Task One

# 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?

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.

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. 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)

(30 MARKS) There are Four (4) essay questions in this question paper. Answer One (1) essay question only. All essay questions carry equal marks. 1. The strategic fit of supply chain management refers to the alignment of a company's supply chain strategy with its overall business strategy to achieve competitive advantage. However, achieving and maintaining this strategic fit can be challenging for companies due to various factors. Examine how companies can overcome FIVE (5) major challenges to achieving and maintaining strategic fit of supply chain management? (30 Marks) 2. Businesses that can optimize the drivers of supply chain management and align their supply chain strategy with their overall business strategy can achieve a competitive advantage and drive long-term success. Analyse FIVE (5) key drivers of supply chain performance, and how can companies optimize them to achieve competitive advantage? (30 Marks) 3. Choosing the right supply chain configuration is critical to achieving operational efficiency, customer satisfaction, and long-term success. Distinguish FIVE (5) different supply chain configurations that companies can adopt to achieve operational and strategic goals, and how can they evaluate which configuration is best suited for their business? (30 Marks) 4. Lean supply chain approach is a strategy for managing the supply chain that emphasizes on value creation. Examine FIVE (5) ways how companies implement a lean supply chain approach to optimize their operations and achieve a competitive advantage, and what are the key strategies for successful implementation? (30 Marks)

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)

Cincinnati Seasonings SCM Globe Final Individual Project Overview and learning objective: The personal experiences with simulation and modeling exercises are unique to an individual decision-maker. The goal of the Cincinnati Seasonings exercise is not the outcome. Achievement is measured within the learning and accomplishments as a student evaluates options, selects an action plan, monitors results, and makes further adjustments. What you will DO! Complete the Cincinnati Seasonings Case Study through the Week 11 Instructions. You can disregard some of the reporting guidelines and use the questions as a guideline for your thought process as you complete the simulation. I. Introduction A. Overview of Cincinnati Seasonings - provide a narrative about the company and its business goals and objectives. This information is based upon the case study introduction in the online guide (https://www.scmglobe.com/cincinnati-seasonings/). B. The initial supply chain scenario- describe the supply chain as of Week Two when the simulation exercise began. This includes the starting parameters and network configuration. II. Accomplishments (these are the aspects reflecting your own contributions towards stabilizing and improving the supply chain) A. What went well - what aspects of the simulation results were favorable? These were your major strides forward. B. How could you have improved- are there areas within the simulation that you could have done better as you altered the supply chain? These include stumbles and falls. III. Comparison A. Week 2 compared to Week 9 -(Note: These are the suggested changes in the Cincinnati Seasonings Case - for instance, week 9 instructions start on page 52!) Compare and contrast the initial networkconfiguration and parameters with what you completed after executing the Week 9 changes. The growth and complexity are aspects that should be highlighted B. What if (select one of the items below and run the simulation to report on the outcome): As a final exercise, perform one of the following after discussing the Week 9 network and describe the results. 1. What would happen if you began using larger trucks that had higher operating costs per kilometer but could also carry twice as much cargo? 2. The Cincinnati factory is located on rail lines; what would happen if you located the warehouses so that they were also located near rail lines? Could you lower transport costs? 3. Would it make sense to use air transportation to move products in this supply chain? 4. Is it better to expand the existing factory to support demand from the new stores or better to keep existing factory as is and build a new factory closer to the new stores? IV. Conclusion A. If you were to do the simulation series over, what would you have done differently? Now that the simulation is completed, you may have done one or more of the intermediate assignments differently. B. Recommendation: How could this learning experience be improved? SCM Globe simulation software itself is under continuous improvement with the objective of enriching a student's experience. The software is not perfect. Changes to the Online Guide (https://www.scmglobe.com/online-guide/), guidance by technical support,operation of the simulation, or other aspects can and should be improved. This is each student's opportunity to critique the learning experience so that it can be improved for future courses. You will present the answers to the above questions using a PowerPoint (or equivalent type) software: Your slides should include: 1) Cover Page: Title, your name, SCM 5410, Winter 1, year 2) Table of Contents: Bulleted list (Include all slides below) 3) 4) Executive Summary and Interpretation of Supply Chain Initial Situation of Cincinnati Seasonings Company - background and the baseline information (include the following): Product Price Weight Size 5) Slide on the Baseline Model of the Supply Chain (including screen shots such as) for a) Beginning facilities and on hand inventory levels Facilities Demand Production 20 0 70 U Location Ft. Wayne Indianapolis Louisville Distribution Cent. Factory 100 0 0 500 4,000 700 b) Beginning Fleet of delivery vehicles - insert screen shot c) Beginning delivery routes and frequencies - insert screen shot (Example below) On Hand Max Storage 800 850 300 1,000 1,500 15,000 3,000 0 0 350 6) Any Assumptions 7) (there will be a number of slides - initially you will include Indianapolis Louisville and Fort Wayne. Research - Indianapolis 501 Virginia Ave 501 Virginia Ave, Indianapolis, IN 46200 Contact Listing Broker Summary Spaces Retail For Lease $20.00 /at/your 601 Virginie Ave blackline Photo 1/2 9 Map Save Listing Bldg. Details Description Print Broker Information Company Listing Summary Total Space Available: Rental Rate Min. Divisible Max, Contiguous Listing Type Property Type: Lot Size: Date Available Listing 10: 1.500 SF 5,000 BF 9,400 SF $20.00 /at/year $1.67 /st/month 34,156.33-56,073.33 /month For Lease Retail Indianapolis 3950 East Southern Ave Indianapolis, IN 46203 4.9 miles from town center Population - 1,953,961 0.65 AC Daylen Heaty immediately NP19072103 8) Research - Summary of Population and Demand - create a table with the correct information (numbers will be different) - see below: Research - Population & Demanc Louisville 1,262,261 2013 MSA Population Distance From Downtown (mi) Demand Address Average Price/SQ ft in Ares Price per SQ M /month Price per Month Regression coefficient Regression Average Lead Time (days) Demand hetween Lead Time Safety Stock (95% service level) ROP Actual (to make it work) Safety Stock Max Storage Capacity (Compare to calculated ROP) Indianapolis 1,953,961 3050 E Southern Ave. Indianapolis, IN 46203 46203 4.9 70 $20/sf/year $1.67/per month http://www.cityfeet.com/cont/F orLease/LN19072103/501- Virginia-Avenue-Indianapolis-IN- $17.98 $4,493.93 5697 6639 1.50 105 116 220 140 250 255 Cabel St. Louiville, 3710 N CI KY 40206 Wayne, IN $21/sf/year $1.75/per month 20, change wait time to 15 2.2 100 http://www.cityfeet.co m/cont/ForLeace/LN18 552792/1600-River- Shore-Drive-Louisville- KY-40206 $18.84 $5,368.50 5738 1.00 100 165 265 200 285 $16/sf/ye $1.33/per http://ww nt/ForLea 1-E-Colise Wayne-IN Used research data to calculate rent costs. forecast daily dem 9) Then record the initial simulation run with each stoppage and your solution using the table and screen shots: See example on next page Day Problem Facility Resolution Comments 2 No Must stay Ft. Change space Wayne drop to in accordance with demand