Exam III Supply Chain Management Fall 2023
pdf
keyboard_arrow_up
School
Georgia Institute Of Technology *
*We aren’t endorsed by this school
Course
8803
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
Pages
34
Uploaded by JusticeBraveryFish26
Exam III Supply Chain Management (Counts 15% of Course Grade)
•
Time Limit
160 Minutes Instructions NOTE: Students are NOT allowed to copy or screen print questions/problems on this exam. You will be allowed an opportunity to review your exam after the final exam period has closed. Due: October 30, 2023 This EXAM may be taken during the exam period and
will require up to 160 minutes of uninterrupted time. Exam IV covers the Supply Chain module. "Theory" questions are either Multiple Choice, Matching, or True/False. Questions that require calculations to solve are also multiple choice with five potential answers provided. Formulas for the Newsvendor model, EOQ, ROP, and for 4 error metrics are provided in the exam. There will be no credit for "work" or partially correct answers. Answers were determined using Microsoft Excel. There may be very minor differences between your answer and the correct answer listed in the choice options simply due to differences in rounding. Pick the answer that closest approximates your answer if there is not an exact match. Unless otherwise noted (for an example a problem where the solution is a percentage) round numeric answers to the nearest whole integer. For solutions that are percentages round to the nearest 1/100th of a percent (.00%). The exam does not start until you have concluded the proctoring initialization process. Once the exam is visible, you will have exactly 160 minutes to complete it. This process cannot be "paused" so please remember that once you start, 160 minutes later the exam will automatically close and no further entries will be permitted. Once you begin scrolling through the exam, the exam timer will no longer be visible without scrolling back to the top of the page. For this reason, it is suggested that you keep a clock or timer nearby and keep a close eye on it. Given the length of the exam you are allowed two 5-minute bathroom breaks and are allowed to have food and drinks (on camera while taking the exam). However once the timer begins on the exam it does not stop Maximum Points That Can Be Earned Is 107 Points Good Luck
Proctoring Proctoring Rules
: For this exam, you may use any physical calculator and/or Microsoft Excel (or equivalent) No other windows or programs should be open. Additionally, •
You may not use books, notes, formula or "cheat" sheets. Supply Chain Management Formulas will
be provided for you in the exam •
You may have blank scratch paper to write on during the exam. Before answering your first question, please hold up all blank sheets of paper, slowly showing both sides. •
You may have earbuds for the microphone function (one of the requirements of proctoring) or for listening to music, but if listening to music, the source device must remain out of reach. If you have any issues during the exam, contact Honorlock
directly by sending an email to support@honorlock.com or call 1-844-243-2500. Support is available 24 / 7 / 365. Additionally, within the exam you will see "24/7 Proctoring Support" options to the right, one of which is Live Chat.
This quiz is no longer available as the course has been concluded. Attempt History Attempt Time Score Regraded LATEST Attempt 1
101 minutes 102.33 out of 107 102.33 out of 107 Correct answers are no longer available. Score for this quiz: 102.33
out of 107 Submitted Oct 29, 2023 at 1:12pm This attempt took 101 minutes. Question 1
2 / 2 pts
Supply Chain Management Questions
A Responsive Supply Chain focuses on all but: deploying excess capacity aggressively reducing lead times high asset utilization deploying significant safety and buffer stocks responding to unpredictable demand Source: Supply Chain Week 1, slide 27 Partial
Question 2
1.33 / 2 pts
Short-term supply chain decisions consist of (select all that apply): Quality Control Sales & Operation Planning Supplier Evaluation Product Scheduling
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Network Configuration Source: Supply Chain Management Week 7 Lecture: Types of Decisions, Slides 18-
21 and corresponding lecture notes Question 3
2 / 2 pts
Which is NOT a reason companies keep inventories? To hedge against uncertain supply To economize on order costs For smoothing production schedules To economize on holding costs To hedge against uncertain demand Source: Supply Chain Week 2, slide 27; Question 4
6 / 6 pts
Match the characteristics/benefit to either Push or a Pull approach to production scheduling Eliminates WIP accumulating at bottlenecks Pull
Keeps materials busy, not operators Pull
Every worker maximizes their own output
Push
If a problem arises there is no slack in the system Pull
Kanban cards Pull
More difficult to respond to special orders and order changes Push
Source: Supply Chain Week 2, Slides 12 & 13 Question 5
2 / 2 pts
What is the
key consideration in setting the reorder point? You don’t want on hand inventory to be depleted before the replenishment order arrives.
