Problem 1: Consider the supply chain for breakfast cereal. Discuss the competing objectives of the farmers who make the raw materials, the manufacturing division of the company that makes the cereal, the logistics division of the company that makes the cereal, the marketing division of the company that make the cereal, the distribution arm of the grocery chain that sells the cereal, and the manager of the individual grocery store that sells the cereal.
Problem 2: You have been called in as a consultant to a large drugstore chain which has 24,000 inventory line items. Explain how inventory classification could help this company to better control its inventory.
Problem 3: Discuss how each of the following helps to alleviate the bullwhip effect:
a. E-Commerce and the Internet
b. Express Delivery
c. Collaborative forecasts
d. Everyday low pricing
e. Vendor-managed inventory