# 3. In what way can improper incentives lead to a lack of coordination in a supply chain?What is the impact of the lack of coordination on the overall supply chain performance? What countermeasures can be used to offset this effect?

#1. A North Face retail store in Chicago sells500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent. The fixed cost of a replenishment order (including transportation) is $100. The store currently places a replenishment order every month for 500 jackets. What is the annual holding and ordering cost? On average, how long does a jacket spend in inventory? If the retail store wants to minimize ordering and holding cost, what order size do you recommend?How much would the optimal order reduce holding and ordering cost relative to the current policy?

Identify FOUR sourcing approaches, and for each one, identify and explain how you apply them to a category of spend within your organisation. Choose one of these categories and develop a supplier appraisal check list.

1. The following data were obtained from a recent quarterly report for Dell Computer (in millions): Net revenue $8,028 $6,580 Cost of revenue Inventories: Production materials Work-in-process and finished goods Accounts receivable Accounts payable Calculate the cash-to-cash cycle time for Dell. $126 $224 $2,689 $4,326 2. Obtain from the Internet the current data needed to calculate cash-to-cash cycle time for Dell Computer, Gateway, and Cisco Systems. Calculate the measure for each company and critically evaluate the differences in how the companies operate their supply chains. 3. Evaluate the effect of the following changes that a company makes on cash-to-cash cycle time. Indicate simply the direction of movement of the measurement (i.e., up, down or no change). Reduction in cost-of-goods sold More frequent deliveries from suppliers Reductions in time customers are allowed to pay for goods Change from paying suppliers on receipt of goods to waiting 60 days to pay suppliers Write-off of obsolete inventory Reduction in labor content in a production process Outsourcing the production of a major product 4. Return to the Ajax sandwich example on page 17. Suppose that in addition to the 300 peanut butter and jelly sandwiches to be delivered on Friday, Ajax also needs to make 2,000 sandwiches of other varieties. Assume that the same amount of time is needed to assemble sandwiches and that each parttime student can work for five hours. How many students are needed on Thursday?

4. Describe the triple bottom line of sustainability in the context of sustainable procurement. For each pillar,provide one example of unsustainable operation by suppliers and discuss how buying firms can address the issue.

2. A popular brand of tennis shoe has had the following demand history by quarters over a three-year period: 2015 1 2 3 4 Demand 12 25 76 52 2016 1 2 3 4 Demand 16 32 71 62 2017 1 2 3 4 Demand 14 45 84 47 a. Determine the seasonal factors for each quarter by the seasonal decomposition method. b. Based on the result of part (a), determine the deseasonalized demand series. c. Predict the demand for the first quarter of 2018 for the deseasonalized series from a six- quarter moving average.

1. What will the failure-rate curve look like with incorporating system changes, upgrades, and maintenance? Discuss potential issues involved after each of these activities. What is the role of a logistics system in responding these changes/upgrades/maintenance activities? (12 points)

How can we say that Block chain technology bring efficiency and transparency in transactions?

2. The following table shows the life cycle cost summary of a current approach for a system's operations. If you think the cost allocation in this approach is good, explain why it is good. If you do not think it is good, explain how you would change the cost allocation and why your change is better? Discuss the potential issues for implementing this current approach (if you think it is good) or your approach (if you think the current approach is not good). (14 points)

Operations Group 1) Identify a viable production process to produce 12 million vita bars including mapping the production process and baking equipment needed to achieve volume and quality targets. Bar manufacturing process, equipment and co-packing options are listed in Appendices A and B. 2) Determine the cost of setting up Vita Bar's own production facility versus using a co-packer. A list of equipment needed (can be new or used) along with production capacity and cost should be included. Teams should also identify leading operational constraints that will affect production volume. Coordinating production needs with the ingredients team is essential. 3) The team should articulate labor needed to operate their production system along with identifying production capacity and costs by shift. The team should also identify how many hours of production and shifts they will require to meet 182K, 1M and 12M bar production levels. 4) The operations team should determine warehousing and logistics needs and costs to ramp up Vita Bar distribution across the United States for 12 million bars. Production and/or warehousing will be in one location within the continental United States. Specifically, teams should search on- line for local warehouse purchase versus lease options that would best suit their production decisions. A minimum of 10,000 square feet facility, with office space is needed, if the team elects to produce their own product. A minimum of 2500 square foot warehouse with office space would be needed, if the team selects a copacking option. 5) The team should identify the amount of capital needed for establishing Vita Bar's first production facility and justify their decisions.