Supply Management Integration
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Total Questions : 167
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A warehouse manager notices that there has been a constant shortage of 4K TVs for the last few months. An investigation finds that the TVs have been stolen, even though warehouse access is strictly controlled by employee ID badge. In this situation, the warehouse manager's FIRST course of action should be to
A manufacturing firm redesigns its premier product to benefit from material standardization. The change will entail re-tooling costs. The firm conducts a cost benefit analysis on four possible options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations involving different materials:
Option 1Option 2Option 3Option 4
Re-tooling Costs (Year 1)$0$800,000$1,000,000$1,200,000
Material Costs
Year 151,000,000$700,000$650,000$600,000
Year 2$1,100,000$750,000$700,000$650,000
Year 3SI,200,000$800,000$750,000$700,000
Year 451,300,000$850,000$800,000$750,000
Year 551,400,000$900,000$850,000$800,000
Total$6,000,000$4,000,000$3,750,000$3,500,000
Labor Costs
Year 1$1,000,000$700,000$650,000$600,000
Year 2$1,100,000$770,000$715,000S660,000
Year 3$1,210,000$847,000$786,500$726,000
Year 4$1,331,000$931,700$865,150$798,600
Year 5$1,464,100$1,024,870$951,665$878,460
Total$6,105,100$4,273,570$3,968,315$3,663,060
In addition to this, there will be a cost of $3.5 million in lost production during Year 1, should any of the re-tooling options (2, 3, or 4) be selected.
The firm wants to rank the options in order of financial preference, from the best option to the worst. Based on this information, how should the four options be ranked?
A company requires a physical tracking system for goods received and handled in its warehouse. The firm's executive management requests a report to justify funding for the tracking system. Which of the following is the PRIMARY point the report should address?
DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:
MonthJulAugSepOctNovDecJanFeb
Unit Sales1001502006001,4002,2004,00010,000
Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.
There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:
•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business
•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business
•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business
Two of these companies—Supplier X and Supplier Y—are minority businesses.
Given this situation, DEF should contract with
XYZ Company is a manufacturer that buys raw materials from Supplier
A.
In the past several years, Supplier A has experienced increasingly unpredictable order patterns from XYZ, which has necessitated it carry more inventory as safety stock. A meeting with XYZ reveals that this is because XYZ frequently stocks out of items its upstream customers require, and thus orders more than it needs in order to ensure that it is covered. Which of the following BEST describes the problem within this supply chain?A manufacturer has historically ordered fasteners utilizing monthly fixed order quantities. The firm wishes to explore the feasibility of using economic order quantity (EOQ), and determines that the EOQ is less than the supplier’s quoted price break. Which of the following is the BEST course of action for the firm to take?
An organization purchases materials beyond current and anticipated requirements in expectation of a price increase or shortage, in the hope that it will profit from the sale of the materials at a later date. This describes which of the following buying strategies?
PQR, Inc. produces office supplies for big box retailers. This is a highly competitive market and the requirement for maintaining a continuous inventory of product for retailers is a high priority for PQR. Recently, the firm experienced shipping delays from overseas suppliers. Which of the costs associated with shortages would be MOST critical for PQR?
A cross-functional team evaluates the feasibility of a new product line for a company. This type of study is BEST described as
TESTED 16 Sep 2024
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