供应链设计与管理课后答案

Designing and Managing the Supply Chain

David Simchi-Levi Philip Kaminsky Edith Simchi-Levi Solutions for Discussion Questions1 Kerem B¨ulb¨ul

1We would like to thank Shiming Deng for his valuable contributions to the preparation of this manual. Chapter 1

Introduction to Supply Chain Management

Discussion Questions

Question 1

Pick any car model manufactured by a domestic auto maker. For example, consider the 2002 Ford Thunderbird.

a. The supply chain for a car typically includes the following components:

1. Suppliers for raw materials

2. Suppliers for parts and subsystems

3. Automobile manufacturer (Ford, in this example). Within a company, there are also

di ff erent departments, which constitute the internal supply chain:

i. Purchasing and material handing

ii. Manufacturing

iii. Marketing, etc.

4. Transportation providers

5. Automobile dealers

b. Many Trms are involved in the supply chain.

1. Raw material suppliers. For instance, suppliers for steel, rubber, plastics, etc.

2. Parts suppliers. For instance, suppliers for engines, steering wheels, seats, and elec- tronic components, etc.

3. Automobile manufacturer. For instance, Ford.

4. Transportation providers. For instance, shippers, trucking companies, railroads, etc.

5. Automobile dealers. For example, Hayward Ford.

c. All companies involved in the supply chain want to maximize their respective proTts

by increasing revenue and decreasing cost. However, companies may employ di ff erent

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strategies in order to achieve this goal. Some of them focus on customer satisfaction

and quick delivery, while others may be more concerned about minimizing inventory

holding costs.

d. In general, di ff erent parts of the supply chain have objectives that are not aligned with each other.

1. Purchasing: Stable order quantities, ?exible delivery lead times and little variation

in mix.

2. Manufacturing: Long production runs, high quality, high productivity and low pro- duction costs.

3. Warehousing: Low inventory, reduced transportation costs and quick replenishment capability.

4. Customers: Short order lead times, a large variety of products and low prices. Typically, the automobile dealer would like to o ff er a variety of car colors and conTg- urations to accommodate di ff erent customer preferences, and meanwhile have a short delivery lead time from the manufacturer. However, in order to maximize the length of production runs, and utilize resources more e ffi ciently, the manufacturer would like to aggregate orders from di ff erent dealers and o ff er less variety in car conTgurations. This is a clear example of con?icting marketing and manufacturing goals.

Question 2

a. The supply chain for a consumer mortgage o ff ered by a bank may involve various com- ponents:

1. Marketing companies that handle solicitation to potential customers.

2. Credit reporting agencies that evaluate potential customers.

3. The bank that extends the mortgage loans.

4. Mortgage brokers through which the loans are distributed.

b. The marketing companies strive to increase the response rate from homebuyers in order to maximize their returns. Banks aim at a customer portfolio with a relatively low risk, healthy ?ow of payments and low average loan maturity date. The brokers would like

to maximize their sales commissions.

c. Similar to product supply chains, the objective of a service supply chain is to provide what is needed (in this case a particular type of service, rather than a physical product)

at the right location, at the right time, and in a form that conforms to customer require- ments while minimizing systemwide costs. However, there are a number of di ff erences between the two types of supply chains. For instance:

1. In a product supply chain, there is both a ?ow of information and physical products.

In a service supply chain, it is primarily information.

2. Contrary to a service supply chain, transportation and inventory are major cost components in a product supply chain.

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3. Services typically cannot be held in inventory, so matching capacity with demand is frequently more important in a service supply chain.

4. In a service supply chain, the (explicit) cost of information is higher than in a product supply chain. Note that in the mortgage example above, the bank has to compensate

the credit reporting agency for each credit report it obtains.

Question 3

Many supply chains evolve over time. For example, consider a memory chip supply chain.

Production strategies may change during di ff erent stages of the product life cycle. When

a new memory chip is introduced, price is high, yield is low, and production capacity

is tight, and the availability of the product is important. Consequently, production is usually done at plants close to markets, and the management focuses on increasing yield, reducing the number of production disruptions, and fully utilizing capacity. When the product matures, however, its price drops and demand is stabilized for a period of time,

so minimizing production cost moves to center stage. To reduce costs, production may be outsourced to overseas foundries, where labor and materials are much cheaper.

Question 4

A vertically integrated company aims at tighter interaction among various business com- ponents, and frequently manages them centrally. Such a structure helps to achieve sys- temwide goals more easily by removing con?icts among di ff erent parts of the supply chain through central decision making. In a horizontally integrated company, there is frequently no beneTt in coordinating the supply chains of each business within the company. Indeed, if every business specializes in its core function, and operates optimally, an overall global optimum may be approached.

Question 5

E ff ective supply chain management is also important for vertically integrated companies. In such an organizational structure, various business functions are handled by di ff erent departments of the company that usually have di ff erent internal objectives, and these objectives are not necessarily aligned with each other. This may be due to lack of com- munication among departments or the incentives provided by the upper management. For instance, if the sales department is evaluated based on revenue only, and the manufacturing department is evaluated based on cost only, the company.s proTt may not be maximized globally. E ff ective supply chain management is still necessary to achieve globally optimal operations.

Question 6

The sources of uncertainty in this example include:

1. Factors such as weather conditions, diseases, natural disasters cause uncertainty in availability of raw materials, i.e., peach crop.

2. Uncertain lead times during transportation of crop from the Teld to the processing facility may a ff ect the quality of peaches, e.g., they may get spoiled.

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3. Processing times in the plant, as well as the subsequent warehousing and transportation times are subject to uncertainty.

4. Demand is not known in advance.

Question 7

A small number of centrally located warehouses allows a Trm to take advantage of risk pooling in order to increase service levels and decrease inventory levels and costs. However, outbound transportation cost is typically higher, and delivery lead times are longer. On

the other hand, by building a larger number of warehouses closer to the end customers, a

Trm can decrease outbound transportation costs and delivery lead times. However, this

type of system will have increased total inventory levels and costs, decreased economies of scale, increases warehousing expenses, and potentially increased inbound transportation

expenses.