You want to reorder as few times as possible You want the time between orders to be minimal. You want to minimize cost You want to minimize physical storage requirements Source: Supply Chain Week 2, Slide 39 & 40 Question 6
2 / 2 pts
Economic Order Quantity establishes: the maximum quantity of items an organization would want to purchase at one time to satisfy a month's demand the quantity of items an organization should order each time to minimize costs associated with ordering the quantity of items an organization can order in bulk to receive a discount the quantity of items an organization would have to order each time to minimize holding costs the quantity of items an organization would have to order each time to minimize total inventory costs Source: Supply Chain Week 2, Slide 37 Question 7
2 / 2 pts
At what quantity does the basic economic order quantity occur? At the time interval that minimizes total cost Where ordering cost equals holding cost Where unit cost is a minimum
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Typically, 2-3 distribution centers At the greatest quantity discount Source: Supply Chain Week 2, Slide 37 Question 8
2 / 2 pts
(True/False).
For non-perishable goods, holding costs are the cost that are most directly associated with being overstocked. True False Source: Supply Chain Week 2, Slide 34 Question 9
2 / 2 pts
(True/False).
As long as price (p), cost (c), and salvage value remain constant, the profit maximizing service level determined by the Newsvendor model will not change -- regardless of any significant changes in product demand. True False Source: Supply Chain Week 3, Slide 14 Question 10
2 / 2 pts
US Razors is a small retail chain that specializes in selling classic (wet) shaving equipment: straight razors, safety razors, blades, creams, soaps, and after-shave. The chain is especially known for its selection of high-end shaving brushes with the Parker
BHST Silver Tip Badger being its most popular and highest-margin product. In fact, customers looking to buy the Parker brush will not accept substitutes, and customers that buy the brush will almost always purchase the Parker shaving mug and specialty shaving cream. Based on class discussion (video conferences) what should be the most important criteria in determining a service level for the Parker brush? profit maximization in stock rate fulfillment rate cost minimization Source: Conference Call Incorrect
Question 11
0 / 2 pts
Which of the following are ways that supply chains try to reduce the impact of the bullwhip effect? Reduce incentives to order in large batches or lots Stop promotions Better information sharing Get rid of Discounts
Smooth production so variations are smaller Source: Supply Chain Week 3, Slide 6 Question 12
2 / 2 pts
Which of the following are characteristics of forecasts? (choose all that apply) They are more accurate for shorter periods of time They are more accurate for longer periods of time They are more accurate for groups or families of items They are less accurate for groups or families of items They are almost always wrong They are not usually wrong Source: Supply Chain Week 3, Slide 27 Question 13
2 / 2 pts
________ is a measure of how often the forecast is above or below actual demand Trend
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Tendancy Mean Forecast Error Mean Absolute Error Tracking Signal Source: Supply Chain Week 3, Slide 65 Question 14
2 / 2 pts
(True/False) For exponential smoothing, if the alpha value is low, there will be a higher sensitivity to differences in the recent actual and forecasted data. True False Source: Supply Chain Week 3, Slide 55 Question 15
2 / 2 pts
Let’s say you work for a company that makes prepared breakfast cereals like cornflakes. Your company is planning to introduce a new hot breakfast product made from whole grains that would require some special preparation by the consumer. This would be a completely new product for the company, unlike other products sold by the company or its competitors. What type of forecasting technique would best fit this scenario if marketing is attempting to predict annual product sales?
