Global sourcing and procurement 2

1. a) How supply contracts serve as powerful tools for ensuring adequate supply and demand.
b) Features and characteristics of the followingcontracts and identify their respective advantages and limitations:
• Buy back contracts
• Revenue sharing contracts
• Pay back contracts
• Cost sharing contracts

2. a) Advantages and limitations of a push-based / pull-based supply chain. Provide an example of a product that would primarily use a push-based or pull-based supply chain.
b) Provide, with explanation, an example of a product which utilize a hybrid push-pull strategy. Identify where the push-pull boundary would be located.

3) a) Characteristics, advantages and limitations between a centralized and a decentralized distribution system.
b) Provide an example of a product that would most likely use centralized or decentralized distribution system

4. a) Factors in outsourcing decision:
• Component clockspeed
• Competitive position
b) Strategy to use for a product when:
• Importance of customer is HIGH / LOW
• Component clockspeed is HIGH / LOW
• Competitive position is HIGH / LOW
• Availability of capable supplier is HIGH / LOW

5. a) Explain, with examples, the following in Fisher’s supply chain model
• Functional product
• Innovative product
b) Supply chain strategy to use for functional products and innovative products

6. a) Fisher’s supply chain strategies:
• Efficient supply chain
• Responsive supply chain
b) Characteristics of products that would be suitable for the above supply chain strategies

7. a) Challenges facing supply chain management with the rapid introduction of new product, shortened life cycles, and proliferation of product varieties.
b) Concepts of following strategy with examples:
• Build-to-Order
• Maintaining larger inventory at major DCs

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