questions – 1 hour 10 mins

  • Your book states that “a firm is often better served by ordering a convenient lot size close to the EOQ rather than the precise EOQ.” Why
  • List at least two conditions under which revenue management can be an effective lever for increasing supply chain profitability.
  • For products where the firm has market power, manufacturers can use discounts to achieve coordination in the supply chain and decrease supply chain costs – but there is a tendency for retailers act in a way that maximizes their own profit as opposed to the profitability of the overall supply chain. Please describe at least two actions that manufactures can take to insure that supply chain profits are maximized.
  • Why should on-time performance be considered in supplier selection decisions?
  • The primary role of revenue management in a supply chain is to increase the total margin earned on assets. Please explain.
  • As stated in the text, supplier performance should be evaluated based on impact on total cost, i.e., purchase price — plus other factors. Please list at least three additional factors that you might address when making sourcing decisions.
  • What is a “quantity flexibility” contract and how can such a contract increase total supply chain profitability?

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