Qualitative Quantitative Source: Supply Chain Week 3, Slide 34 Question 16
2 / 2 pts
Which type of ordering system (or method) would you expect an operator to use to restock a Coca-Cola kiosk? EOQ/ROP Newsvendor model Order Up to Kanban Source: Conference Call Question 17
2 / 2 pts
Ranch's Candies operates 50 candy stores generally distributed in 7 Southern USA states. The stores operate out of mall locations and currently carry their own inventory of products. Each store keeps a three-week supply of each candy product they sell. Some of these products are "fast movers" like Sour Patch Kids, Gummies, and Skittles, while others are slow movers like Boston Baked Beans and Riley's Chocolate Covered Raisins. The sales price of each product sold is set to be $1.50 higher than the product's cost to Ranch. So although products will have different costs and prices, the margin on each product is the same. The slow-moving products will often be left unsold after the product expiration date, requiring the store manager to cut the retail price in half to move it off the shelves. The prices of fast-moving products are never
reduced. The current store policy to is have a 90% customer service level across all product categories. Using the logic of the Newsvendor model, Ranch's Candies should: stop selling all the slow moving products lower the service level of the slow movers relative to the fast moving products raise the service level of the slow moving products relative to the fast moving products keep the service at 90% across all product categories permanently reduce the prices of all of the slow moving products Question 18
2 / 2 pts
Which one of the following time series forecasting methods predicts the future based on the most recent demand observation modified by the error for the latest forecast Simple Moving Average Weighted Moving Average Exponential Smoothing Linear Regression Analysis
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Sum of Least Squares Source: Supply Chain Week 3, slide 53 Question 19
2 / 2 pts
Which ONE of the following is NOT a characterization of the Matsushita business evolution (history) and supply chain philosophy/strategy? a key issue for Matsushita management was the inability to effectively innovate and drive new products to market the founder, Konosuke Matsushita, developed a 250-year corporate plan. the supply chain very early on adopted a decentralized network strategy the firm has a strategy of one product, one division with each division paying 60% if its earnings back to Matsushita "headquarters". Matsushita rebranded itself as Panasonic Bogus Question: all of the above are true statements Bogus Question: all of the above are false statements Question 20
2 / 2 pts
Which of the Following is a Characteristic of the Philips business evolution (history) and supply chain philosophy. Check all that apply. Within Philips a very strong Products Division centralized all R&D while product manufacturing was either highly decentralized or outsourced to third parties Philips was initially known for its innovative products Philips built its competitive advantage in lighting products based on it very low cost of production Philips decentralized very early in its history because the founders two sons, who were running the firm, did not like each other Philips' supply chain network strategy can best be described as decentralized Question 21
2 / 2 pts
GymCroc is a fitness apparel merchandising company with a supply chain that focuses on optimizing utilization from its manufacturing facilities and selects suppliers that are primarily based in lower-income countries. Based solely on the information above, what type of operating model is GymCroc following? Efficient-dominant Supply Chain Responsive-dominant Supply Chain Quality-dominant Supply Chain
Sales-dominant Supply Chain Source: Supply Chain Management Week 7 Lecture: Responsive vs. Efficient, Slides 26-27 and corresponding lecture notes Question 22
2 / 2 pts
What is the core philosophy behind Lean? Elimination of employees Elimination of waste Elimination of inventory All of the above Source: Supply Chain Management Week 8 Lecture: Lean Operations, Slides 2-3 and corresponding lecture notes Incorrect
Question 23
0 / 2 pts
Pistachily is a popular pistachio milk manufacturer. Pistachio-
derived “milk” has taken off as a new alternative dairy-free beverage that consumers love. As a result, Pistachily has demand that is much higher than the current supply capacity. They have hired you as a supply chain strategy consultant to address their supply-demand mismatch. What are your possible recommendations? Hire more manufacturing workers Increase the product price point to align quantity demanded with quantity supplied
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Sign a supply contract with a contract manufacturing company with relevant capabilities Improve the manufacturing process to increase productivity and minimize waste Turn down purchase orders All of the above Source: Supply Chain Management Week 8 Lecture: Sales & Operations Planning, Slides 20-21 and corresponding lecture notes Question 24
2 / 2 pts
Paperclips is a popular office stationery retail company. It is in a fast-moving consumer product market. One of its core competencies is to create custom products based on the preferences of its consumer cohorts. It would also like to keep shipping times short. There are other factors that will inform the final decision, but based solely on the information above, what is the best manufacturing & distribution network configuration for Paperclips? Centralized Decentralized Either centralized or decentralized will work Source: Supply Chain Management Week 7 Lecture: Network Configuration, Slides 39-
