1. What is supply chain management? Contrast it with business logistics management.
9. Suggest some products that benefit significantly from increased time and place value.
12. a. From a logistics-production cost standpoint, should the shirts be produced in Taiwan?
b. What additional considerations, other than economic ones, might be considered before making a final decision?
7. Describe the principle of differentiated distribution. Explain how it is illustrated in the following situations:
a. Total distribution costs are minimized if back orders on field warehouse inventories are filled from plant inventories. Premium transportation is used to ship back orders directly from plant to customers.
b. The product items stocked in a warehouse are grouped so that different stock availability levels are set for each of the groups.
c. All products are group supply chain managemented according to an ABC classification scheme, where A items have high sales volume. A items are stocked in field warehouses, B items are stocked in regional warehouses, and C items are stocked only at plant locations.
13. The traffic manager of the Monarch Electric Company has just received a rate reduction offer from a trucking company for the shipment of fractional horsepower motors to the companys field warehouse. The proposal is a rate of $3 per power motors to the companys field warehouse. The proposal is a rate of $3 per hundred (cwt). if a minimum of 40,000 pounds is moved in each shipment. Currently, shipments of 20,000 pounds, a rate of $9 per cwt. applies.
To help the traffic manager make a decision, the following additional information has been gathered:
Annual demand on warehouse 5,000 motors per year
Ware replenishment orders 43 orders per year
Weight on each motor, crated 175lb per motor
Standard cost of motor in warehouse $200 per motor
Stock replenishment order handling costs $15 per order
Inventory carrying costs as a percentage of average values on hand for a year 25 percent per year
Handling cost at warehouse - $0.30 per cwt.
Warehouse space - unlimited