PROBLEM 1 Checkboxes: pints posse ets en) Concerning materia equrnents planing (MR, whch ofthe folowing statements are true? [MBP establishes production ates, workforce sis an inventory lvels er 3-18 months. “The bit of materais helps to project the needs, n terms of component, fora production io of wparcular assem oF sassemaiy "Mab takes he Master Production Schedule (NPS) and explodes Ita datalea proaucton/pocurement schecules of a Components ana aw materials. MiP systems are typically stochastic. Nona ofthe above. ‘conceming Supaly Chain Finance, whin ef the folowing ststemants are tru? (C1 tro uses the oldest costo inventory, which results in potently higher profs but near tem tax obligation. ‘In suppy chain nance, the income statement provides a summary ofthe flows in and out of he fn over a pacod of tine ‘Depreciation are the non-cash expenses associated withthe use of captal equpment (7 Appayoack perasisdetines as ROANet IncomelAcsets Gi None or ne aove. ‘Concerning Procurement, which of the following statements are true? Di Contract are the least of a company’s worries when outsourcing. ' forward contrat in rancil nedgng Is buying o sling the commodity oa related one fr future delivery on a given date at given price, ims outsource because a supplier might have better capabily 1D ontsouring is aways cheaper D none of ne above‘concaming Supply Chain Finance, whic of he folowing statements ae tue? Gi cash-to-Cash cycles calculated as working capital tumover=sales/warking capt ‘Ato Based Costing invoves defining relevant activites and relating 28 overhead costs to these actives. ‘Working capital is measure of a company’s efceney and short-term nancial neath “The Cash-to-Cash Cycle sa measure that canhelp a company plan ts working capital requemments. Ci none ofthe above. \ihich of tho following statements ae tre fora Network Facity Leation Problem? Increasing the numberof DCs wil aways increate the total cet, D) tncreasing the number of DCs that are opened wilintease inbound transportation costs Reducing the number of DCs from 6 o 4 should theoretically reduce the safety stock by about 20%. [Di tncreasing th number of BCs tat are opened wilincreasa inventory cots neatly. Dy none of ne aboveProblem2 Question 1 Beverly Thomson is part ofthe supply chain team at Fresh, 2 pre-pay online gacerin the UK that offers deliveries to {80% ofthe 2p codes inthe county. Baveryis an expert in network design, and she's in charge af detemining the flows that “The currant network has ahub-and-spoke structure, with ag conral hub (Hub A that serves four stibuion centers (OCS) [Ail custome orders ace served rom ane ofthese four DCS. FresnGo has diviedts Market n & delveey areas. Orders nthe ‘same datvery aea are al served fom one single DC. Table 1. Distance from Hub A to DCs (in miles). [Huba loc et lace oc lacs faa loce far Table 2. Distance from DCs to delivery areas (in miles). Jareat area? [Area [Aread [areas [Area6 [area7 reas ect fe ie fs fs [se fe pb ba loce joo sis bo StS dfSsSOSié loos br ks sft —sfto i bt bt lect Jaa ko fas fe Sts test Table 3. DC capacity (in boxes). [Capacty loct frase joce [sao locs [ro6o lcs foesTable 4. Expected dally demand for each delivery rea fn boxes) esst freed fwd ft fw’ fest fw? fo [ome fr fos fer pee or fo Considering that the trnspertation cost between Hub A and DCs is 0.024 pounds per box per mile an the transportation cost betgen DCs and delivery aeasis 0.072 pounds per box per mil What isthe optimal daly cost of operation (a pounds) fortis network to satisy al the expected demand? your aoa ei: (ear? 1aarT Question 2 1 pois poss (aed ess den) FreshGo i considering opening one additonal hub. In othe words, Hub A andthe four DCS (from Question 1 wl remain open, and Fresno is considering to add one (ony one) mare hub ots network. Beverly Thomason has identified tvee potential locations, each one with alifferent daly fixed cost see Table 6). The new potential hubs have a maximum capacity of 2000 boves each Transpoctation costs pr box per mie from Question ae also Wald for the new hub, Table 5 Distances fom potenti new hubs to DCS in mies) Table 6 Fixed daly cost for escn potential new hub. wm feat Pao [Eee foo fon feo ‘hich adeional nub shou FreshGo open to minimize the daly costo operation? (Remember that Hub & remains open) Wat woud be the cptinl daly cos of operation fr this network inching the fed cost of ring the new hub)? 15013‘Question 3 ‘Bevery Thompson hasbeen taste to anaiyze another option Insigaafirveducina anew hub, she shou explore the option of sabvering recto consumars rom Hub a addon fe aeiering am the our Des), “able 7 Distance tam Hus Ata delay ese fn mile) ‘The cot of serving fom Hub A dracl tothe delivery seat wous be 0072 pounds pr tox pet mil What would beth opin diy cost of partion for hi near? Question 4 FreshGo management team recognizes that every Thompson dda great analysis, but they ae luctant to inroduce any major changes to her network ran n,n te mid ofthe COMID pandeme. However, they Want to better understand what isthe curent evel of service, To answer tis question, jst consider FreshGo's orignal network from Question 1) Wats the love of service Fro iscurrenty proving, measured in percentage of demand within 30 mils of DC? 087, (© Answer submitted. Problem 3. 2 sec Question 1 125 points posi arsed, rut ads) ‘vers isa Latin American wholesaler of premium lowers that operates in Pets, Méalco, Colombia, and Ecuador. ts current ‘season bestsellers ae Tulips and Orchids. ‘Yu recenty heard that Janet Cooper, one of your newest frends frm the McroMastrs course, was ust hired as @ Category manager n charge of Orchids for the entire egin, Her fst asignmants to run abiding process to select one or more ‘rowers to serve the network orchids needs for the next year ‘Geting ready forthe process, she obtained from the Leaistic manager, Ronald, the annual demand forall countres‘Table Orchids Annual demand per country “Annual Demand i Units - Orchids | ‘orchids Pert 291 Meco 229 ‘Colombia 201 Eouador 343 [Alter running the bideing process only for Orchids by now, Janet ists the received proposals as folows: ‘Table 2: Received proposals -§ per country per unit - Orchids S Jeountry / Unit ‘Mathias & Co, Siveatve Foretina Pew 35 20 2 Mexico 0 8 a Colombia 2 8 Eg Ecuador 20 2a 50 ‘Table 3: Orchids crower copacy heat 260) ‘Sve des then ove her SCZ essons ered aati the rote oes After Ms Cooper fshed busing and rnnng he optinztion mode what’ te miner ost of ring the nna ‘demand of resis fora cours according othe ng process hforabon? Note at Youcnnot by ha fe, nd you shoul be sending ay coun ning aiferent towha he manQuestion 2 25 pats pose ea recut isn) Which oft folowing i tue concerning the mag she ut but? © wi sates (1 once dered the abective funtion should be mainized 1D None ft above ‘ Question 3 ‘Denis Roarque, te sistant manage rom the company, norms Janet tat some fhe growers selocaed inthe sae cours they are repos to sere. Shee este in Eoveor Forelinais cated n Mexico ‘Aste company i etlaring implementing new sustahable procurement practices (whch OWE scaled Susy 78 (peje, the teas eploring a scanainin which each vendor shuld spy at ast So the demand nese out. ‘Once thats been served tba remain capacty canbe alocated eter othe same o any oer county accorging to he Ang the new contin tthe mal and anring agua for an optnize soktion, che infrming the team that he new ‘optmged coeQuestion 4 1125 pins posse grasa resus nlésen) Unt Dennis gets tne Susty-74 project scenario approved bythe CEO, Jsnet Cooper continues working inthe base optimized ‘medal created for Questions 1 and 2 ‘Because of ner awesome jab, shes now been asked to Incorporate al seasonal lowers to the mode ‘able 4: Tulips Annual demand “anual Demand munis Taps Tulps Para a ence 2 Geemee 280 Eevador ae ‘She contacts the growers for adeitonal information, and finds out that on Tulips, not allmarkets are served by Note: tno pice in the table, means thatthe supplier nt serving the country on that product. ‘Table 5: Received proposals - per country per unit - Tulips: ‘S7 country / Unit Mathilar & Co. ‘Sivestre Florelina Peri 2 v México 5 3 ‘Colombia 2 Es Eouador 6 6 6 Table 6: Tulips Growers’ capacity ‘Annual Capacity - Units of Tulips Mathilar & Co 400 Siveste 450 Florelina "300 “The finance team gave ber adtiona deta to consider for hs new mode Price of Orchids: 75 per unt Price of Tui: 120 per unt Profits determined as Price - Cost, IF net sins non to anaiyze Olivers profit given the new avalabe data, what's the maximum annuel pot the company con ‘obtain on this new mad, considering both, Tlps and Orchids ses? 158526Problem 4 Fin! Exam ce Ae 7, 20212030 1ST 1 Bookmart one Question 1 1 pints pose (raced, es hin) offbeat Cars is company that manufactures commercial offroad vehicles, Thase vehicles are study inthe toughest terrains {nd as the company’s tagine says - "canbe driven Itealy anywhere’ The ato parts are designed in-house, anc ‘manufactured through various suppliers across the world Although the suppers perform quality checks and send the Certificates atong wth every batch, Beat Cars performs an internal quality check on citical mensions and other ‘unetonaities as outined in the components" design. “The process ads to tek lad tine, 20 the company is planing to vast na 2 scanner that stores the 20 models of key ‘components this scanner, erica mensions and quality check points can be marked and programmed fr the system 12 test on ts own. The operations manager, Bly, suggests to start tis process fore small to meclum size components that rive more in quantity and consume comparatively longer time fx quality check ‘The finance manager, Ronald, wants to analyze the economic vale before making this investment. For this purpose, he considers a 3-year ie horizon, a tax rate of 31%, and a discount rate of 23% whe ignoring inflation. frcrementat income statement Gn mlions of pounds) 7 Yearz vers (Sas income z 7 7 [Overtina expences 2 a 0 lear, 7 a z [Deprecition ana Arortzation 2 7 2 fear 2 7 z Income an 2 7 7 Inoar 2 © 2 ‘orrasat Cars neoas € GoM to acquit the Scanners which wil be pai in Year 0. The company uses a staight ine deprecation ‘method for ther vestments sshage vate of 0 ean be assumed at he end of yea 3 ‘Theic anticipated accounts recevables ventory and payable for the next hve years are gen in the table below. Assume in Year Othe cry investment thoy wish to make ein the 2D scanner which s why th net capital expencture i given as 20 [E {50M whien snows cash outflow. From yer 1 crwards, the company would eed adatonal waking capita to maintan thejistnans (nila pon) vero veri Yer? Years bercaten - 7 7 7 fet opie expenres 2 5 5 5 fst wenins cata mest 2 6 z Het change in accounts eciab'e 5 2 2 7 )Retehangein inventory 5 2 3 7 )Netchangeinaccouns arabe = a 7 Free cash Flows 7 7 7 7 Note: negative figure represents a cash outflow: Considering the complete income statement and adlustments a Wats te vale of 8215.55 Question 2 1 parts pore ace, etter) What re the projected free cashflows? Year 0: vex fone vew2 Sona eae: 1288) given above, answer the folowingQuestion 3 S pins posible (rade, resus hidden) What's the Net Present Value of investing in 20 scanners? ‘eos tor euros 23, wa iA Ee © oe ‘Question 4 Wats the intrnal ate of tur of investing a 3D scanners? | 0 For target return ate of 25%, woud be a worthwnienvestment?