41 and corresponding lecture notes Supply Chain Management Formulas
The Newsvendor Model:
The Critical Fractal = C
u
/(C
u
+ C
o
)
C
u
= p - c
C
o
= c - s
Converting a Critical Fractal to a order Quantity; Look up or calculate
the z score. Multiply the z score times the standard deviation, then add the total to the mean of the distribution. Note if a z score is negative you will be adding a negative number to a positive number. Economic Order Quantity, Reorder Point, and Order Up to
EOQ (Q*) = SQRT((2*d*s)/h), where d = demand, s = order costs, and h = holding costs
ROP = (d
(LT)
* LT) + safety stock, where d
(LT) =
demand during the lead time, and LT = Lead Time
Safety Stock = z * SD * SQRT(LT), where z = z score, SD = the standard deviation, and LT = Lead Time
Order Up to levels Assuming a Normal Distribution = NORMINV function in excel
Exponential Smoothing
F (t+1)
= F
(t)
+ smoothing constant*(A
(t)
-F
(t)
)
Measures of Forecast Error:
Running Some of Forecast Error (RSFE) = SUM (At - Ft)
Mean Forecast Error (Bias) (MFE) = RSFE/N
Mean Absolute Deviation (MAD) = (SUM of the Absolute Value (At - Ft))/N
Tracking Signal (TS) = RSFE/MAD
Measures of Forecast Error (Pasted Formulas)
Z Table For Normal Distribution
Question 25
3 / 3 pts
The Annie's Card Shoppe stocks Mother's Day cards for a limited time each Spring. The store charges $7.69 for each card sold. Immediately after Mother's Day, the cards are sold to a discounter for $1.35 per card. Annie's is committed to a 95% service level on all products sold. What is the implied cost target Annie's must hit from its suppliers that justifies the 95% fill rate for the Mother's Day cards? HINT: Consider the Newsvendor model since this product is seasonal. This Problem Counts 3 Points
$3.59 $1.56
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
$1.67 $.40 $2.95 Question 26
3 / 3 pts
Charlotte sells replica statues of the famous David sculpture in Florence, Italy. When ordering more from her Chinese manufacturer, she has to pay a $28 fee. She notices demand is constant at 100 units a month. Due to taxes and regulations, she has determined it costs her $.50 per unit per year to hold these statues in inventory. She wants to balance the costs of carrying the replicas with the cost of ordering more. How many should she order each time from the Chinese manufacturer? This Problem Counts 3 Points
25 367 150 201 380
347 Question 27
2 / 2 pts
Each year the Georgia Tech Young Alumni Association ("GTYAA") sells T-Shirts prior to and during the annual Georgia Tech Pi Mile Road Race. This next year will be the 35th consecutive year that the GTYAA has done this and over the years (and by careful record keeping) the GTYAA has determined that T-Shirt demand follows a discrete distribution pattern
, summarized in the table below. HINT: Note that the probabilities add up to 100%, and although this is not normally distributed demand, the same over/under logic of the Newsvendor model can apply here.
Demand Probability Cumulative Probability 300 .05 .05 400 .10 .15 500 .40 .55 600 .30 .85 700 .10 .95 800 .05 1.00 Note that T-Shirts can only be ordered in lot sizes rounded up to the nearest 100. The T-Shirts cost GTYAA $8 each and are sold on race day for $35. GTYAA buys their T-
Shirts from a local supplier who screen prints the T-Shirts to GTYAA's specifications. Any unsold shirt is sold for $5 within a day or so after the race. Assuming GTYAA wants to maximize their profits from the sale of these T-Shirts, how many should the association order from the supplier? This Problem Counts 2 Points
300 400
500 600 700 800 Question 28
3 / 3 pts
Consider the following actual demand and forecast data for ARX AG a national distributor of commercial blends and custom formulated fertilizers for traditional and organic crop nutrition needs. All data is in tons. Month Forecast Actual Demand 1 1900 1890 2 1892 1840 3 1850 1838 4 1840 1831 5 1833 1830 6 1831 1800 7 1806 1780 8 1785 1740 9 1749 1765
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
10 11 12 Develop a forecast for month 10 using exponential smoothing with a smoothing constant of .8. Note that the initial forecast of 1900 was not derived using exponential smoothing. Select the answer that best matches yours. Check Sum: Forcast: 16486; Actual Demand: 16314; This Problem Counts 3 Points
1750 1773 1762 1735 1780 Question 29
2 / 2 pts
This Problem Counts 2 Points
Continuing with ARX AG what is the Mean Absolute Deviation of the Forecast? Note that the initial forecast of 1900 was not derived using exponential smoothing. If your answer does not exactly match an answer, choose the answer closest to yours.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
24.25 23.89 22.75 25.08 25.92 Question 30
2 / 2 pts
This Problem Counts 2 Points
Continuing with ARX AG, what is the Tracking Signal for forecast? Note that the initial forecast of 1900 was not derived using exponential smoothing. If your answer does not exactly match an answer, choose the answer closest to yours. 9.82 -9.82 8.00 -8.00
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
-6.68 6.68 0 Question 31
1 / 1 pts
Continuing with ARX AG and using the Tracking Signal you should have
calculated for the forecast, answer the following question as either True or False. The exponential smoothing model used to forecast fertilizer demand results in forecasts that fall within a generally acceptable range of forecasting error. The Question Counts 1 Point
True False Question 32
Original Score: 3 / 3 pts Regraded Score: 3 / 3 pts
This question has been regraded.
