M&IS 44062-001 Supply Chain Management

M&IS 44062-001 Supply Chain Management Examination I - Fall 2015 Dr. A. L. Guiffrida Directions: 1) The exam is open book, open notes. 2) In completing the examination, students may work individually or in groups. If working in a group the maximum group size is five students. For a group examination submission, submit one examination solution document for the group with the names and emails addresses of each group member identified. All students in the group will receive the grade that is assigned to the single examination solution document that is submitted. 3) Examination solution documents may be submitted in either hardcopy or electronic form. Hardcopy: submit your hard copy in the lecture classroom at 5:30 PM on Monday November 2, 2015 or submit your hard copy during my office hours on Monday November 2, 2015 from 4:30 – 5:30 PM at my office A411. Electronic copy: submit as a PDF file to my email [email protected] by 5:30 PM on Monday November 2, 2015. Hardcopy and electronic copy answer submission documents must have the following cover page: M&IS 44062-001 Supply Chain Management Examination I - Fall 2015 Dr. A. L. Guiffrida Submitted by Name; email address (If a group submission please list names & emails vertically) 4) Your examination solution document must be typed. When answering a question clearly label the question number in your answer submission document. 5) The points per question are listed for each question. 6) You do not need to submit any supporting Excel files that you constructed in answering a given examination question – just present your solution results. Be sure to keep a permanent copy of all Excel files you created in answering questions for your future reference and for consideration for partial credit. Question 1 (40 points) In your role as the supply chain analyst in your firm, you are responsible for the delivery performance of three product lines that are sold to a downstream customer. The product lines are named Line 1, Line 2 and Line 3 and historical data on the past fifty deliveries for each product line is found in the Excel file Delivery Data for Question 1. Assume that the delivery times are referenced from a delivery start date of zero and that in any given future time period an equal number of deliveries of each product line will be made to the customer. The downstream customer (who commands all the power in the supply chain) has imposed on your firm delivery requirements in the form of a delivery window with financial penalties for early and late delivery. The customer imposed delivery requirements that you will have to operate under are: Date Effective: June 1, 2016 W_E = 14 days; W_L = 17 days; C_E = $500 per day early; C_L = $2500 per day late. Date Effective: June 1, 2017 W_E = 15 days; W_L = 16 days; C_E = $1000 per day early; C_L = $5000 per day late. Prepare an analysis for your supply chain manager as to the impacts of the impending delivery windows and financial penalties. Remember, managers do not like to read voluminous pages of verbal discussion concerning an analysis. Instead, they prefer to read short paragraphs explaining the key concerns and main points of the analysis with tables and graphs/figures illustrating and visually supporting the key information within the analysis. In your analysis: - Prepare a set of tables and supporting graphs/figures which demonstrate how, based on the historical delivery performance of product lines 1, 2 and 3, the level of delivery performance that would result under the customer’s stated June 1, 2016 and June 1, 2017 delivery requirements if no improvement in current delivery performance is made. Use the following two delivery KPIs: i) the on time delivery fulfillment KPI, and ii) the Total Expected Cost (TEC) KPI as the basis of your analysis. - Prioritize by product line the order in which you direct continuous improvement activities to meet the impending customer delivery requirements and provide justification as to how you selected the order. Remember: all tables must have titles and subheading descriptions; all graphs/figure must have titles, legends and each axis labeled in meaningful units. Question 2 is on the next page. Question 2 (30 points) The capacity feasible revised Master Schedule and Bill of Materials for the end item Wooden Table are presented below. Master Schedule for Wooden Kitchen Table (weeks 9 through 16) Week 9 10 11 12 13 14 15 16 Units of End Item: Wooden Table 150 0 250 180 0 0 160 145 Bill of Materials for Wooden Table The raw material requirements to manufacture one unit of each part of the Wooden Table are: Part Number of board feet per unit Type of wood Weight in pounds per board foot T225 10.0 Ash 3.4 C712 3.6 Pine 2.2 G701 4.8 Pine 2.2 Wood for parts T225, C712 and G701 are sourced from an outside vendor. Determine the sourcing requirements in number of board feet and weight in pounds for each part for: i) each week of the Master Schedule, and ii) the total eight week portion of the Master Schedule. Question 3 on the next page. Question 3 (30 points) In today’s competitive global marketplace, supply chain executives are actively concerned with the resiliency of their supply chains. Stanford University Professor Hau Lee has coined the phrase “The Triple A” supply chain [Agility; Adaptability and Alignment] as a framework to understand supply chain operations. As the new hire in supply chain management, the supply chain manager has tasked you with the preparation of a briefing memo on the how and the why of the Triple A supply chain framework. Prepare a briefing memo in which you explain how the Triple A framework relates to supply chain resiliency. Remember, managers do not like to read voluminous pages of verbal discussion. Present key concepts using bulleted points and use short paragraphs to support the key bulleted concepts.