Question 8

The choice of the particular transportation service depends largely on the types and sizes

of products the company wants to transport, the inventory and delivery strategies and the need for ?exibility:

1. A truckload carrier is better if delivering bulky items or small items in large and stable quantities from warehouses to demand points (stores). A good example is the delivery

of groceries from warehouses to supermarkets. Note that in this case we would like the demand to be in increments of full truck loads.

2. A package delivery Trm is more appropriate if relatively small items are delivered from the manufacturer/warehouse directly to the customers. Additionally, a package carrier company o ff ers more ?exibility by di ff erent modes of transportation depending on the needs of the individual customers.

Question 9

1. High inventory levels

i. Advantages: High Tll rate (service level) and quick order fulTllment.

ii. Disadvantages: High opportunity cost of capital tied in inventory, danger of price declines over time and obsolescence, need for more warehouse space.

2. Low inventory levels

i. Advantages: Low inventory holding and warehousing costs.

ii. Disadvantages: Higher risk of shortages and lower service levels.

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Case Discussion Questions — Meditech Surgical

Question 1

Meditech experiences poor service levels for new products, and inventory levels higher than necessary for all products.

Question 2

There are many causes for these problems:

1. Demand is not studied in detail.

2. Information systems that record and monitor demand and inventory are poorly designed.

3. Forecasting errors are not tracked.

4. There is a tendency to shift the blame to the customers, e.g., panic ordering.

5. There are built-in delays and monthly buckets in the planning system.

6. The planning system ampliTes small variations in demand.

7. Poor communication with customers; Meditech doesn.t typically see end-customer de- mand.

Question 3

The customer service manager is directly exposed to the complaints from the customers. Hence, he is in a good position to gauge the scope of the problems. Other managers do

not face the customers, and they do not necessarily focus on their satisfaction.

Question 4

1. Recognize that demand is predictable, and establish better forecasting systems and accountability for forecasts.

2. Institute better planning systems to eliminate planning delays; reduce the size of system time buckets.

3. Alternatively, put assembly within the pull system and eliminate bulk inventory com- pletely.

4. Develop and implement better information systems.

5. Improve communications with customers.

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Chapter 2

Logistics Network Configuration Discussion Questions

Question 1

The factors that a ff ect the performance of the logistics network are not static, i.e., they change over time. These factors include demand, product design, various costs in the logistics network, regulations, contracts, etc. The e ff ects of these dynamics need to be evaluated periodically in order to determine whether the existing conTguration is still satisfactory given the new operating environment.

For instance, service level requirements may change due to increased competition which typically means that the lead time to fulTll customer orders needs to be shortened. This may require the Trm to redesign its logistic network and build new warehouses that are closer to the end customers.

Question 2

The design of the logistics network is a strategic decision that has long lasting e ff ects and impacts all functions within the company. For the success of such a project, many levels

of the organization must be involved:

1. Upper Management: The new design must be aligned with the vision and strategic goals of the company. Additionally, such a project may be costly, so management buy-in is essential to ensure that su ffi cient resources are devoted to the project.

2. Sales and Marketing: Demand forecasts and anticipated changes in product design and

o ff erings a ff ect the network and need the involvement of sales and marketing teams.

3. Manufacturing and Operations: The logistics network design has obvious impact on day- to-day operation of the Trm. In order for the implementation to succeed, it is essential

that the people involved with operating the system on a daily basis are involved in its design.

Question 3

The decision that a single warehouse will be built has been made up-front. Therefore, we only need to focus on the location and capacity of the warehouse, and determine how much 7

space should be allocated to each product in the warehouse. The main steps of the analysis are outline below.

1. Data collection

i. Location of retail stores, existing warehouses (5 warehouses located in Atlanta,

Boston, Chicago, Dallas and Los Angeles), manufacturing facilities (a single man- ufacturing facility in San Jose), and suppliers.

ii. Candidate locations for the new warehouse.

iii. Information about products, i.e., their sizes, shapes and volumes.

iv. Annual demand (past actuals and future estimates) and service level requirements

of the retail stores.

v. Transportation rates by available modes.

vi. Transportation distances from candidate warehouse locations to retail stores.

vii. Handling, storage and Txed costs associated with warehousing. Fixed costs should

be expressed as a function of warehouse capacity.

viii. Fixed ordering costs, order frequencies and sizes by product or product family.

2. Data aggregation. Demand needs to be aggregated based on distribution patterns

and/or product types. Replace aggregated demand data points by a single customer.

3. Mathematical model building.

4. Model validation based on existing network structure.

5. Selection of a few low cost alternatives based on the mathematical model.

i. For the Tnal decision, incorporate qualitative factors that were disregarded in the mathematical model, e.g., speciTc regulations, environmental factors, etc.

ii. Optionally, build a detailed simulation model to evaluate these low cost candidate solutions.

6. Decide where to locate the centralized warehouse.

With the centralized warehouse, service level will increase (less stock-outs) and inven- tory holding costs will decrease due to risk pooling. Also, Txed costs associated with ware- housing will typically decrease, and inbound transportation costs from the manufacturing facility to the warehouse should be less than the sum of the previous inbound transporta- tion costs. However, we will incur increased outbound transportation costs from the central warehouse to the retailers. In summary, the essential design trade-o ff is between trans- portation costs on one hand, and inventory holding costs and service level requirements on the other.

Question 4

a. In automobile manufacturing, cars are usually delivered over land, and demand is con- centrated around major cities. Therefore, we would expect warehouses in this industry

to be located near large cities with easy access to freeways and railroads. This would

help to reduce the delivery lead time to dealerships in the cities.

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b. In the pharmaceutical industry, overnight delivery is common. Therefore, proximity

to a major airport is a factor that should be considered when choosing a warehouse location. Additionally, for raw material warehouses it is important that these are close

to natural resources.

c. In the book industry, supplier warehouse locations would be a ff ected by the availability of nearby natural resources.

d. In the aircraft manufacturing industry, sub-assemblies and parts are delivered by thou- sands of suppliers scattered all over the globe to the manufacturing facilities. Therefore, for these supplier warehouses, by far the most signiTcant consideration is the ability to

ship parts easily and on-time, i.e., the proximity to railroads, freeways, harbors, etc.

