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Advanced Supply Chain Management
April 2025 Examination
Q1. Frito-Lay has over three dozen
brands of snacks and chips, 15 of which sell more than $100 million annually
each, and 7 of which sell over $1 billion each. Its brands include Fritos,
Lay's, Doritos, Sun Chips, Cheetos, Tostitos, Flat Earth, and Ruffles.
Frito-Lay relies on effective AGGREGATE PLANNING to match fluctuating multi-
billion-dollar demand to capacity in its 36 North American plants. Planning for
the intermediate term (3 to 18 months) is the heart of aggregate planning.
a)
Explain the two (2) Generic Aggregate Planning Strategies and the Pros
& Cons of each of these strategies.
b)
Explain the key steps in Aggregate Capacity Planning. (10 Marks)
Ans
1.
Introduction
Aggregate planning is a crucial component of supply chain management, involving
medium-term decision-making to balance supply and demand efficiently. Companies
like Frito-Lay, with a diverse product portfolio and fluctuating demand, depend
on effective aggregate planning to optimize resources while meeting customer
requirements. This process is vital for maintaining cost-effectiveness,
ensuring customer satisfaction, and achieving organizational goals in a
competitive market. Aggregate planning bridges the gap between long-term
strategic decisions and short-term operational planning, focusing on optimizing
production, workforce, and inventory levels over a horizon of 3 to 18 months.
This paper explores
Q2. Aeolus Wind Energy, an
international wind turbine manufacturer is facing ongoing challenges with
timely supply of crucial components for its production, causing frequent
disruptions. Despite extensive internal efforts to address the issue,
production delays and cost escalations keep occurring due to last-minute rescheduling
and procurement. The lack of delivery reliability is leading to dissatisfied
customers and contractual penalties, significantly impacting the company.
Willem van Hoff, the COO has
undertaken a major review and revamp of the company’s Global Supply Chain.
Discuss the factors that the COO needs to consider while redesigning the
company’s global supply chain network.
(10 Marks)
Ans
2.
Introduction
The efficiency and resilience of a global supply chain are vital for companies
operating in industries such as renewable energy, where timely delivery and
cost control significantly influence competitiveness. Aeolus Wind Energy’s
ongoing challenges with delivery reliability and supply chain disruptions
highlight the importance of a robust and adaptive supply chain network.
Addressing these issues requires a comprehensive redesign of the supply chain
that aligns with business goals, customer expectations, and market dynamics. A
well-designed global supply chain ensures operational efficiency, reduces risks,
and enhances customer satisfaction. For
Q.3. Clothes Horse Fashions
specializes in the manufacture and sale of ready-made clothing, primarily
focusing on designer dresses and sportswear. With a global network of sales
agents responsible for their respective geographic regions, the company is
experiencing explosive growth. However, the company is currently facing intense
pressure to continually enhance its supply chain performance in order to
maintain its competitive edge.
To address this challenge, Jack
Wilcox the COO is now keen to restructure their supply chain to optimize its
operations and is trying to decide between implementing VMI or CPRF. While
David Rakich, the SVP of Operations is in favor of adopting CPRF, the CIO, Ann
Rosenthal, is leaning towards adopting VMI.
a.
What is VMI? What arguments can Ann use to make the case for VMI and
against CPRF? (5 Marks)
Ans
3a.
Introduction
Vendor-Managed
Inventory (VMI) is a collaborative inventory management approach where the
supplier takes responsibility for managing and replenishing inventory levels
based on agreed-upon parameters.
b.
What s CPRF? What arguments can David use to make the case for CPRF and
against VMI. (5 Marks)
Ans
3b.
Introduction
Collaborative
Planning, Forecasting, and Replenishment (CPFR) is a strategic approach to
supply chain management that emphasizes collaboration between supply chain
partners to align forecasts, share insights, and streamline replenishment
processes. For Clothes Horse Fashions, adopting CPFR could foster better
partnerships and improve supply chain visibility. David Rakich, the SVP of
Operations, advocates for CPFR due to its comprehensive and collaborative
approach, arguing that it better addresses the complexities of the fashion
Dear students, get
fully solved assignments by professionals
Do send your query at
:
or call us at :
08263069601
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