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EXAM #2 SCM 300

240 POINTS
SECTION 1 5 points per question (145 points total)
In this section provide the term or concept that completes or answers the sentence provided. Here
are a few examples:
Example 1: When you divide a companys annual demand by their lot size it gives you
Answer: Number of orders per year
Example 2: The fastest mode of transportation
Answer: Air

IMPORTANT DIRECTIONS
Do NOT cut and paste your answers into blackboard.
It creates big formatting issues for grading. Type answers yourself.
Do NOT use dollar signs in your answers.
$ make downloading data very difficult.
Your answer to each question in Section 1 may NOT exceed 5 words
No Acronyms, spell out entire term
1. According to lecture, Arizona State University is working with which company to develop a
sustainability index for retail products?
2. Which company was used as an example during the lecture of an organization that saved a significant
amount of money by joining the CT-PAT program?
3. Which of the following examples was (were) NOT used in the lectures? Microsofts XBox, Chobani
Yogurt. NAFTA Railway, Volkswagens currency exchange rate issues, Store layout at Ikea,
Sourcemap.com
4. (Fill in the blank) According to the eNotes, in order to make sure suppliers deliver products on time,
in the right amount, in the correct packaging, and at the appropriate quality level, retailers will often
make their suppliers pay _______ as penalties for non-compliance.
5. According to the course readings, which retail company limits outsourcing (manufacturing more than
half of their products in-house), distributes products in small batches, applies price tags before items are
shipped, and even tolerates occasional stockouts?
6. (Fill in the blank) The line at Chipotle is very long. Some customers get in line and leave; others dont
even bother getting in line. According to SCM 300, those that do not even get in the line are _____,
those that get in line and leave are _______.

7. According to the eNotes, which Ethical Supply Chain Tool allows employees to report unethical
behavior in the supply chain without fear of retribution by their superiors?

EXAM #2 SCM 300


240 POINTS
8. According to lecture, which global port was given as an alternative to using west coast US ports like
the Port of LA and the Port of Long Beach? This port was even reported to save shippers 2-days for
shipments originating in Asia destined for the eastern United States.
9. (Fill in the blanks) A system where demand is known and a supply chain can preemptively
manufacture and ship goods is a _____________system. The inverse situation, in which inventory is
produced only after the order is placed, is called a __________system.

IMPORTANT DIRECTIONS
Do NOT cut and paste your answers into blackboard.
It creates big formatting issues for grading. Type answers yourself.
Do NOT use dollar signs in your answers.
$ make downloading data very difficult.
Your answer to each question in Section 1 may NOT exceed 5 words
No Acronyms, spell out entire term
10. Your company places an order for 400 units every year. Because of a shortage in inventory only 250
are shipped to you this year. Your reaction is to inflate order sizes next year, from 400 to 500, in the
hopes that even in another inventory shortage occurs, youll get your intended order size. Your reaction
is called
11. (Fill in the Blank) According to the eNotes, in the world of business, social responsibility often means
that an organization values three things: Legal and ethical behavior, sustainability and ________.

12. (fill in the Blank) According to the eNotes, a ____________ is a firm that never actually possesses
inventory and only acts as a retailing portal taking orders from customers and contracting wholesalers
or manufacturers to make the physical delivery.
13. (Fill in the blank) Those who have bought paint at Home Depot will know they have a seemingly
endless selection of colors. Keeping thousands of colors in stock would obviously be cost-prohibitive. In
order to make their wide color selection possible while staying relatively lean, they hold high quantities
of a few basic colors that they can then mix into virtually any possible color. By putting off the step in
which the final product is mixed, they are engaging in ______________.
14. According to the eNotes, which of the following is (are) NOT associated with Lean Systems? Quality
at the Source, Rationing, Poka-yoke, Continuous improvement, Close supplier ties, Chargebacks

EXAM #2 SCM 300


240 POINTS
15. Based on the eNotes, name the two supply chain certifications that are related to social
responsibility. (For this question, it is OK to use terminology provided in eNotes)
16. (Fill in the blank) According to the eNotes, ________ is a program where supply chain partners agree
to share data in an effort to develop forecasts. This program of shared data and collaborative planning
is focused on reducing costs across the supply chain.
17. A retail program that eliminates sales and promotions in an effort to minimize the bullwhip effect
would be called
18. (Fill in the blank) According to lecture, when a company experiences relatively stable demand levels
but has very unstable levels of inventory, the company is said to be experiencing ______.
19. Electronically, what was the challenge associated with making CAF Practices work?
20. (Fill in the blank) According to lecture, Flextronics was a(n) ____ contractor that helped Microsoft
bring the Xbox to market.
21. According to the course materials, if the American company Patriot Corp. utilizes Patriot-owned
factories in China to manufacture cell phones for the North American market, this would be an example
of Patriot using which manufacturing/sourcing strategy?
22. There are eight critical supply chain processes. According to the eNotes, which of the supply chain
business processes utilizes information to better understand the needs and desires of your customers
today and into the future?

IMPORTANT DIRECTIONS
Do NOT cut and paste your answers into blackboard.
It creates big formatting issues for grading. Type answers yourself.
Do NOT use dollar signs in your answers.
$ make downloading data very difficult.
Your answer to each question in Section 1 may NOT exceed 5 words
No Acronyms, spell out entire term
23. (Fill in the blanks) The eNotes described a story of a boat on a lake that illustrates the need for
continuous improvement in lean manufacturing. In this story, the water represents ____ and the rocks
represent ____.
24. (Fill in the blank) In the Rapid Fire Fulfillment case, the companys self-reinforcing system was built
on three principles: Stick to the rhythm across the entire chain, Leverage your capital assets to increase
supply chain flexibility, and ______.