In such a capital intensive industry, we would also expect that regulations such as tax breaks have an impact on potential warehouse locations.

e. With a large customer base shopping for books on-line, short delivery lead times are crucial. Therefore, in book distribution, we would expect to Tnd large centralized ware- houses on reasonably priced land and where quick transportation modes are available.

f. Furniture manufacturing and distribution depends heavily on manual labor. Therefore, warehouses in this industry should be located close to cities with su ffi cient labor supply.

g. In PC manufacturing, outsourcing from all around the world is common where labor is cheaper and regulations favor the huge investments associated with high-tech manufac- turing. These considerations should be factored in when choosing candidate warehouse locations.

Question 5

In the pharmaceutical industry, we would expect more warehouses closer to the end cus- tomers for short delivery lead times. On the other hand, in the chemical industry there would be fewer centralized warehouses in order to consolidate orders and decrease outbound transportation costs.

Question 6

If we expect that the truck would travel empty on its return route, then TL rate would

be higher. Considering the example in Section 2.2.2, the probability that the truck comes back empty from Illinois (industrial heartland) to New York is lower than the corresponding probability from New York to Illinois which explains the asymmetric cost structure between these two cities.

Question 7

1. Handling Costs

i. Labor cost of workers in material handling.

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ii. Costs of conveyors, fork lifts, automated guided vehicles (AGVs), etc., used to carry

the goods in the warehouse. Note that these costs have two components: variable

costs that are linearly proportional to the distances the goods are transported over;

and purchasing costs of equipment that are proportional to the daily output required

from the material handling system, but in a non-linear way because equipment is purchased in discrete quantities.

2. Fixed Costs

i. Purchasing or rental cost of land.

ii. Cost of maintaining and operating the warehouse building which includes annual depreciation and utility costs.

iii. Cost of racks that depend on the capacity of the warehouse.

iv. The cost of insurance for the facility.

3. Storage Costs

i. Opportunity cost of capital tied up in inventory.

ii. Cost of price declines while inventory is sitting in the warehouse. Note that this includes the risk of obsolete inventory that needs to be salvaged.

Question 8

An exact optimization technique is guaranteed to provide an optimal solution (if one exists) even if it takes a long time. On the other hand, a heuristic algorithm is a method that

will Tnd good solutions to the problem in a reasonable amount of time where the terms

.good. and .reasonable. depend on the heuristic and the particular problem instance. (See Bramel and Simchi-Levi (1997).) The choice between an exact optimization technique and a heuristic algorithm for a given problem frequently depends on the trade-o ff between solution quality and solution time. Note that even if a heuristic algorithm (by chance)

Tnds the optimal solution to a problem, it cannot conTrm the optimality of the solution.

On the other hand, for many problems there are no known optimal algorithms, so heuristics must be used.

Question 9

Simulation is a popular performance evaluation and modeling tool for complex stochastic systems that cannot be evaluated analytically. A simulation model can closely re?ect a

real system and mimic its behavior, but it has some drawbacks: simulation is a descriptive tool, i.e., it cannot provide optimal values for system inputs. It generates, for a given set

of inputs, sample outputs from the system that are used to compute statistical estimates

of the performance measures. Also, accurate simulation models of large systems require extensive development e ff ort, and typically take a long time to run. Thus, we advocate a two-phase approach to solve di ffi cult logistics problems:

1. Use a mathematical optimization model to generate a number of good candidate solutions, taking into account the most important cost components.

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2. Use a detailed simulation model to evaluate the candidate solutions generated in the

Trst phase.

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Chapter 3

Inventory Management and Risk Pooling

Discussion Questions

Question 1

Companies can cope with uncertainty by

1. keeping safety stock,

2. shortening production and order lead times,

3. using risk pooling strategies,

4. delaying product di ff erentiation in the supply chain as much as possible, i.e., aggre- gating demand for parties upstream of the supply chain, and

5. by installing systems to achieve information sharing between suppliers and buyers,

thus enabling collaborative demand forecasting.

Question 2

In general, higher inventory levels make it easier to maintain higher service levels. However,

modern inventory management techniques may make it possible to increase service levels without increasing inventory levels as much as in the past.

Question 3

The variability in demand increases as the average and the variance of lead time increase. Therefore, for a given service level, inventory levels increase with longer lead times and higher lead time variance.

Question 4

The target service level depends on the mission-criticality of the product. For instance, consider a service parts vendor for equipment for which every hour of down time is very 12

expensive. (See Example 6-5.) In this case, we would expect the management of the vendor company to specify a service level close to 100%.

Market conditions also play an important role in determining target service levels. For commodities, we would expect relatively high service levels since customers can switch products easily if they do not Tnd the particular product they look for. However, a lower service level may be acceptable if the product has a clear value di ff erentiation compared to its competitors. For instance, customers of a high-end server that is clearly deemed superior to the rest of the market may be willing to wait for 1-2 weeks if the manufacturer is out-of-stock.

Question 5

The reorder level s = L ?AV G+z ?STD?√L has two components. The Trst component L ?AV G covers the expected demand during lead time, and the second component z ?STD ?√L is the safety stock that protects against deviations from the expected demand during lead time. Therefore, immediately before the order arrives, we expect that the Trst component is depleted completely and the inventory level is z ?STD ?√L. Then, when an order of Q units arrives, the expected level of inventory is Q + z ?STD ?√L. Question 6

In the base-stock policy, at the time the warehouse places an order, this order raises the inventory position to the base-stock level (r + L) ?AV G + z ?STD ?√r + L. Similar to the reorder level s in the continuous review policy discussed in Question 5, this base- stock includes two components: the average demand (r +L) ?AV G until the order arrives after r + L periods, and the safety stock z ?STD ?√r + L that protects against demand uncertainty during lead time. Thus, just before an order arrives, the expected inventory

on hand is equal to the safety stock z ?STD ?√r + L.

In order to determine the expected inventory level right after an order arrives at time

t + L, note that when inventory is reviewed at time t, the inventory position is raised to

the base-stock level, and an order that was placed at time t?r arrives at time t+L. (See Figure 3-12.) Therefore, when an order arrives, the expected inventory level is L ?AV G units less than the base-stock level, i.e., is equal to r ?AV G + z ?STD ?√r + L. Question 7

Observe that the longer L1, the more time the system has before allocation of inventory

to the retailers need to be made by the cross-dock facility. Thus, the longer L1 the more

the system can take advantage of the risk pooling concept. Hence, the total amount of inventory is smaller when the cross dock facility is closer to the retail outlet.

