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Question: Case study. Trans-Changi, Inc - Where does consideration of a relationship with Trans-Changi fit into the steps of the sourcing methodology?

14 Nov 2022,7:32 AM

 

Case study. Trans-Changi, Inc. (15 marks)

With corporate headquarters located in Singapore, Trans-Changi, Inc. is one of the world’s largest sourcing and logistics companies. Although the company owns no fabric mills, manufacturing operations, or logistics-related assets, its primary competitive strength is its network of over 10,000 suppliers in approximately 40 countries that make it possible for the company to be core competent in producing clothing more quickly and inexpensively than otherwise available.

Trans-Changi is regarded as one of the major players worldwide in the sourcing, manufacturing, and distribution of clothing and other garments. The company currently has three primary types of product markets in which it competes: (1) proprietary brands, which are sold only through one exclusive retailer; (2) private label merchandise, consisting of in- house brands belonging to individual retailers; and (3) licensed brands that deals with products featuring images of licensed entertainment characters. Although the global marketplace has experienced significant economic volatility in recent years, Trans-Changi has been able to maintain its reputation as one of the most impactful, global supply chain players.

According to Tony Tang, CEO of Trans-Changi, companies in the supply chain business are looking to expand manufacturing and sourcing operations in more cost-effective areas, and to meaningfully consider new business opportunities in new market areas. Thus, it is no surprise that firms worldwide look to organizations such as Trans-Changi to manage a number of key supply chain processes, including sourcing, manufacturing, and distribution. A few of the top global apparel store brands that rely upon the services of Trans-Changi include Unlimited Brands, Zaragoza, Femme Fatale, H&B, and Bobby Hilfiger.

Although headquartered in Singapore, major markets for Trans-Changi services are in North America, Western Europe, and the Middle East. Most sourcing and manufacturing is centered on China and India, but significant diversification is currently a priority to other countries such as Vietnam, Thailand, Philippines, Indonesia, Turkey, and South Africa.

As Trans-Changi prepares for the future as a leader in integrated supply chain management, its corporate philosophy focuses on “helping our customers to understand their core competencies, and outsource the rest to Trans-Changi.”

 

 

Case Questions

a)  Assuming that you are SVP supply chain at a leading merchandiser of fashion apparel, what do you feel would be the benefits and drawbacks of developing a business relationship with Trans-Changi for the sourcing, manufacturing, and distribution of your products? (5 marks)

b)  Where does consideration of a relationship with Trans-Changi fit into the steps of the sourcing methodology? (5 marks)

c)  Since a logical objective of a relationship with Trans-Changi should be to create benefits to both parties over time, what do you think are some of the very critical “external” factors that could impact the success or failure of this relationship? (5 marks)

Q2. Problem solving (5 marks)

At a computer retail store, annual demand of a particular computer is 1,000 per month, unit cost of the computer is $500. Holding cost of a computer per year per item is 20% of the unit cost. If the ordering cost is $4000 per order. Determine the following:

  1. Optimal or economic order quantity (EOQ) of the computer. (1 mark)
  2. Total annual inventory cost for the EOQ? (1 mark)
  3. Total annual inventory cost of order quantity: (i) 20% more of EOQ, (ii) 20% less of EOQ (2 marks)
  4. For the EOQ, determine the time between two orders, and how many orders need to place in a year (1 mark)

Expert answer

 

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

 

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

Q1 -Sample answer to case questions:

a)
Example Benefits:

  • Recognition by the fashion apparel manufacturer of its corporate core competencies and the realization that it may be better to outsource or transfer ownership of sourcing operations to a company that specializes in such.
  • Streamlining and integration of administrative activities needed to assure the effective and efficient functioning of the fashion apparel merchandiser’s supply network.
  • Transference of some of the business risks to Trans-Changi but introduces possibility of the fashion apparel merchandiser losing control over certain aspects of its supply chain.

