Supply CH

Supply CH
a. A detail analysis of customer demand in the five market areas reveals that the demand in the given regions
is very similar: that is, it is common that if weekly demand is one region above average, so is the weekly demand
in other regions. How does this observations affect the attractiveness of the new system based on modifying the
problem as follow:
• For the last 6 weeks (Weeks 7 – 12), the average weekly demand for Atlanta is 20% higher than shown on Table 2-11
and the individual weekly demands for weeks 7 – 12 are adjusted appropriately
• For the last 6 weeks (Weeks 7 – 12), the average weekly demand for Boston is 10% higher than shown on Table 2-11
and the individual weekly demands for weeks 7 – 12 are adjusted appropriately
• The demand for Chicago is remains the same as shown on Table 2-11
• For the last 6 weeks (Weeks 7 – 12), the average weekly demand for Dallas is 10% lower than shown on Table 2-11
and the individual weekly demands for weeks 7 – 12 are adjusted appropriately
• For the last 6 weeks (Weeks 7 – 12), the average weekly demand for Los Angeles is 20% lower than shown on Table
2-11 and the individual weekly demands for weeks 7 – 12 are adjusted appropriately(270 words if needed)
2. Based on the results from 1) and the solved practice problem 1), discuss how the demand forecast can affect the
ability to meet the demand. Discuss the implications on supply chain management practices. Provide appropriate
analytical data supporting your conclusions(270 words)
3. Appendix B, the Risk Pool Game repeat this game as follows:(270 Words)
a) test the sensitive of the demand correlation, hence compare the order results for the following three scenarios
while keeping everything else constant:
• Strong negative correlation
• Independent demand (no correlation)
• Strong positive correlation
b) Test the sensitivity of the inventory policy, by comparing the two default inventory policies while holding
everything else constant
4. From your results in 2) and 3), discuss the results of different inventory policies and the use of a centralized
or decentralized system on the ability to fulfill the demand. Discuss the implications on supply chain(270 words)

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Source:
Designing and Managing the Supply Chai: Concepts, Strategies and Case Studies, Third Edition , PG 61-63, Appendix
B, PG 472-479
Authors: David Simchi-Levi, Phillip Kaminsky, Edith Simchi-Levi
Copy right: 2008
Publisher McGraw-Hill Irwin
1221 Avenue of the Americas
New York, NY 10020
ISBN: 978-0-07-298239-8