Supply Chain Management Midterm Exam — Questions

Questions in this section focus on how a firm manages its network and relationships. Network Design

A) Compare the total cost of the old push model vs. the new responsive model. Include inventory holding cost (25% of unit cost), markdown losses (40% of revenue lost for unsold goods), and freight. Use these assumptions: supply chain management midterm exam questions

Define safety stock and give the standard formula for safety stock when demand during lead time is normally distributed. Explain each term. Questions in this section focus on how a

For the redesign: “Never have a single source for mission-critical goods. Build a ‘redundancy fund’ equal to 5% of procurement budget. And require every supplier to publish live, audited shift logs to a blockchain—no anonymity, no excuses.” Include inventory holding cost (25% of unit cost),

When answering essay questions, referencing these standard frameworks can strengthen your response: The 5 Components

The bullwhip effect occurs when small fluctuations in demand at the retail level cause progressively larger fluctuations upstream (wholesaler, distributor, manufacturer). Order batching, price fluctuations, and lack of information sharing are the main drivers.