Total Marks 5
Starting Date Tuesday, June 02, 2020
Closing Date Friday, June 05, 2020
Question Title GDB No.1
Supply Chain Management
Graded Discussion Board
Total Marks: 5
Due date: June 5, 2020
To help the students understand how nature of products dictates the Supply Chain Strategy.
“CHLORO CHEM”, a chemical manufacturing company, has set up a manufacturing plant in Lahore. The company aims to produce a range of chemicals used in agriculture and food processing; which results in a number of variants of the products. The basic raw materials are the same for all the end products, but the final differentiation occurs after processing with other additives.
Currently the company is following a LEAN supply chain strategy with the target to have large amounts of finished products to be held in stores. The company anticipates that this strategy will help them for the mass production of the end products, which will ultimately culminate in saving the per unit cost.
Being a student of Supply Chain, do you favor this strategy of the company or not – keeping in view the whole situation? Discuss with solid arguments.
Instructions:Be CONCISE and PRECISE. Irrelevant information will result in deduction of marks. You are supposed to provide a brief answer in bulleted form with proper reasoning. The length of your answer must not exceed “200” words. This does not mean that the answer should be extended with unwanted details just for the sake of completing “200” words. Avoid directly copying material from any source. Provide logical points in your own words. Adopt a critical approach while answering the given question. Only logical and rational points supported by good reasoning will be awarded marks. You are advised to be specific and avoid unnecessary details or explanations as it can have negative impact on your scores. Copied material will be marked as ZERO.
Total Marks: 10
Due Date: 28th January, 2020
SEMESTER FALL 2019
SUPPLY CHAIN MANAGEMENT (MGMT614) ASSIGNMENT NO.01
“The Designers” an international furniture making company wants to expand its business in Pakistan by
introducing its specialized Teak-wood rocking chair. For this purpose, the company needs a warehouse to store the goods. The company has forecasted the demand of the chair to be 4000 units each year for the next four years. The revenue generated by the company is Rs.20000 per chair. A single chair takes up an area of about 10 square feet.
Swift Logistics, a warehousing expert company, has offered to provide its services for storage of the goods. It has presented two alternatives: either to Lease the warehouse at the rate of Rs.10000 per 100 square feet or have it on Spot Market rate which is Rs.15000 per 100 square feet.
a) Being the supply chain manager of “The Designers”, you have to decide either to hire the warehouse on Lease or choose On Spot rate on the basis of a Discounted Cash Flow Analysis with discount rate of 15%; considering the fact that the only relevant cost is the warehouse cost (7 marks)
b) If the company decides to shut down the production after two years, will the option chosen in Part (a) still be feasible? Provide justification for your answer (3 marks)
In this assignment, you have to calculate the NPV (Net Present Value) of both options.
You are required to show the necessary calculations in solution.
No theoretical definitions and explanations are required in part (a).
Watch video lectures and consult book/notes to complete the assignment
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