Types of flows in their supply chains

Assignment Help Business Management
Reference no: EM131086221

Question 1: Supply chain managers should be concerned about three types of flows in their supply chains.  What are these three flows, and why are they important?  How are they related to each other? (one  page)

Question 2: The weekly requirement of a part is 5910 units.  The order cost is $260 per order.  The holding cost is $10 per unit per year, and the part cost is $850 per unit.  The firm operates fifty-two weeks per year.  

1. Calculate the following  - Economic order quantity, annual holding cost, annual order cost and the annual purchase cost, and inventory turns per year

2. Suppose the firm is currently ordering once every six weeks.  How much can the company save per year by using economic order quantity instead of ordering once every six weeks?

Question 3: Letni Corporation buys computers from Taiwan.  Shipments are made by ocean carrier.  It takes eight weeks for a shipment to travel from Taiwan to New York.  Letni sells 510,000 computers per year.  Letni buys the computers at a price of $254 per unit.  Answer the following questions-

1. Determine the value of in transit (also known as pipeline) inventory value.

2. Suppose Letni Corporation decides to use air shipments instead of ocean shipping.  What are the cost consequences?  Describe which costs will be affected, and whether they increase or decrease  (about half page)

Question 4: Read the article titled "Apple goes Vertical" (I have listed the article to the end of this question paper).  Provide a one page summary of why Apple is vertically integrating its supply chain.  

Going Vertical With the iPad, Apple returns to an old-and potentially lucrative-way of doing business.

Apple's iPad may be the latest and greatest tech gadget, but oddly enough, it also represents a return to a model that most tech companies long ago abandoned-vertical integration.

Apple has designed its own processor, called A4, to power the iPad. That's a big deal because until now Apple has used chips made by others, like Intel (for the iMac and MacBook Pro) and Samsung (for the iPhone). In addition to the processor, Apple also makes its own operating-system software for the iPad.

Moreover, the only way to get apps for an iPad will be to buy them from Apple. Same goes for content. To get movies, TV shows, books, music-or anything, really-you'll have to buy them from Apple's online store, and the iPad itself will be sold only in Apple stores. From top to bottom this is a closed device, completely controlled by Apple.

Is that a good thing? Vertical integration was the norm back in the 1970s with minicomputer manufacturers like Digital Equipment Corp. and Data General, and later on with workstation makers like Sun Microsystems. But pretty much everyone in tech decided long ago that vertical integration was an unworkable model. Why make your own processors and operating system when you can buy chips from Intel and Windows from Microsoft? It was ironic that on the same day that Apple was announcing the iPad, Sun was holding an event to announce the completion of its takeover by Oracle-ironic because Sun's pricey vertical-integration model was a big reason for the company's decline.

Why is Apple defying the conventional wisdom and going vertical? For one thing, its CEO, Steve Jobs, is a control freak and hates relying on others. Also, Jobs has been around long enough to remember the advantages of a vertically integrated company. If the A4 is as good a processor as people seem to think, Apple's iPad will have a big performance advantage over all the other tablet computers that are about to hit the market.

Apple can get an added performance boost by designing its processor and its operating system in tandem so that they are optimized for each other. The company says the A4 runs at 1GHz, which is slow compared to the 3GHz Intel processors used in most personal computers, including Apple's iMac. Yet the iPad appears to be really fast on some tasks, like zooming on a map and then clicking to pull up a "street view" of that location. After Wednesday's event, Apple's demo people said the iPad is so speedy because its software has been optimized for the processor. That also helps explain how the iPad can run for 10 hours on a single battery charge. Either Apple has designed the processor in such a way that it draws very little power, or it has optimized its video software to do the same thing, or both.

Apple's top-to-bottom control over the iPad is already freaking some people out. Free-software advocates, who believe even regular Macs and Windows PCs are too locked down, were picketing like crazy outside the Apple iPad event in San Francisco. They think it's wrong for computer makers to put copy restrictions on movies and music so that those files can only be played one kind of computer and can't be copied and shared freely; and they claim devices like the iPad are just a trap, a way to draw you into a closed world where you can be exploited by Apple. Will regular folks be spooked? I doubt it. Most people are happy to trade some freedom for the convenience of a device that works seamlessly, like the iPhone.

