FGH, Inc. is a beverage manufacturer. FGH is having difficulty coordinating daily delivery requirements of bottles from Supplier X. Delivery schedules are set weekly, but often need to be changed. However, the supplier has otherwise established itself as reliable. In the hope of speeding up the replenishment process and reducing coordination efforts, FGH is prepared to share production and inventory information with Supplier X. In this situation, which of the following should FGH implement with Supplier X?
Implementing Supplier-managed inventory (SMI) allows FGH, Inc. to share production and inventory data with Supplier X, streamlining the replenishment process. This approach enables the supplier to manage inventory levels and deliveries based on real-time demand, reducing coordination efforts and improving delivery efficiency.
A firm completes its near level production, five-month demand plan for the next business planning cycle:
Month 1 Month 2 Month 3 Month 4 Month 5
Demand Forecast 15,000 20,000 25,000 25,000 18,000
Production Plan (Regular Time) 20,000 20,000 20,000 20,000 18,000
Production Plan (Overtime) 5,000
Ending Inventory 5,000 5,000
Average Inventory 2,500 5,000 2,500
Workforce Planning Starting Workforce Month 1 Month 2 Month 3 Month 4 Month 5
Hires 7
Layoffs 2
Actual Workforce Size 13 20 20 20 20 18
Regular Time Hours Required 2,000 2,000 2,000 2,000 1,800
Overtime Hours Required 500
Costs
Regular time cost per unit $15
Overtime cost per unit S25
Monthly inventory cost per unit $1
Cost of hire $1,500
Cost of layoff S400
What is the cost of this demand plan?
The total cost is calculated by summing the costs of regular and overtime production, hiring, layoffs, and inventory. Calculations consider each month's figures and associated costs, providing a comprehensive total that aligns with supply chain cost management principles.
A manufacturer has historically ordered fasteners utilizing monthly fixed order quantities. The firm wishes to explore the feasibility of using economic order quantity (EOQ), and determines that the EOQ is less than the supplier's quoted price break. Which of the following is the BEST course of action for the firm to take?
Comparing the price break to the carrying cost of buying at the economic order quantity is essential. This analysis will help the firm determine the most cost-effective purchasing strategy by weighing the benefits of the price break against the costs associated with holding additional inventory. Reference: Inventory management and cost analysis.
Which of the following refers to a computer-based system that determines the purchase requisition requirements that go into the manufacture of end items, and addresses an organization's operational, financial and marketing strategies?
MRP II is a computer-based system that integrates operational, financial, and marketing strategies, expanding beyond material requirements planning (MRP) to include broader resource planning and management. Reference: MRP II frameworks are essential for aligning production with organizational objectives and market demands.
A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the proper planning in place?
In a price-sensitive and competitive market, focusing on total cost of ownership is critical. By negotiating with suppliers to minimize inventory and logistics costs, the firm can better control expenses and remain competitive. This approach ensures proper supply chain alignment with the new market segment's demands.