Question 8

The answer is not immediately clear because the required safety stock depends both on

the average and the variance of the lead time. The retailer would have to make a decision depending on the relative e ff ects of these two factors. See Section 3.2.6. Also, your decision would ultimately depend on the requirements of the retailer.s customers.

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Question 9

For a mature product, it is reasonable to expect that the price and demand are stable

in the short term. However, as the time horizon gets longer, and new products are in- troduced into the market, the demand and price for this particular product decrease and excessive inventories may have to be written o ff. Thus, inventory holding costs related to obsolescence may be regarded as Txed in the short term, but not in the long term.

Some storage costs are another example of inventory related costs Txed in the short

term, but variable in the long term. For instance, due to large inventories a company may have to rent multiple warehouses for a Txed lease term. However, if inventory policies are improved and turnover rates are increased in this period of time, then it may be possible

to rent fewer warehouses when renewing the lease contracts. Clearly, similar arguments can be made for material handling equipment, storage racks, insurance, personnel, etc. Question 10

Such deterministic models can be used as proxies for the more realistic stochastic models

if the planning horizon is short, and the parameters of the problem are expected to be relatively stable over this time frame. However, most importantly, simple models can illustrate the basic trade-o ff s in a given type of problem which also translate into more realistic and complex situations. For instance, the optimal policy for the economic lot sizing model balances ordering and inventory holding costs which is a general insight for more sophisticated systems as well.

Question 11

There are implicit and explicit penalties associated with a highly variable demand. For instance:

1. As discussed in Sections 3.

2.5 to

3.2.7, the level of safety stock is proportional to the variability in demand, i.e., the higher the variability in demand the higher the inventory holding costs.

2. From a manufacturer.s perspective, highly variable demand means that utilization of equipment will greatly ?uctuate, and equipment will sit idle when demand is low.

3. From a managerial perspective, high variability makes planning a very complex task that requires additional resources, sophisticated models and tools.

On the other hand, if a company is successful at implementing strategies to cope with high variability in demand, it may be possible to leverage on these to increase market share and/or revenue if the competitors are not as successful.

Question 12

The factors that a ff ect the choice of the supply contract type include the following:

1. Business convention: Companies tend to choose the contract form that is most common in their type of business.

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2. Information availability: The type of information available may dictate what type of contract can be implemented in practice. Depending on the contract type, suppliers

and buyers require access to di ff erent types of information, and some information may

be di ffi cult for the supplier to acquire but easier for the retailer, or vice versa.

3. Decision making and incentives: To achieve the optimal proTt for the whole system and to allocate it properly, both suppliers and retailers must understand that decisions must

be made collaboratively. All parties must be aware that they have to give up part of the control in their individual systems, and the choice of the supply contract type depends

on the level of control that parties are willing to share with each other.

1. Buy-back contracts:

i. Advantages:

(a) Commonly used in many businesses.

(b) The coordinating prices are not very sensitive to the demand distribution.

ii. Disadvantages:

(a) The supplier may have to buy back a large quantity of the product when demand

is low.

(b) Extra transportation and re-stocking costs for returned items.

2. Revenue-sharing contracts:

1. Advantages:

(a) Easy to understand.

(b) The optimal values of the decision variables are not very sensitive to the demand distribution.

2. Disadvantages:

(a) Need to monitor the total revenue.

3. Quantity-?exible contracts:

i. Advantages:

(a) Commonly used in many businesses.

ii. Disadvantages:

(a) The optimal values of the decision variables are sensitive to the demand distri- bution.

(b) Extra transportation and re-stocking costs for returned items.

4. Sale-rebate contracts:

i. Advantages:

(a) It is a direct incentive to the retailer to increase sales.

ii. Disadvantages:

(a) Di ffi cult to track and implement.

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Question 13

Generally speaking, there is a lag between development of algorithms in the operations management literature and their adoption in business. There are several reasons for this:

1. Practitioners are not familiar with the literature.

2. It is hard to convince the industry that analytical models are useful. There is resistance

to change.

3. Possible gaps between theory and practice.

4. There are practical problems in implementation. For instance, without the development of information technology, it would have been hard for the movie studios to track end- customer demand and the revenue received by Blockbuster.

Also, in this particular case, the increasingly lucrative movie rental business due to advances in home theater systems, and increased competition from media distribution over the Internet may have forced Blockbuster and the movie studios to re-consider and improve their business models.

Question 14

(a) Risk pooling across locations: combining several warehouses into a single central ware- house.

(b) Risk pooling across time: using quarterly demand forecasts instead of monthly forecasts to do capacity planning.

(c) Risk pooling across products: designing products with maximum commonality and delaying product di ff erentiation in the supply chain as much as possible.

Question 15

If pricing strategies, service levels and quality of service in two stores are similar, then we would expect the demand in these two stores to be positively correlated. However, assume that while the overall market demand is relatively stable, one of the stores is running a promotion. In this case, we would expect that the promotional campaign would steal sales from the other store, so that the demand in the two stores would be negatively correlated. Question 16

In the absence of historical data, judgment and market research methods would be most useful at the beginning of the life cycle of the Trst Sony WalkmanTM. As more data be- comes available during the product adoption phase, time-series methods could be employed successfully. Then, as the product matures and the manufacturer has a better understand- ing of the factors that a ff ect demand, both time-series and causal methods could prove

e f

f ective.

When introducing a more recent Walkman model, we would expect Sony to rely much less on judgment and market research methods compared to the very Trst model. Years of experience, knowledge and data can be used to develop accurate quantitative time-series and causal models.

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Question 17

a. The beneTts of risk pooling increase as the correlation between demands decrease. Therefore, similarity of demand across the Tve regions makes the proposed system less appealing.

b. The total cost of the decentralized system is $9,272 per week. In the centralized system, LA is the best location with the total cost of $6,545 per week. Please refer to the attached spreadsheet .Chapter 3 Question 17.xls. for details.

c. In this case, the minimum total cost is $8,808 per week, and the central warehouse

is located in LA. In other words, the decrease in the inventory holding costs due to

the decreased lead time between the manufacturing facility and the warehouse is more than o ff set by the increase in the transportation costs. Please refer to the attached spreadsheet .Chapter 3 Question 17.xls. for details.

