Network and Systems Design

Weeks 3 & 4 Essay Questions
SCMG 201 – Principles of Supply Chain Management
Student Name
Chapter 3: Network and Systems Design (Questions 1 through 5)
Question 1: There are two views on how to manage processes across a supply chain. Research these two views both in your textbook and on the internet, and then describe each view, the primary focus, the advantages and disadvantages of both, and find an example of each on the internet. DO NOT copy or paraphrase your textbook; use your own words in defining these two views.
The two views for how to manage processes across a supply chain are Push and Pull. Push strategy focuses on forecasting demand and producing goods in advance to meet that predicted demand. The primary focus is on managing inventory and forecasting demand. The advantages of this strategy are that it can reduce the risk of stockouts and it can reduce the costs associated with carrying inventory. The disadvantages are that it can lead to overproduction and increased inventory carrying costs. An example of this strategy is the Just-In-Time (JIT) manufacturing system used by Toyota.
Pull strategy, on the other hand, focuses on producing goods only when there is present customer demand. The primary focus is on managing customer demand and reacting to it in real-time. The advantages of this strategy are that it can reduce lead times and it can reduce the costs associated with carrying inventory. The disadvantages are that it can lead to stockouts and increased lead times. An example of this strategy is the Kanban system used by Dell. Both strategies have their own advantages and disadvantages; it depends on the company's objectives, market conditions, and product characteristics.
Question 2: Assume a retail harbor can process 28,000 containers from cargo freight ships per day, under maximum conditions, using overtime hours. The harbor offloading facility was designed to process 22,000 containers per day under normal conditions. During the month of July, the harbor facility processed 19,000 containers per day. Calculate the harbor's ability to offload containers for both design and effective capacity. Show the formulas and the steps using Microsoft Office's "Insert ( Equation” function.
To calculate the harbor’s ability to offload containers for both design and effective capacity, we can use the following formulas:
Design capacity utilization: (Actual production / Design capacity) x 100
Effective capacity utilization: (Actual production / Normal capacity) x 100
The design capacity for the harbor offloading facility is 28,000 containers per day using overtime hours. The normal capacity is 22,000 containers per day. And the actual production for the month of July is 19,000 containers per day.
Design capacity utilization = (19,000 / 28,000) x 100 = 67.86%
Effective capacity utilization = (19,000 / 22,000) x 100 = 86.36%
These numbers tell us that the harbor offloading facility was operating at 67.86% of its design capacity and 86.36% of its normal capacity in July. This suggests that the harbor offloading facility was operating below its design capacity but above its normal capacity.
Question 3: Using the Word "Smart Art Function," create three separate illustrati...