Operations Management
Operations Management
11th Edition
ISBN: 9780133148787
Author: HEIZER
Publisher: PEARSON
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Chapter 16, Problem 7DQ

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7. How does TPS contribute to competitive advantage?

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Question No 2: Parker Hi-Fi Systems, located in Wellesley, Massachusetts, a Boston suburb, assembles and sells the very finest home theater systems. The systems are assembled with components from the best manufacturers worldwide. Although most of the components are procured from wholesalers on the East Coast, some critical items, such as LCD screens, come directly from their manufacturer. For instance, the LCD screens are shipped via air from Foxy, Ltd., in Taiwan, to Boston’s Logan airport, and the top-of-the-line speakers are purchased from the world-renowned U.S. manufacturer Boss. Parker’s purchasing agent, Raktim Pal, submits an order release for LCD screens once every 4 weeks. The company’s annual requirements total 500 units (2 per working day), and Parker’s per unit cost is $1,500. (Because of Parker’s relatively low volume and the quality focus—rather than volume focus— of many of Parker’s suppliers, Parker is seldom able to obtain quantity discounts.) Because Foxy promises…
Question2. Describe the options that McDonald’s and its suppliers can pursue to overcome the challenges of French Fries Supply Chain.
QUESTION 1 Which of the following statements regarding foreast sharing game is INCORRECT?     Retailer only faces underage risk.     Supplier faces both underage and overage risks.     Suppliers tend to produce less than the supply chain optimal quantity.     The retailer has to purchase at least the quantity it reports to the supplier.   QUESTION 2 Assume that the firm can source from 2 faraway suppliers (each has Lead time = 4 months, capacity=60 k) and 2 Closeby suppliers (each Lead time =0 month, capacity=40k). The sales season starts in May. Which of the following statements regarding sourcing is INCORRECT?     The production change should be only applied to the Closeby supplier so that the firm can benefit from the change in time.     The production at the Faraway supplier should start in January and the production at Close-by supplier should start in May.     The firm should source from a combination of one faraway supplier and one close-by…
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