Global Operations & Supply Chain Managements

The assignment is 2 parts:
1. (10) short answer questions (75words each)
2. (7) one page answer questions (275 up to 400 if needed)

all requeired knowledge on 6 cases :
Zara”, “LiFung”, “Foxcon”, “7eleven”,”Dabbawallah”, and”Benihanna”

the cases along with discussion PPT will be provided as references for general questions that are not associated with cases.

 

Part A

10 Questions, each 3 points

 

Please mark the correct answer for each question (only one, the most important one) and provide a short explanation. Note that your explanation is critical.  If you have a good explanation, you can still get full or partial credit for the “wrong answer,” and if your explanation is off, you lose points even for the “right answer.” Please stay within the specified word limits; they are more than enough.

 

 

 

1. An emergency room plans to add capacity in two phases. After the first phase the average capacity utilization is expected to drop from 95% to 85%, and after the second phase from 85% to 75%.  Which of the following statements is true?
2. First phase will result in a greater reduction in waiting time by patients
3. Second phase will result in a greater reduction in waiting time by patients
4. Each phase reduces the waiting time by the same amount

Why?  (Please less than 75 words)

 

2. Which supply chain is more “adaptable”:
   1. Zara
   2. 7-Eleven Japan
   3. Li and Fung
   4. Dabbawallah

Why?  (Please less than 75 words)

 

3. All other things equal, aiming for higher capacity utilization becomes more justified when:
4. The number of products produced by the system becomes larger
5. Inventories in the system are reduced
6. Both a and b
7. None of the above

Why?  (Please less than 75 words)

 

4. Most important reason contributing to the “alignment” of the Dubbawallahs supply chain is:
   1. The hub-and-spoke and relay system they use to move the dabbas from home to office and back
   2. The visible and standardized codes they use on the dabbas
   3. The cohesiveness of the groups and sharing of profits
   4. The fact that most Dabbawallahs operate like “entrepreneurs”

Why?  (Please less than 75 words)

 

5. Which of the following is true:
6. Foxconn has a more “adaptable” supply chain than Li and Fung
7. Foxconn factories add more value in their factories than those factories working for Li and Fung (in their factories).
8. a and b
9. None of the above

Why?  (Please less than 75 words)

 

6. In Benihana, assuming demand is greater than the restaurant’s capacity, which of the following is true:

 

1. Batching reduces the need for more space in the bar
2. Batching reduces demand variability
3. Batching reduces capacity utilization in dining hall
4. Batching reduces the effect of demand variability on process variability

Why?  (Please less than 75 words)

 

7. HP sells its products through Office Depot and buys disk drives from Seagate. Komag is a component supplier to Seagate.  All four companies keep substantial inventory.  What would be the relationship in the variability of orders (demand) received by each of these companies in this chain?
   1. It is likely to be practically the same at Komag and Office Depot
   2. It is likely to be higher in Komag than Office Depot
   3. It is likely to be higher in Office Depot than in Komag
   4. It is not possible to predict

Why?  (Please less than 75 words)

 

8. The underwriting department in a bank has a team of four experts fully dedicated to examining loan applications. The team is considering a new approach for processing these applications: putting them in weekly batches instead of working on them as they arrive.  In other word, accumulate the loan applications received during the week and work on them starting on the following Monday.  This change would not affect the amount of time that should be spent on each application. Assuming the demand for loans in this bank does not change, the new approach is likely to
   1. Reduce the team’s workload (reduce their “capacity utilization”)
   2. Reduce the average cycle time for processing loan applications
   3. Do both a and b
   4. Do neither a nor b

Why?  (Please less than 75 words)

 

9. Which of the following practices of 7-Eleven Japan helps it estimate how much of the sale of a product is due to “substitution demand”? (All the following may help; the question is which one helps the most.)
   1. Collecting extensive demographic background data about customers at checkout counter
   2. Changing the layout of the store during the day
   3. Ordering small quantities frequently
   4. Changing orders to suppliers frequently
   5. Tracking hourly sales

Why?  (Please less than 75 words)

 

1. Which of the following is the most important reason why Zara needs buffer capacity in its own factories. (Again, note that the question asks for which is the most important reason.)
   1. It wants to be able to produce small batches of many products
   2. It wants to be able to produce only a limited quantity of many products
   3. It is the only way it can operate with negative working capital
   4. It is difficult to forecast demand for many of its products

Why?  (Please less than 75 words)

 

_______________________________________________________________________________

 

Part B

Seven questions, each 10 points

 

 

1. What are likely effects of the larger container ships on global supply chains? Please answer by using the format of bullets with short explanations and limit your answer to 250

 

2. Using the Benihana simulation (you still have access to it), find out what happens when you increase the size of the bar. Explain what you observe and most important reasons why this happens.  Again, please use the format of bullets with short explanations and limit your answer to 3 bullets and don’t exceed 250 words.

 

3. The following table summarizes the results of a “due diligence” performed for the potential acquisition of a candy producer. Nestle is very interested in knowing the “real story” behind the difference in the profitability of the company between 2011 and 2012.  What were the main reasons? You have been hired as a consultant and the table below shows the result of your TFP (Total Factor Productivity) analysis.

 

1. Please summarize how much of the increase in profitability is coming from price changes, how much from volume changes, and how much from productivity changes.
2. Give three specific reasons (3 bullets with short explanation, maximum 250 words) why you would, or you would not recommend the acquisition.

 

 

 

4. What are the possible long term pitfalls in relying on companies like Foxconn to produce the company’s products?

 

For this question, you can go up to 400 words. Again, please use bullets with short explanations.  Cite specific examples (name the companies and the products–the more the better) to illustrate, support, or clarify your arguments. Note the question says “companies like Foxconn”–not just Foxconn itself.

 

5. Zara’s model for managing it design, production, distribution and retail operations has been studied by its competitors, but many of them don’t seem to be able to copy it. What is holding them back? State the three most important reasons and explain why.

 

To the extent possible, use bullets with short explanation. Refer, as much as possible, to the concepts, cases, and models discussed in this course and limit your answer to 400 words.

 

6. There have been many stories in the media in recent months about how some companies are considering “re-shoring,” and “in-sourcing.” If you were a consultant to one of these companies, what would be your advice? Are there general rules (beyond the very obvious ones) that can guide the company for making such decisions?

 

To the extent possible, use bullets with short explanation. Refer, as much as possible, to the concepts, cases, and models discussed in this course and limit your answer to 400 words.

 

7. Assume a family company in Brazil is asking for your advice for how to expand its exports. The company has two divisions: one is producing basic garments (like T-shirts, simple dresses, and jeans) and the other small electrical components (like switches, sensors, and power supplies that go into home appliances, lighting systems, and other similar electric devices). These are medium size operations run completely separately and independently (their only they have in common is that they are owned by the same family). The family has heard that the competitive game is increasingly moving from “my company versus your company” to “my supply chain versus your supply chain.”  They are seeking you advice specifically for the implication of this trend as they consider how to expand exports from each of these divisions.  In particular, what, if anything, they should do differently in each division.

 

Please limit your answer to 400 words. Write as though you are addressing the board of this company. To the extent possible, use bullets with short explanation.  Draw on what you learned about which functions or roles are better served usually by a company in an emerging economy, and explain the reasons behind your suggestions and arguments.

 

 

 

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