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