1. Managers at your region 3 DC are worried. For the past two quarters, only 38% of finished goods shipped by surface transportation from DC1 to DC3 have arrived in time to meet current-quarter orders. Managers at DC3 are nervous that your firm will lose customers if the reliability of delivery of finished goods isn’t improved. What step(s) could your firm take to solve this delivery problem?
(A) Use air transportation for shipping finished goods from DC1 to DC3.
(B) Hire surface carriers that have higher surface delivery rates.
(C) Implement IT synchronization with plant-to-DC surface carriers.
(D) All of the above.
2. Several months ago, your firm decided to start practicing postponed production to better accommodate fluctuations in product demand. Currently, you have an outsourced third-party distribution center (DC) in region 2 and an owned DC in region 3. Given the following inventory information, what is the maximum total number of H65122 and M65122 set-top boxes that you can produce through postponed production? (Assume that emergency orders of sub-assembly components are not possible at this time.) Region 2 DC (Outsourced Third-Party) Region 3 DC (Owned) Units of 3-0 150,000 150,000 Units of Gamma 70,000 80,000 Units of Delta 90,000 90,000 Units of Epsilon 135,000 145,000
(A) 135,000
(B) 145,000
(C) 150,000
(D) 280,000
(E) 300,000