1. According to Dr. Lambert, what are the 8 cross functional processes that make up Supply Chain Management? Just list the eight.
2. Briefly describe the bullwhip effect.
3. What is drop shipping?
4. What is postponement?
5. What are two advantages to using a "few supplier" strategy? What are two disadvantages? (Four sentences maximum.)
6. Flora Flowers orders flowers every day from a large wholesaler. She pays $4.15 a bunch and after arranging them sells them for $7.50 a bunch. Flora has estimated demand and probabilities with the table below. How many bunches should Flora order to maximize profit? Format as xxx
Demand Probability
150 0.2
170 0.35
190 0.35
200 0.1
7. Continuing with question 6, what is Flora's expected profit? Format as $xxx.xx
8. Still continuing with Flora and her flowers, Flora's son is taking a supply chain management class and tells Flora that she should think about alternatives to just tossing any excess flower bunches at the end of the week. She has found a dried flower producer who will buy all of her excess flowers for $1.50 a bunch. If Flora goes with this option, how much should she order? Hint: What has changed in this problem is the payout table. When Flora has an excess (ordering more than she sells) she isn't "out" as much as in the previous problem. So go back to your payout table and adjust the cells where she has that excess.
9. And if Flora goes with the option to sell the unsold fresh flowers at the end of the day, she can expect her profit to be? Format as $xxx.xx