow_forward
- System design refers to: Select one: a. New product fit in existing organisation processes b. Review of target market requirements c. All of these d. Detailed design specifications e. Design match to strategy Order winners are goods or services that customers Select one: a. Consider buying b. Can afford to buy c. Actually buy d. Lay-bye Supply side of the supply chain is referred to as Select one: a. None of these b. Downstream c. Upstream d. Forward integration e. Vertical integrationarrow_forwardIn each of the following, name the term defined. Answersare listed at the bottom.1. This refers to how common an item is or how many substitutes might be available.2. When a customer allows the supplier to manage inventory policy for an item or group of items.3. A phenomenon characterized by increased variation in order as we move from the customer to the manufacturer in the supply chain.4. Products that satisfy basic needs and do not change much over time.5. Products with short life cycles and typically high-profit margins.arrow_forward. All the following behaviours are possible obstacles to supply chain coordination, except _____a) Each stage of the supply chain views its actions locally and is unable to see the impact ofits actions on other stagesb) Different stages of the supply chain react to the current local situation rather than trying toidentify the root causesc) Based on local analysis, different stages of the supply chain blame each other for thefluctuations, with successive stages in the supply chain becoming enemies rather thanpartnersd) None of the abovearrow_forward
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