Example Drawbacks:

    • Potential loss of control (although there is a possibility that use of Trans-Changi may result in improvements in control)
    • Lack of flexibility
    • Potential problems with integrating information systems of Trans-Changi and fashion apparel merchandiser
    • Cost and service considerations, including recognizing the critical importance of speed in supply chains supporting fashion apparel merchandisers

b)

  • Develop Strategic Plan – plan needs to identify the potential outsourcing or transfer of certain supply chain operations to external parties
  • Understand Spend – provides basis for comparison with costs associated with Trans- Changi relationship
  • Evaluate Supply Sources – external sources need to be considered
  • Finalize Sourcing Strategy – confirmation of using a company such as Trans-Changi
  • Implement Sourcing Strategy – first, formal involvement of Trans-Changi as supply chain partner with fashion apparel merchandiser
  • Onboarding and transitioning – joint effort to include Trans-Changi and fashion apparel merchandiser to see that new relationship begins smoothly and that needed capabilities by both parties are identified and available
  • Collaborative Process Improvement – to help assure ongoing success of the relationship

 

c)

Response here could include a broad range of external factors that potentially may impact overall supply chain and business operations. A few examples are listed below:

  • Overall business success of Trans-Changi – includes ability to continue a base of business that helps to create economies of scale, etc.
  • Global economic conditions
  • Shifting economics of global logistics services (e.g., transportation; warehousing; manufacturing; etc.)
  • Tax and regulatory conditions
  • Changing global trade patterns and concepts such as off-shoring, near-shoring, etc.

 

Question 2

a)  Q* = Sqrt[(2)(12000)(4000)/(0.2)(500)] = 980 computers

b)  Total annual inventory cost = (12000/980) x 4000+ (980/2) (500x0.2)=48980+49000= $97,980

c)

(i)Total annual inventory cost for 1176 units (for 980+0.2x980) = (12000/1176)x4000+(1176/2)(500x0.2) =10.20x4000+588x100=40,816+ 58,800= $99616

(ii) Total annual inventory cost for 784 units (980-0.2x980) = (12000/784)x4000+(784/2)(500x0.2)= 15.30x4000+392x100= $61,200+$39200= $100,400.

d)

  • Reorder number per year =(12000/980) = 12.2 times in a year
  • Time between two orders= 12 months/12.2= 0.98 months

 

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Policy Topic: World Trade Report 2023: Re-globalization for a secure, inclusive and sustainable future (World Trade Organization) "Today’s complex challenges require more, not less, international cooperation, and WTO members are actively looking at how to update and upgrade the WTO rulebook so that trade can contribute fully to effective responses. The alternative to rules-based integration is power-based fragmentation and a world of greater uncertainty, increased socioeconomic exclusion and heightened environmental decline. This report makes the case that 're-globalization' is a far more attractive alternative." From the foreword by the WTO Director-General, Dr Ngozi Okonjo-Iweala (page 7, World Trade ...
Risk Matrix & Dependency Diagrams for a given System Design

Assignment Description: This is an individual assignment designed to build your familiarity with these tools, which are important in risk evaluation for high availability designs (including security infrastructure) that enhance business continuity and disaster recovery capabilities. You will submit your work as an MS-Word document (plus, of course, a Turnitin report). There are five enterprise architecture descriptions for small-to-medium sized businesses on the following page. They are all sketchy and incomplete. You will choose one and do the following, seeking to optimize the balance between spending and risk reduction. Treat your report as though you were a HA/BC/DR ...
Afrobeat's Impact on Cultural Exchange and Social Change Across American Regions: A Critical Analysis

Question: How does Afrobeat contribute to cultural exchange and social change across American regions, focusing on its influence through cultural globalization, hybridity, and activism? DRAFT / STUDY TIPS: Afrobeat, a genre rooted in West African rhythms and infused with elements of jazz, funk, and highlife, has transcended geographical boundaries to become a powerful force in cultural exchange and social change across American regions. This paper aims to explore how Afrobeat contributes to these phenomena, particularly through its influence on cultural globalization, hybridity, and activism. By examining the ways in which Afrobeat has evolved and resonated within American communities, this paper seeks ...

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