ECB3OSM
Operations and Supply
Chain Management
Homework
,Contents
Remarks ................................................................................................................................................... 3
Problem set Chapter 1 – Introduction to Supply chains in the 21st century ............................................ 4
Question 1 – Supply chain management ............................................................................................. 4
Question 2 – Supply chain management tools .................................................................................... 4
Question 3 – Supply chain nodes ........................................................................................................ 4
Question 4 – Supply chain objectives ................................................................................................. 4
Question 5 – Mass production ............................................................................................................. 4
Question 6 – Selling a product versus selling a service ...................................................................... 5
Question 7 – Mass customization ........................................................................................................ 5
Question 8 – Franchise versus affiliate ............................................................................................... 5
Question 9 – Largest franchises .......................................................................................................... 5
Problem set Chapter 2 – Collaborative Forecasting ................................................................................ 6
Question 1 - Forecasting...................................................................................................................... 6
Question 2 – Logarithmic forecasting ................................................................................................. 9
Problem set Chapter 3 – Capacity Planning and Facility Location ....................................................... 10
Question 1 – Capacity planning ........................................................................................................ 10
Question 2 – Store locations .............................................................................................................. 12
Question 3 – Average walking distance ............................................................................................ 12
Question 4 – Major cost categories ................................................................................................... 12
Question 5 – Usage of aggregate planning ........................................................................................ 12
Problem set Chapter 4 – Production Planning ....................................................................................... 13
Question 1 – Production planning ..................................................................................................... 13
Question 2 – Forward buying ............................................................................................................ 14
Question 3 - Advantages and disadvantages of a flexible workforce ................................................ 14
Question 4 – Demand patterns .......................................................................................................... 14
Question 5 – Pricing promotions ....................................................................................................... 15
Question 6 – Common parts across many products .......................................................................... 15
Question 7 – Coordination among supply chain partners.................................................................. 15
Problem set Chapter 5 – Inventory management in a Deterministic Scenario ...................................... 16
Question 1 – Economic order quantity .............................................................................................. 16
Question 2 – Joint order frequency ................................................................................................... 16
Question 3 – Quantity/volume discounts .......................................................................................... 17
Question 4 – Optimizing EOQ .......................................................................................................... 17
Problem set Chapter 6 – Inventory management under uncertain conditions ....................................... 19
Question 1 – Stock-outs .................................................................................................................... 19
Question 2 – Fill Rate and CSL......................................................................................................... 19
Page | 1
, Question 3 – Fill Rate and CSL using Solver.................................................................................... 19
Question 4 – Safety inventory due to Inventory Centralization ........................................................ 20
Question 5 – Calculating the Reorder Point (ROP)........................................................................... 20
Problem set Chapter 7 – Risk Sharing and Sourcing ............................................................................ 21
Question 1 – Product differentiation ................................................................................................. 21
Question 2 – Value of postponement ................................................................................................ 21
Question 3 – Tailored postponement................................................................................................. 21
Question 4 – Different profit margins ............................................................................................... 21
Question 5 – Costs of Overstocking & Understocking ..................................................................... 21
Question 6 – Risk-sharing Strategies between Supplier and Customer ............................................ 22
Question 7 – Quantity Flexibility Contracts ...................................................................................... 24
Question 8 – Multiple models ........................................................................................................... 25
Problem set Chapter 8 – Asset Mobility and Infrastructure for Supply Chains in the 21st century ...... 26
Question 1 – Vertical movement ....................................................................................................... 26
Notes.................................................................................................................................................. 27
Question 2 – Pure public good .......................................................................................................... 27
Question 3 – Accounting for congestion ........................................................................................... 27
Question 4 – Toll expressway ........................................................................................................... 28
Problem set Chapter 9 – Distribution and Routing networks ................................................................ 29
Question 1 – Search & Travel Dimension ......................................................................................... 29
Question 2 – Shortest Path Algorithm ............................................................................................... 31
Question 3 – Decision Variables ....................................................................................................... 31
Question 4 – Lowest cost through Optimal Distribution Path........................................................... 32
Question 5 – Maximum Flow ............................................................................................................ 33
Problem set Chapter 10 – Revenue Management and Optimizing Capacity Usage.............................. 34
Question 1 – Optimal number of Overbookings ............................................................................... 34
Question 2 – Painting Firm ............................................................................................................... 34
Question 3 – Profit maximization...................................................................................................... 35
Question 4 – Individual Pricing versus Coordinate Pricing .............................................................. 36
Problem set Chapter 11 – Managing Queues and Bottlenecks in in a Supply Chain ............................ 37
Question 1 – Delays in the execution of supply chain planning or operations.................................. 37
Question 2 – Major causes of delays ................................................................................................. 37
Question 3 – Risk propagation .......................................................................................................... 37
Question 4 – Structural bottleneck .................................................................................................... 38
Question 5 – Common queue disciplines for a service ..................................................................... 38
Question 6 – Primary goal of managing bottlenecks ......................................................................... 38
Question 7 – Service Time Distributions .......................................................................................... 39
Page | 2