Case Discussion Questions — Sport Obermeyer

Please refer to .Harvard Case Notes: Sport Obermeyer Ltd., Teaching Note (5-696-012) 31p, Janice H. Hammond, Ananth Raman. for solutions of the case discussion questions.

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Chapter 4

The Value of Information

Discussion Questions

Question 1

a. Barilla experiences wild ?uctuations in pasta demand while variability in end-customer demand is quite small. This ampliTcation in demand variability in the supply chain

is known as the bullwhip e ff ect, and it strains Barillas manufacturing and logistics operations. Several factors contribute to this e ff ect:

1. Transportation discounts, which induce distributors to order larger quantities less frequently

2. Trade promotions and volume discounts that create demand ?uctuations.

3. Delivery lead times of an average of 10 days from Barilla to the distributors.

4. Product proliferation, which makes forecasting more di ffi cult.

5. Poor communication between parties in the supply chain.

6. Sequential decision making process in the supply chain, i.e., no collaboration.

The JITD program transfers decision-making authority for determining Barilla-distributor shipments from the distributor to Barilla. Rather than simply Tlling orders speciTed

by the distributor, Barilla would monitor the ?ow of its product through the distribu-

tors warehouse, and then decide what to ship to the distributor and when to ship it.

This system alleviates many of the problem listed above, and enables Barilla to make manufacturing and logistics decisions that beneTt the entire system.

b. The most signiTcant internal barrier to JITD is raised by the sales reps, who feel that JITD would diminish their role in managing inventory and setting up promotions, poten- tially threatening their job security. Giorgio Maggiali needs to explain and demonstrate

to the sales force that the proposed program would in fact increase customer service level by reducing stock-outs, and potentially lead to cost savings. Ultimately, JITD would help the sales reps to manage the orders more e ffi ciently by increasing visibility

of the demand process. JITD is not a substitute for the sales force; it is a tool that

is made available to them for better customer service. Also, Maggiali needs to explain that JITD is a company-wide e ff ort, essential for Barilla.s long term success.

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c. As a customer, JITD would at Trst be disconcerting because I would be losing con-

trol of my inventory. In order for me to agree to JITD, Barilla needs to convincingly demonstrate the speciTc beneTts that JITD will have for me.

d. The proposed system will be e ff ective if it can be implemented correctly, and indeed, subsequent results showed that JITD was very e ff ectiv

e. In order to show value, it would be useful to demonstrate that JITD beneTts the distributors (lowering inventory, improving their service levels, and increasing their returns on assets) by running exper- iment at one or more of Barillas 18 depots. If customers will not agree to JITD, they

may at least agree to collaborative forecasting or increased supply chain visibility. Question 2

a. E-commerce and the Internet allow upstream parties, e.g., suppliers, to have access

to more accurate demand information. It mitigates the bullwhip e ff ect by preventing distortion and miscommunication of demand information, and reducing the lead time

in order processing.

b. Express delivery reduces lead times, and the associated demand variance. Note that in the formulas in Sections 4.2.1 and 4.2.2, the variability of demand is proportional to the lead times in the system.

c. Collaborative forecasts help all stakeholders in the supply chain to arrive at a common, agreed-upon forecast of end-customer demand and reduce the bullwhip e ff ect.

d. Periodic promotions create artiTcial demand peaks and bottoms and increase the vari- ance in customer demand which ampliTes the bullwhip e ff ect. By everyday low pricing, these demand ?uctuations can be prevented, alleviating the bullwhip e ff ect partly.

e. Vendor-managed inventory allows the supplier to monitor downstream demand and to make a well-informed decision about how much to keep on-hand and how much to ship to its customers. Thus, the supplier does not have to rely on order data to forecast demand and thus reduces the bullwhip e ff ect.

f. Supply contracts align incentives in the supply chain, and reduce the uncertainty in demand by determining agreed-upon supply limits, thereby reducing the bullwhip e ff ect. Question 3

Sharing inventory is a form of risk pooling because it reduces the amount of safety stock needed at each of the retail stores without decreasing the service level. Thus, sharing inventory reduces inventory holding costs or increases service level. Additionally, trans- portation costs may be reduced because goods are delivered from closer sources in case of stock-outs.

Proper incentives must be in place to encourage retailers to share inventory. For in- stance, consider a case in which retailer one holds relatively less safety stock than retailer two. Retailer one will experience stock-outs more frequently, and will order those items

from retailer two. However, retailer two may not be willing to share its inventory unless it is compensated by retailer one for the additional holding costs it incurs, because retailer 19

two.s additional inventory is a (typically expensive) competitive advantage. For example, think about a small Chevy dealer and a large Chevy dealer in the same town. The larger number of cars on the large dealer.s lot is an advantage.if he constantly supplies cars to the smaller dealer, he loses that advantage.

Question 4

Several strategies can be employed to reduce the lead times in the supply chain:

1. Use EDI (Electronic Data Interchange) that reduces the information lead time in the order process.

2. Use cross-docking to reduce/eliminate the time items spend in inventory.

3. Share inventory with nearby retail stores to reduce the lead time during stock-outs.

4. Share demand information throughout the supply chain to be able to respond to demand ?uctuations rapidly.

5. Use delayed di ff erentiation, which pushes generic products down the supply chain as much as possible, and allows the supply chain to more easily accommodate demand for

a variety of related products.

6. Implement VMI (Vendor Managed Inventory) strategies so that suppliers can be more responsive to changes in inventory levels.

7. Use an express delivery service such as UPS to reduce the transportation lead time.

8. Adopt new technologies such as machine automation to reduce the manufacturing lead time.

Question 5

1. The farmers prefer large and stable demand over time so that they can dedicate large portions of land to a particular product, e.g., wheat, corn, etc.

2. The manufacturing division likes long production runs with minimal number of setups and a low mix of cereal products which keep the production costs low.

3. The logistics division wants to ship full truck loads to reduce transportation costs.

4. The marketing division prefers a high product mix with short lead times. For marketing purposes, the ability to o ff er di ff erent types of cereal is crucial.

