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1. Consider two products with the same cost but different margins. Which product
1. Consider two products with the same cost but different margins. Which product should have a higher level of product availability? Why?
2. Consider two products with the same margin carried by a retail store. Any leftover units of one product are worthless. Leftover units of the other product can be sold to outlet stores. Which product should have a higher level of availability? Why?
3. A firm improves its forecast accuracy using better market intelligence. What impact will this have on supply chain inventories and profitability? Why?
Improved forecast accuracy should result in a closer match between supply and demand, resulting in improved profitability. An improved match will not change the service level but will result in lower levels of unplanned carryover inventory and shortages at the end of planning periods. The improved match will increase profit by lowering the expected costs of having too much or too little inventory.
4. How can postponement of product differentiation be used to improve supply chain profitability?
Required Texts / Materials: Supply Chain Management: Strategy, Planning, and Operation, 7th Edition Sunil Chopra. ISBN-13: 9780134731889. Include additional resources.
The answers should be a minimum of 2 double-spaced pages. You should properly paraphrase your answers from a reference.
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