Supply Chain Management Exam III
PLEASE ANSWER ALL QUESTIONS, EACH IS WORTH 10 POINTS.
*****PENALTY FOR UNTYPED ANSWERS: (-20 POINTS).
*****PENALTY FOR EVIDENCE OF TEAM ANSWERS: (-100 POINTS)
Supply Chain Management Exam III
1a. Why is cost/benefit evaluation important for logistics and supply chain design?
transportation, higher inventory and/or expanded number of warehouses.
3a. Distinguish between reliability and character-based trust. Why is character-based trust critical in
collaborative relationships?
4a. Briefly discuss the three objectives for developing and implementing performance measurement system.
Performance measurement system?
6a. Describe some of the logistics and supply chain challenges related to security, regulatory and compliance.
QUESTIONS 7-10.NO POINTS FOR ANSWERS ONLY, MUST SHOW COMPUTATION.
7a. Suppose fixed costs research and development, production equipment, and nonrecurring
introductory advertising and distribution expenses for a new cake mix are estimated to be
$75,000 per year. If the item sells for $6.00 per case and variable costs of labor and materials
are$3.50 per case. Compute the break-even volume.
distribution center estimates average inventory levels at 500. Based on this average inventory
level, what is the annual inventory turn rate?
8a. Suppose that X is a random variable equal to property losses from hurricane and that Y has the
Following Probability distribution:
$100,000 with a probability of 0.02
X = $200,000 with a probability of 0.06
$0 with a probability of 0.92
What is the expected value of hurricane losses or expected?
has the following probability distribution:
$80,000 with a probability of 0.05
$60,000 with a probability of 0.25
A = $40,000 with a probability of 0.35
$12,000 with a probability of 0.20
-$12,000 with a probability of 0.15
What is the expected value of profits?
9a. Use the following product information to compute the impact of price on demand and revenue:
Product Price (P) Demand (Q) Variable Cost Revenue Variable Cost Profit
A $200 1320 $90 ______ ______ _____
B $300 1020 $90 ______ ______ _____
C $400 780 $90 ______ ______ _____
D $500 600 $90 ______ ______ _____
E $600 480 $90 ______ ______ _____
Variable Cost (VC), Total Cost (TC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Average
Total Cost (ATC), Marginal Cost (MC).
Output VC TC AFC AVC ATC MC
should Jangson Group locate their subsidiary?
IMPORTANT FACTOR CHINA SINGAPORE INDONESIA
LOCATION WEIGHTS SCORES SCORES SCORES
FACTORS (SUM TO 1) (1-100) (1-100) (1-100)
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Labor Cost 0.20 100 40 90
Proximity to market 0.15 100 60 80
Supply Chain 0.25 80 80 60
Compatibility
Quality of Life 0.30 70 90 60
Stability of 0.10 80 100 50
Government
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Supply Chain Management Exam III
Must show computations. No points for answers only.
UNIVERSITY SCHEDULED DATE & TIME: 15/12/2020 TIME: 8:00 PM
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Supply Chain Management Exam III