5. The distribution arm of the grocery chain wants to replenish stocks as quickly as possible while keeping inventory and transportation costs low.

6. The grocery store manager wants on-time delivery of a high variety of products with short notice in order to be able to quickly respond to a highly diversiTed end-customer demand.

Note that the upstream parties in the supply chain typically prefer stable demand with

a low mix while the more downstream parties prefer shorter lead times and a higher mix.

20

Chapter 5

Supply Chain Integration

Note: The solutions for this chapter are incomplete at this time. For more

complete solutions, please see the textbook web site.

Discussion Questions

Question 1

A push-based supply chain has following advantages: 1) It utilizes long-term forecast and planning; 2) It stores inventory in the system. If the products are generic, custom demand can be satisTed from inventory right away and customers waiting time is reduced.

A pull-based supply chains has following advantages: 1) It has minimal inventory in

the system. 2) It can better match supply and demand when products are di ff erentiated; 3) It reduces the reliance of production planning on forecast.

Question 3

The advantages of moving the push-pull boundary are as follows: 1) It increases the degree of risk pooling and therefore reduces the inventory level in the system; 2) It reduces the reliance of production planning on forecast.

The advantage of moving the push-pull boundary later are as follows: If the products

are generic, custom demand can be satisTed right away from inventory. It, therefore, shortens the customers. waiting time.

Question 4

1. Amazon: Amazon switched form pure pull to push and pull, because the sale volume has grown large. The boundary is at the their regional warehouses. This change is because

the large volume allows Amazon to aggregate demand across geographical areas.

2. Peapod: Similar to Amazon, Peapod moved form pure pull to push and pull by estab- lishing warehouses which serve demand aggregated over an area larger than traditional supermarkets. Delivery time constraint and service level are also reason cause Peapod moving to push-pull mode.

21

3. Dell: The push-pull boundary in Dell supply chain is at the assembly. Computer components are standard, their demands are aggregated over all Tnished products that require those components. They can be managed using push mode to take advantage

of risk pooling and economy of scale. Computers are customized according to the

conTguration speciTed by buyers, the assembly of computers should be managed in a

pull mode.

4. Furniture companies: The production is based on pull but delivery is push, because

the transportation cost for furniture is high and furniture companies need to aggregate demand over some period to take advantage of risk-pooling and economy of scale. Question 10

Consider Wal-Mart.

1. Cross Docking

Suppliers for nonperishable products such as beer, rice, and shampoo, for which the

total sale volume is large but demand at each individual stores is low, are suited to

a cross-docking strategy. These products can be cross-docked with other low-volume goods to create full-loaded truck for each store.

2. Direct Shipment

Suppliers for perishable and time sensitive products such as fruits and milk are suited

to a direct shipment strategy. Goods that are ordered by retailers in full truck loads

can also be shipped directly.

Case Discussion Questions — The Great Inventory Correction 22

Chapter 6

Strategic Alliances

Discussion Questions

Question 1

a. Consider a company for whom logistics is a core competency, and that has su ffi cent resources to implement the strategy.

b. Consider a company whose products are perishable, and for which environmental condi- tions must be tightly controlled during warehousing and transportation. (For instance,

a biotechnology or a pharmaceutical company.) In this case, the company may not

want to give up control of products during logistics operations in order to ensure their quality, and it may choose to acquire a logistics company with appropriate expertise.

c. Consider a company that has internal logistics expertise, and that is trying to expand

its operations into new markets. If the company is already resource-constrained, it

may make sense to develop the strategy in-house, but delegate speciTc operations to

third-party logistics providers.

d. Consider a new company that established its manufacturing operations recently, and is struggling to ramp-up its output. In this case, it may make sense for this company to

focus on design, manufacturing and sales operations of its products and outsource all activities related to transportation and warehousing of raw materials, and distribution

of Tnished goods.

Question 2

Logistics is a complex set of tasks that requires vast resources, analytical expertise, related software and a signiTcant amount of investment in information technology which goes out

of date very rapidly. Thus, unless logistics is a core competency of the company and it has resources to dedicate to it, it is di ffi cult to design and implement e ff ective logistics oper- ations. Therefore, companies are increasingly willing to outsource logistics operations to third parties who have the analytical expertise, necessary software and su ffi cient resources to keep their information systems up-to-date. In addition, since these third party logistics providers have several (or many) customers, they have su ffi cient economies of scale to make the necessary capital investments to operate an advanced logistics system.

23

Question 3

1. Quick response: In a quick response system, the retailer determines the order quantities and replenishment times, while suppliers analyze POS data to improve their forecasting

and production scheduling. This system could be preferred when the retailer-supplier relationship is new, and trust between the two parties has not been fully developed yet.

In this strategy, the retailer has complete control on its inventory, but helps suppli-

ers improve operations by providing POS data. Additionally, this type of partnership could be preferred if Tnancial and personnel resources to develop a more integrated relationship are not available.

2. Continuous replenishment: In a continuous replenishment system, vendors receive POS data and use these data to prepare shipments at previously agreed-upon intervals to maintain speciTc levels of inventory. This type of partnership is a system between quick response and VMI, because suppliers and buyers together agree on target inventory and service levels. It involves less risk for retailers than VMI, and typically leads to a more stable and long-term relationship between suppliers and retailers than quick response does.

3. In a vendor-managed inventory system, suppliers decide on the appropriate inventory level for each product and the appropriate inventory policies to maintain these levels.

The retailers give the vendors full authority to manage inventory replenishment. This system is more integrated than the previous two systems, and requires a high level

of trust between the supplier and the buyer. If implemented properly, VMI can lead

to more overall system savings than the other two types of partnerships. However,

VMI requires more commitment, and initially, signiTcant investment in information infrastructure, time and personnel.

Question 4

Information sharing in this case is most beneTcial if the production capacity of the supplier is tight. The supplier can use the weekly POS data to forecast the order size that will arrive at the beginning of next month, to adjust its production schedule accordingly given the tight capacity, and to reduce the risk of not being able to meet the demand.

Question 5

Initial VMI schemes in which ownership of goods transferred to the retailer when goods were delivered beneTted suppliers by giving them complete control of their system. Ad- ditionally, it also provided an incentive to the suppliers to ship as much inventory to the retailer as permitted under the contract. This was an important disadvantage of these contracts because the overall system proTt was not necessarily maximized.

