Supply Chain Analytics

Week 6, 2020

1. Which of the following is not essential for flexibility in a supply chain?

(a) Low cost
(b) Adaptable
(c) Agility
(d) Alignment

2. Flexibility in supply chain will results in …….

(a) Higher customer satisfaction
(b) Fewer defect
(c) Higher customization
(d) All of the above

3. In a supply chain, 4 manufacturing locations and 7 retail locations are available. Each manufacturing
locations can supply “m” units per year and each retail location can sell upto “r” units per year.
Manufacturing location are m1, m2, m3 and m4 while retail locations are r1, r2, r3, r4, r5 , r6 and r7.
The objective is to minimize the total cost of transportation. How many decision variables will be
there in this modelling activity?
(a) 28
(b) 8
(c) 5
(d) 3

4. In a supply chain, 2 manufacturing locations and 4 retail locations are available. Each manufacturing
locations can supply “m” units per year and each retail location can sell upto “r” units per year.
Manufacturing location are m1, and m2 while retail locations are r1, r2, r3, and r4.
If x11, x 12 etc are the units shipped from first manufacturing location to first retail location, units
shipped from first manufacturing location to second retail location etc., and similarly cost of
shipping one unit from a manufacturing location to a retail location is c11 , c12 etc., what is the
objective function minimizing the total cost of transportation?
(a) Minimize (C11X11 + C12X12 + C22X22 + C21X21)
(b) Minimize (C11 + C12 + C13 + C14 + C21 + C22 + C23 )
(c) Minimize (C11X11 +C12X12 + C13X13 + C14X14 + C21X21 + C22X22 + C23X23 + C24X24)
(d) Minimize ( C11 + C12 + C13 + C14 + X11 + X12 + X13 + X14 + C21 + X 21 + C22 + X22 + C23 + X23 + C24 + X 24)

5. In a supply chain, 2 manufacturing locations and 4 retail locations are available. Each manufacturing
locations can supply “m” units per year and each retail location can sell upto “r” units per year.
Manufacturing location are m1, and m2 while retail locations are r1, r2, r3, and r4.
 If x11, x 12 etc are the units shipped from first manufacturing location to first retail location, units
shipped from first manufacturing location to second retail location etc., and similarly cost of
shipping one unit from a manufacturing location to a retail location is c11 , c12 etc., what is the
expression for quantity to be shipped from first manufacturing location?
(a) C11X11 + C12X12 + C13X13 + C14X14≤ mr
(b) X11 + X22 + X33 + X44 ≤ m
(c) X11 + X12 + X13 + X14 ≤ m
(d) None of the above

6. In a supply chain, 2 manufacturing locations and 4 retail locations are available. Each manufacturing
locations can supply “m” units per year and each retail location can sell upto “r” units per year.
Manufacturing location are m1, and m2 while retail locations are r1, r2, r3, and r4.
If x11, x 12 etc. are the units shipped from first manufacturing location to first retail location, units
shipped from first manufacturing location to second retail location etc., and similarly cost of
shipping one unit from a manufacturing location to a retail location is c11 , c12 etc., what is the
expression for quantity which can be received at second retail location?
(a) X21 + X22 + X23 + X24 ≤ m
(b) C11X12 + C22X22 ≤ mr
(c) X12 + X22 ≥ r
(d) X12 + X22 ≤ r

7. “When Dell changed the model of online to retail outlets.” Which of the following characteristic of
flexibility is applicable to Dell?
(a) Adaptable
(b) Agility
(c) Alignment
(d) None of the above

8. Which of the following is not a supply chain risk to be considered during network design?
(a) Forecast risk
(b) Political risk
(c) Inventory risk
(d) Capacity risk

9. Which of the following is true?

(a) Working capital requirement decreases in case of offshoring.
(b) Stock outs may increase in case of offshoring.
(c) Minimum order quantity decreases in case of offshoring.
(d) None of the above

10. Which of the following is true?

(a) Inventory holding cost is not a driver of inventory risk.
 (b) Exchange rate risk is a driver of disruptions.
(c) Rate of product obsolescence is a driver of inventory risk.
(d) None of the above

1. A 2.D 3.A 4.C 5.C 6.D 7.A 8.B 9.B 10.C

Solution

3. There will be decision variables such as units to be shipped from one manufacturing location to one
retail location. Since 4 manufacturing locations and 7 retail locations are there, total 4 x 7 = 28 decision
variables will be there.

4. Cost of moving from one manufacturing location to one retail location will be product of number of units
to be shipped and cost of shipping one unit.

Following combination is useful to understand various terms

Manufacturing Location Retail Location Cost of transportation

1 C11X11
2 C12X12
1
3 C13X13
4 C14X14
1 C21X21
2 C22X22
2
3 C23X23
4 C24X24
Total Cost to be minimized C11X11 +C12X12 + C13X13 + C14X14 + C21X21 + C22X22 + C23X23 +
C24X24

5. Maximum which can move from any manufacturing location is “m” units. Units which go from 1st
manufacturing location to 1st, 2nd, 3rd and 4th retail locations will be X11, X12, X13 and X14 respectively.

Therefore constraint will be X11 + X12 + X13 + X14 ≤ m

6. Maximum which can be received by a retail location is “r” units. Any retail location will received from two
manufacturing locations. These quantities will be X12 and X22.

Therefore constraint will be X12 + X22 ≤ r