Supply Chain and Distribution Strategy Assessment

Question 1 One Future Company is considering choosing one of the two distribution channels: long channels (consisting of at least 4 levels) and short channels (consisting of only 2-3 levels). Assuming that other factors, such as product characteristics and competitive characteristics to make the final decision. The market of the firm is a very large one that is widely and equally spread from the north to the south of Vietnam. Which distribution channels should the company apply? A. B. C. D. Long channels Short channels Long channels in the North and short channels in the South Long channels in the South and short channels in the North Question 2 Fill in the blanks with the suitable words: “In the light of supply chain disruption caused by crises that make customers hoard goods, the re-evaluation of … inventory is outlined.” A. Transit B. Just in case C. Decoupling D. Just in time Question 3 Which of the following is NOT a characteristic of a product focused strategy? A. B. C. D. Low-variety Continuous process Modular High-volume Question 4 Fill in the blank with suitable words: “In the … concept, the exact number of items is presented for picking, then the unit load of one product line is picked to waiting customer orders, and the picking continues until that line is exhausted.” A. Batch picking B. Pick-to-order C. Pick-by-line / Pick-to-zero D. Wave picking Question 5 A stationery company sells calculators to the LS&C office at $16 each. The marginal production cost for the stationery company is $3 per set. LS&C office prices the calculators to its customers at $35 and expects demand over the next two months to be normally distributed, with a mean of 9,000 and a standard deviation of 1,500. The LS&C office places a single order with the stationery company for delivery at the beginning of the two-month period. Currently, LS&C discounts any unsold calculators at the end of two months down to $9, and any calculators that did not sell at full price sell at this price. How many calculators should the LS&C office order? (Round the result to the nearest unit digit) A. 8,584 calculators B. 9,428 calculators C. 9,919 calculators D. 8,248 calculators Question 6 One Future Company sells electric gaming devices that require careful packaging during transit. The company uses the following materials for packaging, with data given in Table 1. The company’s employees get $1,500 per hour to operate the packing process, and it takes them 30 minutes to package each unit. The packaging equipment costs $200 per unit. The company delivers 300 units of a single product monthly. The company wants to optimize its packaging costs by using different packaging equipment, and the proposed cost for the new equipment is $150 per unit. Assuming that the cost of packaging materials and labour stays the same, what is the proposed total packaging cost, and how much can the company save per unit? Packaging materials Cost Corrugated boxes $5 per box Bubble wrap $2 per foot Tapes $0.50 per yard Labels $1 per label Table 1: The cost of packaging materials A. The proposed packaging cost is $272,550 and the company can save $15,000 per unit B. The proposed packaging cost is $287,550 and the company can save $50 per unit C. The proposed packaging cost is $272,550 and the company can save $50 per unit D. The proposed packaging cost is $287,550 and the company can save $15,000 per unit Question 7 Which of the following supply chain metrics is most useful for measuring customer satisfaction in a make-to-stock system? A. Inventory days of supply B. Fill rate by line item C. Asset turns D. Order fulfillment lead time Question 8 Match transportation networks with their characteristics: (1) Direct shipping (2) Direct shipping with milk runs (3) All shipments via Intermediate Distribution Center with storage (4) All shipments via Intermediate Transit Point with cross-dock a) No intermediate warehouse – Simple to coordinate b) Transportation choice best matches needs of individual product and store c) The quantity destined for each location is too small to fill a struck but multiple locations are close enough to each other such that their combined quantity fills the truck d) Increased inventory cost and handling at distribution center e) Highest coordination complexity f) Low inventory requirement and lower transportation cost through consolidation A. 1-a, 2-c, 3-d, 4-g B. 1-b, 2-e, 3-a, 4-c C. 1-g, 2-e, 3-d, 4-b D. 1-a, 2-e, 3-d, 4-c Question 9 How many of the following statements are true? (i) Some external factors that have an impact on shippers of freight when choosing the models of transport are: the basic infrastructure in the country, trade barrierss, export controls and licenses, law and taxation, and climate. (ii) When considering selecting a suitable mode of transport, a methodical selection process is not necessary. (iii) The four key stages in the selection process of transportation modes are: operational factors, characteristics of transport modes, consignment factors, and cost and service requirements. (iv) Customer characteristics do not have an impact on the choice of transportation modes. (v) Road freight provides door-to-door service. (vi) Sea freight generally requires single handling. A. 2 B. 5 C. 4 D. 3 Question 10 Which of the following supply chain metric is used to measure the time from when an order is placed to when it is received by the customer? A. B. C. D. Delivery performance Asset turns Order fulfillment leadtime Inventory days of supply Question 11 Company X has three electric power plants that supply the needs of four cities. Each power plant can supply the following numbers of kilowatt-hours (kWh) of electricity: plant 1 – 45 million; plant 2 – 32 million; plant 3 – 50 million. The lowest power demands in these cities (in kWh): city 1 – 20 million; city 2 – 35 million; city 3 – 30 million; city 4 – 25 million. The cost of sending 1 million kWh of electricity from plant to city depend on the distance the electricity must travel, as shown in the below table: From Plant 1 Plant 2 Plant 3 To City 1 $4 $3 $4 City 2 $5 $2 $6 City 3 $1 $4 $4 City 4 $3 $4 $5 Consider Xij = number of (million) kWh produced at plant i and sent to city j (for i = 1, 2, 3 and j = 1, 2, 3, 4). Which below is the objective function for solving the linear programming problem so as to minimize the cost of meeting each city’s electricity needs?