This Problem Counts 3 Points
Consider the following actual demand and forecasted demand for Ronesta All-Steel Yoyos. Two forecasts were developed, one forecast using a 3 Month Moving Average and the other forecast using exponential smoothing. For the Exponential Smoothing forecast, the forecast analyst used the average for the first three months as the starting point and the exponential smoothing model for the remaining forecast. Based on the MAD for each forecast, which method appears to have resulted in the best forecast?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Month Actual Demand 3-Month Moving Average Forecast Exponential Smoothing Forecast January 110 February 130 March 150 April 170 130 130 May 160 150 142 June 180 160 147 July 140 170 157 August 130 160 152 September 160 150 142 Check Sum: Actual Demand: 1330; 3-Month Moving Average: 920; Exponential Smoothing: 870; 3-Month Moving Average Exponential Smoothing Both forecast have the same MAD Question 33
5 / 5 pts
ICON Candies is a three-store retailer of freshly boxed chocolate candies serving the greater NYC metropolitan area. ICON orders its chocolate candies directly from a candy maker in Belgium and has a central refrigerated warehouse where the firm stores individual candies shipped directly to Newark (by air) from the supplier. The lead time from order to receipt is 4 weeks. ICON's order costs are $300 per order and the holding costs are 20% of the cost of an individual candy. Candies are ordered as individual units (pieces), but the order quantity needs to be a multiple of 12 (each box of candy created by ICON has 12 pieces of candy) and the average cost per candy is $.50. A feature of an ICON box of candy is that you never know exactly what's in it. Each box is assembled by randomly selecting 12 candies from a possible assortment of 20 different types of cream-filled chocolate. The grouping only occurs when the boxes are created and "no two boxes are exactly alike" is the product's tagline. Each box of candy is sold for $24.99 and annual demand follows a normal distribution with a mean of 6000 boxes
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
and a standard deviation of 180. To maintain customer goodwill, ICON has set a high service level objective of 95% in stock. Consider a year to have 52 weeks or 365 days. What should be ICON Candy's ROP (Reorder Point) for the candies? Round up the ROP to the nearest multiple of 12. Note your answer may differ slightly
depending on rounding. Pick the answer closest to your answer. This Problem Counts 5 Points
3468 7728 6528 7188 6912 Question 34
5 / 5 pts
Continuing with ICON Candies, what should be the EOQ for the Belgium chocolate candies? Remember that the EOQ must be stated in a multiple of 12. This Problem Counts 5 Points
7,848 22,548
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
11,280 21,912 20,796 Question 35
3 / 3 pts
This Problem Counts 3 Points
The RAMCO Tingler Integrated Supply Chain
Consider the following scenario for RAMCO Tingler Integrated Supply Chain: a multi-
tiered supply chain consisting of a Wholesaler (
W
), a Retailer (R), and a Manufacturer
(M).
The Wholesaler supplies a product to a Retailer (
R
), which, in turn, sells the product to end Customers (
C
). C
pays R
$24.99 per unit. R
pays W
$12.99 per unit. W pays the Manufacturer (M) $5.99 per unit. The costs to M
are $3.99/unit. Note that Tingler sales are seasonal (Valentine's Day) and unsold Tinglers are marked down to $1.99 and sold after the end of the season. Use the Newsvendor Model to determine the answer. The optimal service level for the integrated supply chain is: 91.30% 52.17% 38.41
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
84.03% 50.13% Question 36
2 / 2 pts
Continuing with the Tingler Integrated Supply Chain ("ISC") whose incentives are the most closely aligned? Choose the best answer. This Problem Counts 2 Points
R and M R and W R and ISC M and W M and ISC W and ISC Question 37
2 / 2 pts
Continuing with the Tingler question, what is the optimal service level of W
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
This Problem Counts 2 Points
38.41% 91.30% 95.02% 29.87% 53.89% Question 38
2 / 2 pts
Continuing with the Tingler question. If W increased its price to R from $12.99 to 14.99, but R did not increase its price to the customer, the service level for the Integrated Supply Chain would ________. This Problem Counts 2 Points
Increase Decrease Remain the same Question 39
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
3 / 3 pts
This Problem Counts 2 Points
Don's Hardware uses a Periodic Order System to place monthly orders for the majority of the products he sells in his store. One product using this system is the 32 oz Roundup Concentrated Weed and Grass Killer - a product that is extremely popular in the residential areas that Don serves. Don closely tracks the demand for all products sold in his hardware store and knows that 32oz Roundup Concentrate follows a normal distribution of demand that has a mean of 375 bottles with a standard deviation of 70. This month, prior to placing the order, Don had 72 bottles in stock. Using a periodic ordering method
, how many bottles of the 32 oz Concentrate should Don order
? To answer this question assume that for this product Don wants to be in stock
at least 90% of the time.