EXAM #2 SCM 300


240 POINTS

25. According to lecture, what is the name of the textile company that was able to manufacture fabric
whose trimming could be sold as compost and burned to heat water in their plant?
26. (Fill in the blank) According to the course materials, the outsourcing of business functions such as
accounting, payroll, human resources, and IT to independent suppliers is called____________.

IMPORTANT DIRECTIONS
Do NOT cut and paste your answers into blackboard.
It creates big formatting issues for grading. Type answers yourself.
Do NOT use dollar signs in your answers.
$ make downloading data very difficult.
Your answer to each question in Section 1 may NOT exceed 5 words
No Acronyms, spell out entire term
27. According to the course materials, if the American company Patriot Corp. contracts Telefon a
Brazilian contract manufacturer to manufacture cell phones for the North American market, this would
be an example of Patriot using which manufacturing/sourcing strategy?
28. Which book series was used as a lecture example to demonstrate the challenges associated with
global logistics of popular books in large quantities?
29. (Fill in the blank) According to lecture, when a grocery store lets Coca-Cola monitor Coke levels in
the grocery store and also has Coca-Cola representatives stock the shelves in the grocery store, this type
of agreement is referred to as ______.

EXAM #2 SCM 300


240 POINTS
SECTION 2 5 points per question (55 points total)
Use the following table to answer questions 30 through 36.
Some answers may not appear directly on the table.

NUMBER OF SERVERS
2

RHO ( )

Not Provided

0.331

0.221

P0

0.338

0.503

0.515

P1

0.224

0.333

0.341

P2

0.148

0.111

0.113

P3

0.098

0.036

0.025

P4

0.043

0.012

0.005

P5

0.028

0.003

0.001

t s (minutes)

12.70

4.83

4.36

ns

1.95

0.74

0.67

30. What would RHO be in a SINGLE-server model? (3 decimal places)


31. In a ONE-server model, what is the probability less than 3 customers in the system?
32. In a TWO-server model, what is the probability of more than one person in line?
33. What is the probability of being served immediately in a THREE-server model?
34. In a THREE-server model, what is the probability exactly of one customer in line?
35. In a THREE-SERVER model, how much time does the average customer spend in the system; from
the moment they enter the system until they leave the system? (in minutes)
36. Suppose RHO was 0.60 in a one-server model. What would be the average number of customers in
line in a single server model?

IMPORTANT DIRECTIONS
Do NOT cut and paste your answers into blackboard.
It creates big formatting issues for grading. Type answers yourself.
Do NOT use dollar signs in your answers.
$ make downloading data very difficult.
Your answer to each question in Section 1 may NOT exceed 5 words
No Acronyms, spell out entire term

EXAM #2 SCM 300


240 POINTS

Problem #37
Consumer Demand : 20,000 units
RETAIL: Theft and Damage
DISTRIBUTION CENTER: Theft and Damage
PACKAGING CENTER: Damage
MANUFACTURING: Defect Rate
MATERIALS: Supplier defect and damage rate

1.5%
1.2%
0.8%
2.0%
1.4%

How many units should the materials plan account for in order to meet the expected consumer
demand?
Problem #38
Present State:
Warehouse 1: 3500 units
Warehouse 2: 3500 units
Desired System: 4 Total Warehouses
What would be the required amount of inventory per warehouse in the desired system?

Problem #39
In a single server model, = 11 CUSTOMERS/HOUR and = 17 CUSTOMERS/HOUR. Find the
average amount of time a customer spends in the line. Provide answer in MINUTES (Two decimal
places)

Problem #40
In a single server model, = 7 CUSTOMERS/HOUR and = 12 CUSTOMERS/HOUR. Find the
probability that you will be served immediately. (Three decimal places)
.

EXAM #2 SCM 300


240 POINTS

SECTION 3 20 points per question (40 points total)


There are TWO essay questions.
The answer to each question should be 250 to 350 words in length.
Use paragraphs or lists to answer your questions
Failure to comply with these guidelines will result in at least a 10 point penalty per question.

Please see ESSAY GRADING section of the course webpage


before completing this section of the exam

QUESTION #1. For the assigned case, Unsafe for Children (Mattel Case), provide a brief synopsis of the
case.
Within your synopsis do 3 things:
A. Explain how Mattel set up its supply chain for Core brands vs. Non-Core brands in China.
B. Explain how this led to the problems with lead in some of the toys they manufactured.
C. Provide any lessons learned that may be of interest to other manufacturers.
This is a single question with 3 parts, so no more than 350 words total.

QUESTION #2. Consider the assigned case, Starbucks Corp.: Building a Sustainable Supply Chain, for this
question. Starbucks developed a sort of certification program for their suppliers, CAF Practices. From a
supply chain perspective, what are TWO of the aspects of this program that other companies might
want to mimic and why?
This is a single question asking for 2 items, so no more than 350 words total.

Remember, you are competing against the other students in the class.
Make sure your answer is accurate, interesting, and easy to read.
TIPS ON ESSAY MOST COMMON STUDENT ERRORS
A. Professionalism Do not try to be cool or snarky in answering your questions. Your personal opinion is not important. Your
professional opinion, though, is. You dont need to be boring, but you do need to stay professional. Keep your opinions to
yourself when completing an exam.
B. Rambling Some students just start writing with no clear direction. The answer looks disorganized, and in many cases the
student just sound unintelligent as they go from sentence to sentence without any direction. Typically, this is also the student
that refuses to use paragraphs.
C. Not being specific When you are not specific I assume you do not know what you are talking about.
D. Useless opening sentence(s). Why do students feel compelled to tell me that companies are successful or that this issue is
important? Just get to the point, answer the question. These are the same students that complain that they cant be detailed
in 350 words. IF you start answering the question immediately, you have more time to get in all of your details.