Question 1:
IF: THEN (all else equal, it is likely that):
a) We aim to increase “inventory velocity” We must produce and push
work-in-process faster to next operation/ wait and produce only what is
pulled by next operation. Explain Why
b) We install an expensive machine that requires The intensity of the
“bull whip” in the supply chain
very large production batches but it is fast will increase / decease /
not be affected. Explain Why
c) We consolidate inventories from two (nearby) “Service level”
will increase / decrease/ not be affected warehouses into one warehouse
(keeping the same Explain Why
amount of inventory)
Question 2:
A plant makes four different models of DeskJet printers. Up to now, it
has been producing each model only once every week (for example, Model A
on Mondays, Model B on Tuesdays and part of Wednesdays, Model C on
Wednesdays and Thursdays, and Model D on Fridays). There is a proposal
to move from weekly to daily schedule and produce some of each model
every day. Total weekly production output would be the same.
Changeover times and costs (from one model to another) are
insignificant.
A. Would this change reduce or increase:
The level of inventory of printers in the supply chain after the plant?
Why?
The level of “work in process” inventory in the plant (i.e., number
of printers being assembled)? Why?
The intensity of the “bull whip” in the entire supply chain? Why?
Business Homework Solutions
#41321
Operations management - supply chain management & the bullwhip effect
See attached file also.
Question 1:
IF: THEN (all else equal, it is likely that):
a) We aim to increase "inventory velocity" We must produce and push work-in-process faster to next operation/ wait and produce only what is pulled by next operation. EXPLAIN WHY
b) We install an expensive machine that requires The intensity of the "bull whip" in the supply chain
very large production batches but it is fast will increase / decease / not be affected. EXPLAIN WHY
c) We consolidate inventories from two (nearby) "Service level" will increase / decrease/ not be affected warehouses into one warehouse (keeping the same EXPLAIN WHY
amount of inventory)
Question 2:
A plant makes four different models of DeskJet printers. Up to now, it has been producing each model only once every week (for example, Model A on Mondays, Model B on Tuesdays and part of Wednesdays, Model C on Wednesdays and Thursdays, and Model D on Fridays). There is a proposal to move from weekly to daily schedule and produce some of each model every day. Total weekly production output would be the same. Changeover times and costs (from one model to another) are insignificant.
A. Would this change reduce or increase:
a) The level of inventory of printers in the supply chain after the plant? Why?
b) The level of "work in process" inventory in the plant (i.e., number of printers being assembled)? Why?
c) The intensity of the "bull whip" in the entire supply chain? Why?
In an 1889 word solution, the response is thorough and pertinent.
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