Supply Chain Management Midterm Exam Questions [patched] -

Midterms often include a procedural section where you must calculate specific supply chain metrics. 1. Calculating Total Annual Inventory Cost

At EOQ, annual ordering costs equal holding costs. The total minimized cost is . Question 4: Safety Stock and Reorder Point (ROP)

TC=(10,000447.21×50)+(447.212×5)TC equals open paren the fraction with numerator 10 comma 000 and denominator 447.21 end-fraction cross 50 close paren plus open paren 447.21 over 2 end-fraction cross 5 close paren

: Planning, sourcing, manufacturing, delivery, and returns management. Strategic Models supply chain management midterm exam questions

“Mr. Kim,” she said softly. “Did you find the answer you were looking for?”

Balances holding costs and ordering costs to find the optimal order size.

Leo decides to move some production to a foreign country. He knows Offshoring will lower labor costs but increase the risk of delays and higher freight costs. He uses Discounted Cash Flow (DCF) to see if the move makes financial sense over time. Midterms often include a procedural section where you

Each stage in the supply chain performs its own forecasting based on the orders received from its immediate customer, rather than actual consumer data. This distorts the true market demand.

"Compare and contrast a responsive supply chain strategy with an efficient supply chain strategy. Provide an industry example for each."

An item has an annual demand of 10,000 units. The ordering cost is $50 per order, the unit cost is $100, and the annual carrying cost rate is 25%. If the order quantity is 1,000 units, calculate the total annual cost. Calculation: Step 2: Calculate Annual Carrying (Holding) Cost Calculation: Step 3: Calculate Total Annual Cost 2. Inventory Turns and Days of Supply The total minimized cost is

“A child’s lemonade stand has daily demand uniformly distributed between 10 and 30 cups. Lemons cost $0.50 each (1 lemon per cup). Sugar costs $0.02 per cup. Cups cost $0.05 each. Selling price: $2.00 per cup. Unsold lemonade must be discarded at end of day. However, the child’s mother offers a ‘distress option’: any unsold lemons can be returned at $0.25 each, but only if the child purchases a ‘salvage membership’ for $2.00 per week.

EOQ=2DSH=2×20,000×15010=6,000,00010=600,000≈774.6 unitsEOQ equals the square root of the fraction with numerator 2 cap D cap S and denominator cap H end-fraction end-root equals the square root of the fraction with numerator 2 cross 20 comma 000 cross 150 and denominator 10 end-fraction end-root equals the square root of the fraction with numerator 6 comma 000 comma 000 and denominator 10 end-fraction end-root equals the square root of 600 comma 000 end-root is approximately equal to 774.6 units The optimal order quantity is . 2. Calculate Total Annual Cost (TC):

Understanding how small fluctuations in retail demand amplify as they move upstream toward manufacturers and suppliers. Category 1: Conceptual & Analytical Questions Question 1: Fisher's Framework Matrix

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