The more recently developed consignment schemes have clear inventory and managerial cost reductions for the retailer since the supplier owns the goods until they are sold. However, this strategy still allows the supplier to manage its operations more e ffi ciently because it makes all the production and distribution decisions. Note that inventory holding and personnel costs at the supplier increase, and these issues must be addressed in the supply contract by sharing cost savings of the retailer with the supplier.

24

In general, both of these types of inventory ownership policies require signiTcant in- formation sharing and large technology investments. Also, note that in these policies the retailer does not have any control on its inventory any more, and trust issues must be resolved completely for this type of partnership to work out.

Question 6

Some of the following steps could have been taken to prevent the failure of the program: 1. In a VMI system, trust issues should be resolved at the very beginning during contract

negotiations. Additionally, communication channels must be open at all times to discuss any additional concerns that may arise. Clearly, these issues were not addressed in

su ffi cient detail at Spartan.

2. Spartan could have speciTed a test period for its suppliers, and after the test period the program could have been discontinued with unsuccessful suppliers.

3. Spartan could have collaborated with its suppliers to determine agreed-upon forecasts and help them resolve forecasting issues due to promotions.

4. The retailer-supplier partnership could have started with a continuous replenishment system which is less risky than a vendor-managed inventory system. Then, the VMI system could have been established based on this experience.

Case Discussion Questions — Audio Duplication Services, Inc. (ADS)

Question 1

ADS.s customers. customers, i.e., the national retailers, want to reduce inventory holding costs and expenses related to managing inventory by moving towards VMI agreements. Question 2

The most signiTcant impact on ADS.s business will be on its distribution functions be- cause it will have to ship directly to the individual stores instead of distribution centers. Transportation costs will increase due to the increase in the number of destinations. Also, depending on its agreement with the record companies, ADS may incur additional inven- tory holding costs because compact disks and cassettes will spend more time in its system. ADS should take this situation as an opportunity to re-design and streamline its op- erations and prepare itself for the general trend towards VMI in the industry. This may help ADS to gain a competitive advantage, and potentially increase its market share. Question 3

Logistics is not a core competency of ADS. Additionally, the management team of ADS must address more crucial issues such as the emerging media distribution business over

the Internet. Therefore, ADS should outsource its distribution functions to a third-party logistics provider in order to focus on issues threatening its core business.

25

Question 4

Under the proposed consignment scheme, inventory belongs to the suppliers until the products are sold. Under this scheme, it would be ine ffi cient and unreasonable if products were Trst delivered to distribution centers that belong to the retailers. This would add an unnecessary complexity to the system as to how goods in the distribution centers would

be handled and ultimately delivered to the individual stores. Additionally, by encouraging direct shipments, retailers can reduce the warehouse space they rent or own, and reduce costs further.

26

Chapter 7

Procurement and Outsourcing Strategies

Discussion Questions

Question 1

In order to assess the e ff ect of product life cycles on the make/buy framework developed in Section 7.3, we need to understand how product knowledge and capacity requirements evolve over the life cycle of a product. A typical product life cycle has several stages:

1. The product is newly introduced, and bought initially by a relatively small number of customers (early adopters). At this stage of the product life cycle, production level is low and capacity is usually not an issue. Also, quite possibly, there are problems in

the design and manufacturing of the product such that yield is low, and changes in the production processes are frequent. Under these conditions, the buy/make framework implies that a new product should not be immediately outsourced.

2. In the rapid adoption phase, demand for the product increases at an increasing rate. If this leads to tight production capacity, and the production processes are already stable, then outsourcing should be considered. It may even be the only choice to keep up with the increasing demand.

3. When the product reaches the maturity phase, i.e., when demand stabilizes over time, then the outsourcing decision should be re-considered under the framework discussed in Section 7.3. For instance, if earlier an integral product was outsourced due to capacity constraints, then the Trm should consider installing additional capacity to meet the stabilized demand, and manufacturing the product in-house.

4. When the product is approaching its end-of-life, outsourcing is a good option for both integral and modular products because the company should focus on new products. Question 2

This question is relevant for modular products for which only a subset of the components drive the customer.s purchasing decision. For instance, consider the PC market. In general, 27

the customers are primarily concerned with the CPU speed, the amount of memory, and the hard disk capacity when buying a PC. Typically, all other components of a PC, e.g., the motherboard, the sound card, the CD drive, cables, etc., are of secondary importance to most of the buyers.

In other words, the value proposition of a modular product depends on a few of its components, and we can expect that manufacturers focus their innovative e ff orts and new product introductions on this small set. Thus, it is crucial that the knowledge for these components is kept in-house. Under the buy/make framework developed in Section 7.3, this implies that the manufacturer should refrain from outsourcing key components of a modular product.

Question 3

In this case, the risk is high, but also the potential return is high. If the base commitment level is low, the option level is high, and the demand turns out to be higher than what the

《供应链管理》期末试卷A及答案

《供应链管理》课程期末试卷A 1．常见的供应链体系结构模型包括、和三种。2．供应链体系设计的内容包括、和。3．供应链合作伙伴关系的构建原则是、、。4．批发商在供应链结构中一般执行功能，其供应链结构一般取决于 的特征、生产商所选择的渠道、消费者的购买渠道以及它自身的。5．供应链环境下采购的新特点可以概括为、 、即“三个转变”。 6依据供应商分类矩阵，供应商类型有、、、商业型。7整合供应链总体绩效度量指标包括质量、、、资产四个方面。 二、单项选择题（每小题1分，共10分） 1.每一条供应链的目标是（）。 A.整体价值最大化 C.整体收益最大 2. 供应链管理的目标是（）。B.整体成本最小化D.整体资金规模大 A. 提高顾客的满意度 B.占领市场 C.集成化管理 D. 参与竞争 3.为了能使供应链具有灵活快速响应市场的能力，供应链在设计时应遵循（）原则。 A. 集优原则 B.简洁性原则 C.协调性原则 D. 动态性原则 4. 供应链合作伙伴关系的目的是（）。 A. 缩短采购提前期，提高供货的柔性 B. 加快资金周转 C.缩短供应链总周转期达到降低成本和提高质量的目的 D.减少供应商数目 5. 在供应链管理的模式下,采购活动是以（）方式进行的。 A. 订单驱动 B. 制造订单 C. 生产驱动 D.计划驱动 6. QR 是指在供应链中,为了实现共同的目标,至少在（）环节之间进行的紧密合作。 A. 三个 B. 所有节点 C. 两个 D. 四个 7. ECR的主要目标是( )。 A. 增加供应链各个环节的收益C. 缩短供应链各个环节的时间B. 降低供应链各个环节的成本D. 提高了供应链各个环节的服务 8. 供应商管理最主要的两个领域是供应商的选择和( ) A. 供应商的关系管理C. 供应商的成本管理 B. 供应商的目标管理D. 供应商的考核管理 9.供应链管理主要涉及四个领域：供应、生产计划、物流、需求，在这四个领域的基础上，我们可以将供应链管理细分为( )和辅助领域。 A.职能领域 B.服务领域 C.物流领域 D.管理领域

