Supply Chain Management Midterm Exam Questions →

. Facing a sudden surge in demand for the new "Apex X" smartphone,

An electronics retailer faces a steady annual demand (

) from the manufacturer is fixed at 9 days. If the distributor wants to maintain a Cycle Service Level (CSL) of 95%, what should their safety stock and reorder point (ROP) be? Find the standard deviation of demand during lead time ( σLsigma sub cap L

Exam Question: If the average inventory is $185,000 and the holding cost factor is 25%, what is the total cost? (Answer: ).

The forecast for June was 500 units. Actual demand in June was 550 units. Use a smoothing constant ($\alpha$) of 0.2 to calculate the forecast for July. supply chain management midterm exam questions

| Concept | Formula | When to use | | :--- | :--- | :--- | | | ( \sqrt(2DS)/H ) | Balancing order cost vs. holding cost | | ROP (Variable demand) | ( d \times L + (Z \times \sigma_LTD) ) | When to reorder | | Critical Ratio | ( Cu / (Cu + Co) ) | Perishable goods / One-time buys | | Utilization | Flow rate / Capacity | Finding bottlenecks | | Little’s Law | Inventory = Throughput x Flow time | Linking time and quantity |

The manufacturer should implement a Postponement (Delayed Differentiation) strategy. Framework and Mechanics:

Q*=2DSHcap Q raised to the * power equals the square root of the fraction with numerator 2 cap D cap S and denominator cap H end-fraction end-root

He wrote:

Ordering Cost: ( 11.2 \times 50 = $560 ) Holding Cost: ( (447/2) \times 2.5 = 223.5 \times 2.5 = $558.75 ) Total: ( \approx $1,118.75 )

Aligning competitive strategy (what customers value) with supply chain strategy (what the network does best).

N=DQ=10,000707.11≈14.14 orders/yearcap N equals the fraction with numerator cap D and denominator cap Q end-fraction equals the fraction with numerator 10 comma 000 and denominator 707.11 end-fraction is approximately equal to 14.14 orders/year The company will place approximately . Question 4: Reorder Point (ROP) with Safety Stock

Consolidating inventory into one central facility lowers overall facility costs (economies of scale, lower safety stock). However, it increases transportation costs because products must travel longer distances to reach final customers. Find the standard deviation of demand during lead

To prepare for a Supply Chain Management (SCM) midterm, you should focus on the strategic integration of business processes from raw materials to final consumption

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Explain the trade-offs between a centralized warehousing network and a decentralized warehousing network regarding inventory holding costs and customer service levels.