SunOil, the vice president of supply chain, decides to view the worldwide demand in terms of five regions-North America, South America, Europe, Africa, and Asia. The data collected are shown in the table. Supply region N. America S. America Europe Asia Africa Demand (M units) Demand region Production & Transportation Cost (SK/ M units) Fixed Low Fixed High costs capacity costs capacity (M units) (SK) (M units) 81 101 N. America S. America Europe Asia Africa (SK) 130 115 6,000 10 9,000 20 6,750 20 119 111 6,500 10 9,750 117 98 100 4,500 10 102 20 115 90 59 74 4,100 10 6,150 105 71 4,000 10 142 103 6,000 12 14 16 7 92 77 105 125 100 8 108 95 The vice president wants to know what the lowest-cost network should look like. 20 20

SunOil, the vice president of supply chain, decides to view the worldwide demand in terms of five regions-North America, South America, Europe, Africa, and Asia. The data collected are shown in the table. Supply region N. America S. America Europe Asia Africa Demand (M units) Demand region Production & Transportation Cost (SK/ M units) Fixed Low Fixed High costs capacity costs capacity (M units) (SK) (M units) 81 101 N. America S. America Europe Asia Africa (SK) 130 115 6,000 10 9,000 20 6,750 20 119 111 6,500 10 9,750 117 98 100 4,500 10 102 20 115 90 59 74 4,100 10 6,150 105 71 4,000 10 142 103 6,000 12 14 16 7 92 77 105 125 100 8 108 95 The vice president wants to know what the lowest-cost network should look like. 20 20

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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.
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 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 d. The desire by the different links in the chain to manage their production rates and inventory levels sensibly.
Bamburi Cement is a cement manufacturing company that has been operating in Kenya for more than ten years. The supply chain of Bamburi includes the suppliers and customers. Effective management of the supply chain relationships is a critical factor in ensuring increased profits by Bamburi. Required; Explain two ways that adoption of a modern Enterprise resource planning software such as Microsoft Navision would enable Bamburi to improve the supply chain relationships with the suppliers and customers. (b) Explain two ways that a well-developed and designed Accounting system would add value for an organization such as Strathmore University.
Explain the Wilson approach in supply chain management. What are its key principles?
Adelie Enterprises has decided to dropthe international supplier from consideration. Furthermore,Adelie has decided to order boxes in lots of 10,000 to op-timize the use of available storage space at its distributionfacility. To more completely consider the cost/volume trad-eoffs associated with selecting the local or national supplier,management has collected the following data. Adelie servicesits customers 250 days per year. a. On purely a total cost basis, which supplier should beselected if there is low demand for Adelie’s new service;which supplier should be selected under moderatedemand assumptions; and which supplier should beselected under high demand?b. Which supplier achieves the lowest expected cost ifthe probability of low demand is 35 percent, moderatedemand is 45 percent, and high demand is 20 percent?
1) There are three different ways to coordinate supply chain participants. Explain them. 2) Explain the tradeoffs between a short term planning horizon and a long term planning horizon. 3) Distinguish natural vs. special variations.
McMillan Sugar Limited is a supplier of sugar and other derivatives. The company wasestablished in 1931 in Eastern Europe and has since expanded to other parts of Europe, Asiaand America. The company has been growing steadily. From 1940 to 1985, the companyregistered 1.5 Trillion US dollars in revenues. These revenues were mainly generated throughthe genius design of its supply chain. The company managed to secure a constant supply ofsugar cane by co-opting major sugar cane producers (farmers) to become shareholders in thecompany. This enabled the company to control the inflation of sugar cane price. Indeed, themajor farmers were not willing to increase the price of sugar cane, which would have anadverse effect on the company in which they were shareholders. McMillan Sugar Limitedbecame a leading brand in the sugar industry and in 2003 it was listed as the best performingcompany in the Eastern Europe. This success came as result of various strategic decisions.Firstly, the company…
McMillan Sugar Limited is a supplier of sugar and other derivatives. The company wasestablished in 1931 in Eastern Europe and has since expanded to other parts of Europe, Asiaand America. The company has been growing steadily. From 1940 to 1985, the companyregistered 1.5 Trillion US dollars in revenues. These revenues were mainly generated throughthe genius design of its supply chain. The company managed to secure a constant supply ofsugar cane by co-opting major sugar cane producers (farmers) to become shareholders in thecompany. This enabled the company to control the inflation of sugar cane price. Indeed, themajor farmers were not willing to increase the price of sugar cane, which would have anadverse effect on the company in which they were shareholders. McMillan Sugar Limitedbecame a leading brand in the sugar industry and in 2003 it was listed as the best performingcompany in the Eastern Europe. This success came as result of various strategic decisions.Firstly, the company…
Put this in other words. Analyze and elaborate this one. In the intricate orchestration of supply chain management, predictive analytics emerges as an indispensable conductor. Drawing upon colossal datasets from multifarious sources, predictive analytics unfurls a tapestry of precise supply and demand prognostications, meticulous inventory optimization, seamless logistics orchestration for punctual deliveries, anticipation of equipment maintenance exigencies, and the nimble adaptation to unforeseen contingencies. In this ever-evolving landscape, predictive analytics has metamorphosed into a critical lever for cultivating an agile and resilient supply chain, warding off disruptions, and laying the foundations for sustainable success.
Q1: You are a distribution center manager; you understand distribution facilities would provide a variety of services according to the requirements of the supply chain. Your manager requested you to do the training for your team, it should discuss the primary functions of DC, what are they? Q2: When goods need to be transported, the supply chain manager can choose from five modes of transportation: truck, rail, air, water and pipeline. What are the main functions, advantages and disadvantages of each basic mode? Giving goods example under each mode.