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EAST WEST UNIVERSITY
OPM 522: Supply Chain Management (Sec 1)
Mid Term Exam (Summer 2020)
Marks: 60 Time: 1 hr
Q. 1. Even though customer demand is quiet stable, production plan varies a lot –
why?
Q. 2. How can you distinguish “capacity allocation” from “market and supply
allocation”?
Q. 3. What is the problem of “sequential optimization”? How can you relate this to
“local optimization”?
Q. 5. How can “low prod cost” from manufacturing can be conflicting with “low price”
from customer perspective? How can you resolve this problem?
Q. 7. Why “season end markdown” is zero for low implied uncertain product?
Q. 9. How “multiple products and customer segments” affects the supply chain
performance? Provide example.
Q. 10. Transportation costs first reduce and then again increase with increased
number of facilities – why?
Q. 12. Inventory cost is higher but transportation cost is lower for “local storage at
consumer pickup” compared to all other options.