Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Question
Chapter 2.4, Problem 8P
Summary Introduction
To explain: The meaning of the saying from an inventory control manager if the manager says that it is not his/her fault that the production units lacked, it is due to the wrong forecast of demand.
Introduction:
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Students have asked these similar questions
“Sourcing – So where does Starbucks coffee come from? Starbucks sources its coffee beans directly from nearly 30,000 coffee farms around the world, in countries such as Brazil, Columbia, Guatemala, Kenya, Mexico, Saudi Arabia, and Tanzania. Starbucks suppliers are carefully selected by following Starbucks’ own Coffee and Farmer Equity (CAFE) standards and Coffee Sourcing Guidelines (CSG). Each Starbucks supplier needs to meet these standards and requirements. According to Starbucks, the farms must have safe working conditions and not use forced or child labour.”
Source: https://www.dynamicinventory.net/starbucks-supply-chain-management/
Based on the above statement, it shows that managing sourcing is very important in supply chain management.
i. In your opinion, what factors that Starbuck considered when making sourcing decisions?ii. Discuss some ways that firm such as Starbuck benefits from good sourcing decision.
A company's distribution and warehouse expenses do NOT include which one of the following?
a) The costs of processing, boxing, packaging, handling, and shipping orders to footwear retailers and -online buyers
b)A standard import tariff of $4.00 per pair on any pairs imported from the company's foreign production facilities--tariffs are due and payable at the port of entry rather than when the pairs are sold
c)Annual leasing and maintenance fees of $1 million for each of the company's four distribution centers; however, such expenses fall to 5 times the number of pairs sold when warehouse volume in any region is less than 200,000 pairs annually (should company managers decide to abandon selling footwear in a geographic region, leasing and maintenance costs will fall to $0 (resuming if/when sales begin again)
d)The inventory costs of carrying unsold pairs over from the prior year ($0.50 per pair on required inventrory and $1 per pair on additional unsold pairs)
e)Per pair freight…
The bullwhip effect is used to describe how relatively small fluctuations in the market can cause increasing volatility further back in the chain. What is the main driver of this phenomenon
O a. The creating of partnership relationships in the supply chain
b. Collaborative Planning Forecasting and Replenishment (CPFR)
C. Introduction of information systems linking all parts of the supply chain
Od. The desire by the different links in the chain to manage their production rates and inventory levels sensibly.
Chapter 2 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 2.4 - Prob. 1PCh. 2.4 - Prob. 2PCh. 2.4 - Prob. 3PCh. 2.4 - Prob. 4PCh. 2.4 - Prob. 5PCh. 2.4 - Prob. 6PCh. 2.4 - Prob. 7PCh. 2.4 - Prob. 8PCh. 2.4 - Prob. 9PCh. 2.6 - Prob. 10P
Ch. 2.6 - Prob. 11PCh. 2.6 - Prob. 12PCh. 2.6 - Prob. 13PCh. 2.6 - Prob. 14PCh. 2.6 - Prob. 15PCh. 2.7 - Prob. 16PCh. 2.7 - Prob. 17PCh. 2.7 - Prob. 18PCh. 2.7 - Prob. 19PCh. 2.7 - Prob. 20PCh. 2.7 - Prob. 21PCh. 2.7 - Prob. 22PCh. 2.7 - Prob. 23PCh. 2.7 - Prob. 24PCh. 2.7 - Prob. 25PCh. 2.7 - Prob. 26PCh. 2.7 - Prob. 27PCh. 2.8 - Prob. 28PCh. 2.8 - Prob. 29PCh. 2.8 - Prob. 30PCh. 2.8 - Prob. 31PCh. 2.8 - Prob. 32PCh. 2.9 - Prob. 33PCh. 2.9 - Prob. 34PCh. 2.9 - Prob. 35PCh. 2.9 - Prob. 36PCh. 2.9 - Prob. 37PCh. 2.10 - Prob. 38PCh. 2.10 - Prob. 42PCh. 2.10 - Prob. 43PCh. 2.10 - Prob. 44PCh. 2.10 - Prob. 45PCh. 2 - Prob. 47APCh. 2 - Prob. 48APCh. 2 - Prob. 49APCh. 2 - Prob. 50APCh. 2 - Prob. 51APCh. 2 - Prob. 52APCh. 2 - Prob. 53APCh. 2 - Prob. 54APCh. 2 - Prob. 55APCh. 2 - Prob. 56APCh. 2 - Prob. 57APCh. 2 - Prob. 58AP
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