Operations and Supply
Chain Management
Homework
,Contents
Remarks ................................................................................................................................................... 3
Problem set Chapter 1 – Introduction to Supply chains in the 21st century ............................................ 4
Question 1 – Supply chain management ............................................................................................. 4
Question 2 – Supply chain management tools .................................................................................... 4
Question 3 – Supply chain nodes ........................................................................................................ 4
Question 4 – Supply chain objectives ................................................................................................. 4
Question 5 – Mass production ............................................................................................................. 4
Question 6 – Selling a product versus selling a service ...................................................................... 5
Question 7 – Mass customization ........................................................................................................ 5
Question 8 – Franchise versus affiliate ............................................................................................... 5
Question 9 – Largest franchises .......................................................................................................... 5
Problem set Chapter 2 – Collaborative Forecasting ................................................................................ 6
Question 1 - Forecasting...................................................................................................................... 6
Question 2 – Logarithmic forecasting ................................................................................................. 9
Problem set Chapter 3 – Capacity Planning and Facility Location ....................................................... 10
Question 1 – Capacity planning ........................................................................................................ 10
Question 2 – Store locations .............................................................................................................. 12
Question 3 – Average walking distance ............................................................................................ 12
Question 4 – Major cost categories ................................................................................................... 12
Question 5 – Usage of aggregate planning ........................................................................................ 12
Problem set Chapter 4 – Production Planning ....................................................................................... 13
Question 1 – Production planning ..................................................................................................... 13
Question 2 – Forward buying ............................................................................................................ 14
Question 3 - Advantages and disadvantages of a flexible workforce ................................................ 14
Question 4 – Demand patterns .......................................................................................................... 14
Question 5 – Pricing promotions ....................................................................................................... 15
Question 6 – Common parts across many products .......................................................................... 15
Question 7 – Coordination among supply chain partners.................................................................. 15
Problem set Chapter 5 – Inventory management in a Deterministic Scenario ...................................... 16
Question 1 – Economic order quantity .............................................................................................. 16
Question 2 – Joint order frequency ................................................................................................... 16
Question 3 – Quantity/volume discounts .......................................................................................... 17
Question 4 – Optimizing EOQ .......................................................................................................... 17
Problem set Chapter 6 – Inventory management under uncertain conditions ....................................... 19
Question 1 – Stock-outs .................................................................................................................... 19
Question 2 – Fill Rate and CSL......................................................................................................... 19
Page | 1
, Question 3 – Fill Rate and CSL using Solver.................................................................................... 19
Question 4 – Safety inventory due to Inventory Centralization ........................................................ 20
Question 5 – Calculating the Reorder Point (ROP)........................................................................... 20
Problem set Chapter 7 – Risk Sharing and Sourcing ............................................................................ 21
Question 1 – Product differentiation ................................................................................................. 21
Question 2 – Value of postponement ................................................................................................ 21
Question 3 – Tailored postponement................................................................................................. 21
Question 4 – Different profit margins ............................................................................................... 21
Question 5 – Costs of Overstocking & Understocking ..................................................................... 21
Question 6 – Risk-sharing Strategies between Supplier and Customer ............................................ 22
Question 7 – Quantity Flexibility Contracts ...................................................................................... 24
Question 8 – Multiple models ........................................................................................................... 25
Problem set Chapter 8 – Asset Mobility and Infrastructure for Supply Chains in the 21st century ...... 26
Question 1 – Vertical movement ....................................................................................................... 26
Notes.................................................................................................................................................. 27
Question 2 – Pure public good .......................................................................................................... 27
Question 3 – Accounting for congestion ........................................................................................... 27
Question 4 – Toll expressway ........................................................................................................... 28
Problem set Chapter 9 – Distribution and Routing networks ................................................................ 29
Question 1 – Search & Travel Dimension ......................................................................................... 29
Question 2 – Shortest Path Algorithm ............................................................................................... 31
Question 3 – Decision Variables ....................................................................................................... 31
Question 4 – Lowest cost through Optimal Distribution Path........................................................... 32
Question 5 – Maximum Flow ............................................................................................................ 33
Problem set Chapter 10 – Revenue Management and Optimizing Capacity Usage.............................. 34
Question 1 – Optimal number of Overbookings ............................................................................... 34
Question 2 – Painting Firm ............................................................................................................... 34
Question 3 – Profit maximization...................................................................................................... 35
Question 4 – Individual Pricing versus Coordinate Pricing .............................................................. 36
Problem set Chapter 11 – Managing Queues and Bottlenecks in in a Supply Chain ............................ 37
Question 1 – Delays in the execution of supply chain planning or operations.................................. 37
Question 2 – Major causes of delays ................................................................................................. 37
Question 3 – Risk propagation .......................................................................................................... 37
Question 4 – Structural bottleneck .................................................................................................... 38
Question 5 – Common queue disciplines for a service ..................................................................... 38
Question 6 – Primary goal of managing bottlenecks ......................................................................... 38
Question 7 – Service Time Distributions .......................................................................................... 39
Page | 2