供应链管理的试题和答案

一、名词解释(每小题5分,共25分) 1.供应链 2.供应链管理 3.生产延迟 4.联合库存管理 5.ECR 二、填空题(每空3分,共30分) 1.供应链就是一个网链结构,由围绕核心企业的供应商、供应商的供应商与用户、用户的用户组成。其主要具有______、______、______与面向用户需求等特征。 2.在对供应链进行构建时应注意考虑________、________、________等方面的问题。 3.作业流程就是指进行一项或多项投入,以创造出顾客所认同的有价值产出的一系列活动。它可以分为________、________两部分。 4.所谓________,就就是向选定的若干个供应商发询价函,让它们报价,然后根据各个供应商的报价来选定供应商的方法。 5.从节点企业与节点企业之间关系的角度来考察,供应链网络结构主要包括链状结构、 ________、核心企业网状结构三种。 三、论述题(每小题12分,共24分) 1.请论述基于供应链的运输决策的要点有哪些？ 2、供应链中需求变异放大产生的原因就是什么？ 四、案例: 1、在快速响应用户需求的整个供应链上,产品分销环节的地位越来越重要。但就是,传统的分销与库存管理模式并不能满足这一要求。例如:在英国举办的98’供应链管理专题会议上,一位与会者提到,在她的欧洲日杂公司,从渔场码头得到原材料,经过加工、配送到产品的最终销售需要150天时间,而产品加工的整个过程仅仅需要45分钟。以美国食品业的麦片粥为例,产品从工厂到超级市场,途经一连串各有库房的批发商、分销商、集运人,居然要走上104天。 另有统计资料表明,在供应链的增值过程中,只有10%的活动时间就是产生增值的,其它90%的时间都就是浪费的。 请简述产生上述现象的原因并提供解决方案。(11分) 2、请阐述对供应链的理解。供应链有哪几种模式？U8与NC供应链分别就是在哪一个层次上工作？并描述二者的不同。(10分)

供应链管理模拟试题

供应链管理模拟试题一答案 答案： 一、名词解释 1、牛鞭效应：是由简述供应链采购的特点。于供应链的信息流从末端向源端传递时，信息扭曲会逐渐放大，导致需求信息的波动越来越大。这种信息扭曲的放大作用在图形显示上很像一条甩起的牛鞭，故称为牛鞭效应。 2、第三方物流：是指由与货物有关的发货人和收货人之外的专业企业,即第三方物流企业来承担企业物流活动的一种物流形态.。 3 、供应商管理库存(Vendor Managed Inventory,VMI)：是供应链管理实践的一种,它是指由供应商按照预期需求以及事先达成的最高和最低库存水平,代表买方组织对库存进行监督、规划和管理。 4 、客户关系管理：CRM的主要含义就是通过对客户详细资料的深入分析，来提高客户满意程度，从而提高企业的竞争力的一种手段。 5 、JI T：在精确测定生产各工艺环节作业效率的前提下按订单准确的计划，消除一切无效作业与浪费为目标的一种管理模式。 四、简答题 1、供应链管理的目标 供应链管理的短期目标为提高产能、减少库存、降低成本及减低产品销售循环所需之时间;而其长期目标主要为提高顾客满意度、市场占有率以及公司收益。 或这样答： 供应链管理就是指对整个供应链系统进行计划、协调、操作、控制和优化的各种活动和过程，其目标是要将顾客所需的正确的产品（Right Product）能够在正确的时间（Right Time）、按照正确的数量（Right Quantity）、正确的质量（Right Quality）和正确的状态（Right Status）送到正确的地点（Right Place）——即“6R”，并使总成本最小。 2、网络营销的特点 （1）．无限的运作时空; （2）．公平自由的竞争环境;（3）．便捷有效的沟通渠道;（4）．营销目标定位准确; （5）．经营成本降低; （6）．缩短供应链，提高经营效率;（7）．营销形式丰富多彩; （8）．高技术条件支撑的营销手段. 3、简述电子商务对物流的影响 电子商务时代的来临，给全球物流带来了新的发展，使物流具备了一系列的新特点： 信息化、自动化、网络化、智能化、柔性化。 4 、简述MRP的原理 MRP（物料需求计划）的基本原理有两条： （1）、从最终产品的生产计划（MPS）导出相关物料（原材料、零部件、组件等）的需求量和需求时间；（2）、根据物料的需求时间和生产（订货）周期来确定其开始生产（订货）的时间。 5、如何基于产品设计供应链? 5、对于功能性产品，企业的主要目标在于尽量减少成本，通常只需制定一个合理的最终产品的产出计划，协调顾客订单，生产和采购，使得链上的库存最小化，提高生产效率，缩短提前期，从而增强竞争力, 对于创新型产品，需要有高度灵活的供应链，对多变的市场做出迅速的反应，投资改善供应链的市场反应能力就成为必要之举。 五、计算题 永恒公司是制造工业产品的企业，每年需采购零件１０，０００只，购买价格为１６元，每次订购成本为１００元，每只零件保管费率为０.５元，求该零件经济订购批量，并求年订货次数和订货间隔期。 经济订购批量Ｑ＝５００（只） 年订购货物次数Ｎ＝Ｒ/Ｑ*＝１００００/５００＝２０（次）

供应链管理习题答案

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