509 387 581 504 393 Question 40
3 / 3 pts
Michael's Mercado is a medium-sized chain of specialty grocery stores that target Latin Americans living in the southwest United States. All of the product sold in a Michael's is private label that carries the Michael's logo and the name Fresco Y Sabroso! None of Michael's suppliers are known consumer products brand names. All of the Michael's stores are relatively small and usually only carry about 1500 to 2000 unique products (stock-keeping units).
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
One of the chain's most popular grocery item is Fresco Y Sabroso! Guacamole Taquero. Demand is 4000 jars a month. The firm's current vendor charges $3.50 a jar. Holding cost is 30% of the per unit costs and it costs $225 to place an order for more jars of the Guacamole. A new supplier (but with same order cost) has offered to sell the same item to Michael's for $3.35 a jar if Michaels buys at least 8000 jars each order. If the firm (Michael's) wants to minimize annual inventory and product cost,
what should they do? This Problem Counts 3 Points
Stay with the current vendor and reject the offer Switch to the new supplier Question 41
5 / 5 pts
Waldo sells pre-packaged lunches to construction workers at a Peachtree Street construction site near the Georgia Tech campus. The pre-packed lunches include hand-
crafted sandwiches (made by Waldo's significant other), chips, and a piece of fruit. In total, product costs for Waldo are $3.50/lunch and he sells the product for $10.00 to his construction worker clientele. Ignore sales tax, Waldo doesn’t pay it anyway. When Waldo runs out of product, he simply takes orders from his remaining customers, walks two blocks to the Varsity Drive-In, and buys the exact amount of product needed to fill the orders. Waldo charges each customer exactly $1.55 more per product than his costs, which will be variable based on the exact food orders placed by the individual workers. Waldo only provides this "courier" service if he runs out of his own product and performs the service to maintain goodwill with his customers. If instead of being under, Waldo is over on product, he sells his unsold lunches to a homeless mission for $1/lunch. Waldo believes that his demand follows a normal distribution with a mean of 250 and a standard deviation of 60. Considering this information, what is Waldo's optimum service level? Select the closest answer. This Problem Counts 5 Points
51%
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
55% 57% 64% 61% 66% Question 42
2 / 2 pts
Continuing with Waldo and the data presented in the previous question, what should be Waldo's initial daily order quantity? You may use Excel or estimate with the z-table provided above but if you estimate with the z-table your answer may differ by a couple of units. Round UP to the nearest integer for answer selection. This Problem Counts 2 Points
286 308 225 246
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
238 276 Question 43
4 / 4 pts
This Problem Counts 4 Points
Alex, a Georgia Tech Freshman, is very entrepreneurial and at the age of 19 already has a thriving, if simple business. Each morning Alex stops by the Krispy Kream Donut factory on Ponce de Leon Avenue near Georgia Tech and buys a supply of donuts, which he in turn sells to office workers commuting to work in the mid-town Atlanta business district. Alex buys his donuts by the dozen, paying $7.20 per dozen. Alex then sells his donuts for $1.95
per donut. Several friends of Alex (also Georgia Tech students) staff a coffee kiosk adjacent to his Donut "shop" (an inside joke for the location on the sidewalk that Alex frequently sets up). Collectively the students do very well and hope to maintain these business activities as long as their school schedule permits. Currently, Alex is able to sell his Donuts from 6:30 am to 9:45 am, at which time he needs to leave for classes. If Alex runs out of donuts before 9:45 he simply packs up and leaves early. If Alex has unsold donuts at 9:45 he takes the unsold donuts back to his dorm where he throws away all the donuts he can't eat or give away. Alex always insists on freshly made Donuts each day for his clientele.
Alex tracks his sales closely and knows for the 3-hour and 15-minute period (6:30 am - 9:45 am) his demand follows a normal distribution with a mean of 140 and a standard deviation of 28. Assuming that Alex intends to maximize his profits using the Newsvendor model, how many DOZENS of Donuts should Alex buy each morning? NOTE: Remember that Alex can only buy donuts boxed as a dozen. Round up to the nearest dozen if his optimal order quantity is not a multiple of 12. 10 13
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
15 9 17
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help