2 Practica 2 Supply Tree

GLOBAL SUPPLY CHAIN MANAGEMENT
2016-1
TEST 2
Instrucciones:
 Al término del examen se devolverán las hojas de enunciados.
 El uso de útiles es personal. No se permite el uso de ningún tipo de apuntes.
 Redacte todas sus respuestas en el cuadernillo.
 Escriba con lapicero y no con lápiz
 Trabaje con orden y limpieza.
 Durante la evaluación, los celulares deben permanecer apagados.
 Duración: 60 minutos
 Fecha: 28/06/2016
Note: This test will be written and answered in English, please write clearly and concise. No more than 50
words per question. Pay attention to proper grammar and spelling. Total marks: 100
PART I: ELECTIVE QUESTIONS 50 marks
Answer the following questions:

1. TRUE OR FALSE 25 marks
1. The cost of overselling is denoted by Co and is the loss incurred by a firm for each
unsold unit at the end of the selling season.
Answer: False
Difficulty: Easy
2. The cost of understocking is denoted by Cu and is the margin lost by a firm for
each lost sale because there is no inventory on hand.
Answer: True
Difficulty: Moderate
3. Lead time is the gap between when an order is placed and when it is received.
Answer: True
Difficulty: Easy
4. The coefficient of variation measures the size of the relative certainty of cycle
inventory.
Answer: False
Difficulty: Easy
5. The optimal lot size is referred to as the economic order quantity (EOQ). It is denoted
by Q * and is given by the equation: Q* = 2DS/hC.
Answer: True
2. MULTIPLE CHOICE QUESTIONS 25 marks
1. Whether the optimal level of product availability is high or low depends on

where a particular company believes they can
a. minimize cost.
b. maximize revenue.
c. maximize profits.
d. maximize product availability.
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2016-1
e. all of the above

Answer: c
2. The key factors that influence the optimal level of product availability do not
include
a. the cost of overstocking the product.
b. the cost of stocking the product.
c. the cost of understocking the product.
d. All of the above are key factors.
e. None of the above are key factors.
Answer: b
3. The margin lost from current as well as future sales if the customer does not return
should be included in
a. the cost of overstocking the product.
b. the cost of stocking the product.
c. the cost of understocking the product.
d. the cost of overselling the product.
e. the cost of underselling the product.
Answer: c
4. Which of the following is not a situation involving the trade-off between the cost of
overstocking and the cost of understocking?
a. seasonal products where all leftover items must be disposed of at the end of
the season
b. continuously stocked items where demand during stockout is backlogged
c. continuously stocked items where demand during stockout is lost
d. continuously stocked items where demand during stockout is redirected
e. none of the above
Answer: d
5. Lead time is the gap between

f. when an order is placed and when it is received.
g. when an order is received and when it is put away.
h. when an order is received and when it is used.
i. when an order is acknowledged and when it is received.
j. none of the above
Answer: a
Difficulty: Easy
PART II: COMPULSORY QUESTIONS 50 marks
1. WalMart is planning to open their first store in Perú. You are the Supply Chain
Manager of Walmart. What aspects related to the Global Supply Chain Management
(GSCM) are in consideration before opening the store? 10
marks
2. What is a SCM disruption? State 5 risks for the disruption of a Peruvian SCM
10
marks
2
2016-1
1. Natural Disasters (Earthquakes, storms….)

2. Not enough workforce
3. Products lost
4. Traffic
5. Transportation problems
6. Employees strike
7. Fires
8. Politics / corruption
9. Economic crisis
10. Terrorism
11. Epidemies
12. Electric Blackouts
13. Wars
14. Chemical spills / nuclear accidents
15. Inflations
16. Explosions (gas)
17. Shortage of resources (raw materials)
18. No Insurances
19. New barriers
20. Legal / Tax changes
21. Bankrupcy
3. State 3 disadvantages of becoming global in the Company of your final course

Project 10 marks
• The biggest disadvantage of global supply chain management is the heavy

investment of time, money, and resources needed to implement and overlook the
supply chain.
• The decision to outsource a production facility or call center lowers the cost of
doing business for a company using global supply chain management, but the
decision to outsource or not can lead to consumer backlash.
• Inefficient and undersized transportation and distribution systems.
• Market instability.
3
2016-1
• Integrating the supply chain and choosing the correct suppliers is much more
difficult than one can imagine.
• Not only do companies have to strongly consider price and quality, but they also
have to make sure that all the organizations are willing to cooperate to benefit the
group.
• Managerial styles, objectives, and goals must have a strategic fit between all
companies involved and power must be evenly distributed throughout the supply
chain or the businesses will not benefit from the advantages of global supply
chain management.
• When entering the global market, businesses need to be aware that the gains may
not be seen in the short term. It may be many years before they start reaping the
rewards of their efforts.
• Another disadvantage is that they have to hire additional staff to help launch
their companies in the global markets they expand into.
• Companies usually have to modify their products and packaging to suit the local
culture, preferences and language of the new market.
• Travel expenses are sure to increase for the administrative staff, as they will now
be expected to travel all over the world to oversee their business outlets in other
countries
4. About the Betapharm case; 10

marks
a) What do you think is the worst problem related to the GSCM?

b) What about the employees’ loyalty?
c) What does the company need to do to sell more?
5. Bill of Material Exercise. Find the value of each letter given the available
inventory 10
marks
Beggining Inventory Available

X 5
B 6
C 0
D 10 X= ; B= ; C= ;D= ; E= ; F= ;
E 8
F 8
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2016-1
X= 8; B = 10; C = 8; D = 20; E = 98; F = 8
Beggining
Inventory
Available
X 5 (13-5) We need to make 8 units of X

B 6 We need to have 16 units and we already have 6, so we need to make 10 units of B
C 0 We need to make 8 units of C
D 10 We need to have 30 units of D (10 units of Bx 3) so we need to make 20 units of D
E 8 We need to have 10 units of E
We need to have 16 units of E (8 units of C x 2)
We need to have 80 units of E (20 units x 4)
So we need to make (16+10 + 80 -8) = 98 units of E
F 8 We need to have 16 units of F (8 units of C x 2) so we need to make 8 units of F

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GLOBAL SUPPLY CHAIN MANAGEMENT

PART I: ELECTIVE QUESTIONS 50 marks

Answer the following questions:

2. MULTIPLE CHOICE QUESTIONS 25 marks

1. Whether the optimal level of product availability is high or low depends on

e. all of the above

5. Lead time is the gap between

PART II: COMPULSORY QUESTIONS 50 marks

1. Natural Disasters (Earthquakes, storms….)

3. State 3 disadvantages of becoming global in the Company of your final course

• The biggest disadvantage of global supply chain management is the heavy

4. About the Betapharm case; 10

a) What do you think is the worst problem related to the GSCM?

Beggining Inventory Available

X= 8; B = 10; C = 8; D = 20; E = 98; F = 8

X 5 (13-5) We need to make 8 units of X

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