And what of Apple's risky bet on vertical integration? Won't the high cost of going it alone put Apple at a disadvantage compared to makers that buy chips and software from others? Won't those other guys be able to charge less than Apple? The answer is, probably yes. But again, most people, myself included, are happy to pay more for what Apple makes. My take is that Apple's bet on vertical integration, which seems anachronistic, is actually a stroke of genius. 

Reference no: EM131086221

Questions Cloud

Evaluate the relative success of these strategies : Select one identity group that is now or has historically been a minority or subordinated group in the United States. Your group may be a "minority" based on race, ethnicity, national origin, religion, culture, socioeconomic status, gender, sexua..
Create a windows application to convert meters to feet : There are 39.37 inches in one meter and 12 inches in a foot. If the length is less than one foot, just display the number of inches. Show two digits after the decimal point. Thus 3.4 meters converts to 11.15 feet, while .2 meter converts to 7.87 i..
Rational and political models of policy analysis : Compare and contrast the rational and political models of policy analysis. Debate the advantages of the model that you believe is most influential in policymaking. Support your rationale with two (2) specific examples of your chosen model's influe..
Analyze and support why the etl system is considered : Analyze and support why the ETL system is considered to be the most resource-consuming system in a data warehouse framework. Take a position on the author's opinion of semi-structured DMM over structured DMM. Support your position with evidence.
Types of flows in their supply chains : Supply chain managers should be concerned about three types of flows in their supply chains.  What are these three flows, and why are they important?  How are they related to each other? (one  page)
What is leadership doing to improve the standard of living : What is leadership doing to improve the standard of living in developing countries. Select (1) one developing country, and discuss the fundamental actions that the leadership of the selected country is - or is not - taking to improve the living s..
Create a windows application to determine how many months : Create a Windows application to determine how many months
Write a response paper to the documentary you watched : Write a response paper to the documentary you watched. Your Response paper should integrate a brief summary of the main ideas from the documentary and include a critical analysis of it. Response paper should be no less than 400 words.
Does marketing reflect the needs and wants of consumers : Does marketing reflect the needs and wants of consumers or does marketing shape consumer needs and wants? Please answer this in 300 words or more.

Reviews

Write a Review

 

Business Management Questions & Answers

  What role does pr play in your organization

What role does PR play in your organization and describe your answer. How is PR utilized in various types of organizations?

  Implementation of evidence-based practice

Identify barriers to the implementation of evidence-based practice. What are the two ways to address this problem? With references peer reviewed evidence based.

  Explaining poor decission focalism

In your opinion, what caused the poor decission to be made? could focalism and/or focusing illusion have played a part in the failure?

  What other companies make profit but also benefit society?

What other companies make profit but also benefit society? Discuss

  Midst of labor-management negotiations

In the midst of labor-management negotiations, the president of a company argues that the company's blue-collar workers, who are paid an average of $30,000 per year, are well paid because the mean annual income of all blue-collar workers in the co..

  Explain what differences are and what skills are critical

The changing business and global environment in the 21st century will demand successful leaders of the future to have different skills and characteristics than the leader in the past. If you agree, please explain what the differences are and wh..

  Why do you think functional silos are not appropriate for

1. list the horizontal and vertical levels of systems that exist in organizations.2. describe at least five steps

  Why goals are important to the strategy of an organization

Explain why the 3 types of goals are important to the strategy of an organization. Explain why the different types of planning are important to the strategy of an organization

  Determing medium for sending specific messages

Which medium(or media) do you think would be appropriate for each of the following kinds of messages that a subordinate could receive from his or her boss:

  Determining the value of a possible investment

Time is a factor when determining the value of a possible investment.  As investors, all else being equal, we value investments

  Express how compliance plans correlate to different medical

Express how compliance plans correlate to different medical records documentation standards. Which steps in the medical billing process studied of Medical Insurance are related to the subsequent:

  Women and minorities face the glass ceilingwomen and

women and minorities face the glass ceilingwomen and minorities often face what is called a glass ceiling. why would

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd