INSE 6300/4/UU-Quality Assurance in Supply Chain Management (Winter 2008) Mid-Term Exam

Transcription

1 INSE 6300/4/UU-Quality Assurance in Supply Chain Management (Winter 2008) Mid-Term Exam Professor: J. Bentahar ate: Thursday, April 03, 2008 uration: 90 minutes NAME: I: INSTRUCTIONS: Answer all questions on these sheets in the space provided, and if you run out of space, please use the back of the page. The use of calculators is permitted. This exam is 11 pages long, including the cover page. Check that your copy is complete. This exam is out of 80 points. This is a closed book examination. 1

2 Part I. True or False and Multiple Choices (17Pt.) 1- There is no difference between supply chain and supply network. a- True b- False 2- Matching supply with demand is not an important issue when designing distribution networks. a- True b- False 3- Product design and supply chain process design are parts of quality of conformance in the supply chain quality diagram. a- True b- False 4- There is no difference between seasonal inventory and cycle inventory a- True b- False 5- Inventory results from a mismatch between supply and demand a- True b- False 6- istributor Storage with Carrier elivery has the following characteristics (You can select more than one answer): 1. Inventory is not held by distributors but by manufacturers 2. Short response time 3. ow facility costs 4. Easy return handling 5. High transportation costs 2

3 7- Some steps in the basic approach to demand forecasting are (You can select more than one answer): 1. Understand the objectives of forecasting 2. Integrate network planning and transportation planning 3. Selecting warehouse locations and capacities 4. Understand and identify customer segments 5. etermine the appropriate forecasting technique 6. Establish performance and error measures for the forecast 8- The systematic component in trend-corrected exponential smoothing (Holt s model) includes (You can select more than one answer): 1. evel 2. Trends 3. Seasonality 4. Forecast error Part II. iscussion and Technical Questions (38Pt.) 1- What are the main sources of uncertainty in supply chain (explain each source)? 3

4 2- iscuss the different forecasting methods (characteristics of each method, advantages, drawbacks, situations where they can be used). 3- Explain what is pipeline inventory? 4

5 4- What are the different forms of mismatch between supply and demand? 5- To evaluate the standard deviation of demand during lead time, we have two formulas. Explain in which case we can use formula (1) and in which case we can use formula (2). Explain also the symbols used in each formula. (1): = (2): = + s 5

6 6- Explain how the initial level 0 is evaluated in the simple exponential smoothing method. 7- The following formula is used to evaluate the level in the simple exponential smoothing method. Explain the formula and discuss it according to the value of α. t 1 n t t+ 1 = α(1 α) t+ 1 n + (1 α) 1 n= 0 6

7 8- Explain how we can improve product availability while reducing safety inventory? iscuss the possibilities using the formulas in Appendix. 7

8 Part III. Exercises (25Pt.) Exercise 1 (12Pt.) Consider the following demand data. Use the simple exponential smoothing with α = 0.1 to estimate demand for the next four weeks. Week emand

9 Exercise 2 (4Pt.) B&R is a company having weekly demand for HP printers. We assume the demand is normally distributed with a mean of 210 and a standard deviation of 60. HP takes two weeks to supply B&R, which targets a cycle service level of 95 percent and monitors its inventory continuously. (NORMSINV(0.95) = ) a- Calculate the safety inventory should B&R carry. b- Calculate the reorder point 9

10 Exercise 3 (9Pt.) 8- Explain in terms of probability the meaning of CS, and then give the formula used to calculate it using the distribution function. Explain this notion graphically assuming that the distribution is normal (draw the graph and explain it). 10

11 Appendix = = ss = F S 1 ( CS) ROP = + ss CS = F( ROP,, ) = + s ESC fr = 1 Q ss ss ESC = ss[1 F ] S + f S C C C n = i= 1 n i= 1 2 i ss = F 1 ( CS) s i = = C C t+1 = αt+1 + (1-α)t 11