Written examination MTT 240 – Supply chain management

Time: Friday August 18th 2017, 08.00 – 13.00

Instructions:

· The examination has 6 questions – but you should only solve 5. Select 5 of the questions and
answer these – only 5 questions will be corrected.
If you answer more than 5 questions, only the first 5 (questions 1-5) will be corrected.
Maximal result is 50 points.

· Start every new question on a new sheet of paper.

· Answer the questions as informative, explicit, and well structured as you can (e.g. clear points
with explanations/discussions). Show the examiner that you have understood the content, not
only specific bullet points.

· If possible, illustrate your discussions with models, frameworks and figures.

· Write as clearly as possible.

· English dictionary is allowed.

· Write your anonymous code, personal identifier and page number on each page.

Good luck!
Andreas Norrman
Course responsible

1
Question 1:
The supply chain can be seen as a system with many interacting parts. The course has been
focusing on different Supply chain interface variables and their antidotes, according to the model
by Simatupang and Sridharan (2005).
a) Describe this model, and elaborate on the different antidotes. Give short examples
explaining the discontents that the model addresses. (6 points)
b) Van Ackere et al (1993) discussed the bullwhip-effect that you experienced in the Beer
Game. Explain what the bullwhip effect is, the main reasons behind it, and the two best
scenarios to handle it according to their analysis. (4 points)
(Totally 10 points)

Question 2:
It is very important to achieve strategic fit in your supply chain.

a) Describe, by using different frameworks from the course (lectures and literature, such as
Chopra & Meindl and Fisher), how you could develop strategic fit and alignment from
overall strategy down to configuration elements. (4 points)

b) Elaborate between major differences on the SC configuration level between a more cost
efficient and a more responsive supply chain. (4 points)

c) Order Winners and Order Qualifiers are important to understand when developing the SC
strategy. Illustrate the difference between OW and OQ by comparing them in a graph.
(2 points)
(Totally 10 points)

Question 3:
S&OP is a concept that has been around for some time – but has been increasingly popular the
last years within SCM, and major firms argue that it is a capability that must be improved.

a) Define S&OP and describe each of the major steps in an S&OP-process. (6 points)
b) Describe and reflect on how you worked with S&OP in the Fresh Connection-game and
how it developed over the game. Reflect on major similarities and/or differences between
how you worked with this process and what the theory proposes? (4 points)
(Totally 10 points)

2
Question 4:
Performance measurement is not an easy task in general, and even more difficult in an SC context.
Holmberg (2000) addresses problems and limitations of current measurement systems, and Harmon
(2003), and different lectures and Fresh Connection, have introduced you to SCOR.
a) Explain and discuss what SCOR is. (4 points).
b) There are a lot of different measurement problems in Supply chains, that e.g. Holmberg
(and others) highlights. Discuss how SCOR can (or cannot) support you in solving at least
four different SC measurement problems. (3 points)

Both our guest lecturer Dr Kohn, and the article by Pagell & Wu (2009), also pointed at
Performance measurement as a very critical aspect to focus on to be able to develop Sustainable
Supply Chain Management (SSCM). This was also an area where companies were struggling.

c) Elaborate, in line with this article and lecture, on at least 3 issues related to why companies
are struggling with measurement of Sustainable SCM. (3 points)
(Totally 10 points)

Question 5:
There are different ways to create incentives in supply chain, both by contract and other ways.
a) How would you, with a mathematical formula, define the following types of contracts:
– Wholesale price
– Franchise fee/2-part tariff
– Revenue sharing contract
Describe shortly an example, related to practice, for each of the contract types (4,5 p)

b) What kind of principal/agency problem can “social control”/”group incentives” help you to
handle, and in what situation do this kind of incentives work especially good?
Exemplify with a “supply chain” example! (3,5 p)

c) Barilla tried to implement VMI (JIT distribution) with its independent distributors, but to
be able to implement VMI Barilla had to change the incentives in the interface to
distributors. Why, and in what way (roughly) had the incentives to change? (2 p)
(Totally 10 points)

3
Question 6:
Logisticians should not only suggest changes, they must also lead transformation and change in
many cases. Authors like Sabri & Verma (2015) (in other courses you might have had Kotter
(1995)) suggest stepwise models (both those 2 models have 8 steps each) for successful change.
• Describe a transformation/change model, including their steps and what they mean. (6
points)
• You have got the assignment to transform a supply chain, and the project will impact
people outside the “logistics domain” in your company. Elaborate on each of the steps in
your model above, what you could do as the change leader to better lead the
transformation. (You should show that you have understood a transformation model and
can translate it to actions). (4 points)

(Totally 10 points)