COURSE CODE: BBA311 SCM COURSE NAME: Supply Chain Management CLASS CODE: BCN15204 Task  Individual task  Essay  Questions: o RIMOWER company has been in the Cosmetic industry for 10 years. They sell in Spain market only. They have 100 employees. They sell 2.100.000 units on average per year. This year, they expect the demand to raise 12% due to COVID19 constrains reduction. It takes 0.7h for a normal employee to process an order and email it out to our suppliers. RIMOWER has a factory and warehouse with very tight space to produce current demand, so we need to manage space and shipments and deliveries very careful. We are lucky we have a good agreement with the transport company and for a dedicated truck we only pay 2.5€/Km (whatever the number of units we order). Holding stock, cost us 5€ a year Last week RIMOWER commercial Director went to negotiate new prices with their only one supplier that is 500Km far from our factory/warehouse, and I could get a new price per unit of 4€/unit. Labor cost is 20€/h flat rate in all the areas and employees in the company.  As per the EOQ model, please calculate Quantity to order, expected number of orders they should place during the year, optimal time between orders and the Total Cost. o Historical RIMOWER sales are as per following chart. Please decide which would be the best 2022 forecast by using the following two calculation models: Moving Average (4years) and Weighted Moving Average (2 years, 0.25 year 1 and 0.75 year 2). For both cases, please disregard 2020 sales due to COVID reasons. Please attach excel with calculations and explanations. o Among the Industry 4.0 technologies we shared in class, what would you use in each of the following models to reduce risks?  Anticipatory model  Responsive model  Postponement model Formalities:  Wordcount: 1.750  Cover, Table of Contents, References and Appendix are excluded of the total wordcount.  Font: Arial 12,5 pts.  Text alignment: Justified.  The in-text References and the Bibliography have to be in Harvard’s citation style. Submission: Week 9 – Via Moodle (Turnitin). Specific day and hour limit: Sunday 28th November at 23:59CEST Weight: This task is a 30% of your total grade for this subject. Between- and Within Designs Overview.html Considerations in Choosing a Sample.html Considerations in Choosing a SampleConsiderations Before Choosing an Experimental Design You are conducting a study on caffeine to see how it alters alertness. For this type of study, you could choose to use either design. The choice of design might be made as a result of answers to several questions. Question:  How many participants are available? Consider:  If you do not have a large number of participants, you may need to use a Within-Subject design. Question: How many participants are needed to find a statistical difference? Consider: Finding a statistical difference is related to the size of the sample. If the ...

1. COURSE CODE: BBA311 SCM COURSE NAME: Supply
Chain Management CLASS CODE: BCN15204
Task
o RIMOWER company has been in the Cosmetic industry for 10
years. They sell in Spain market only. They have 100
employees. They sell
2.100.000 units on average per year. This year, they expect the
demand to raise 12% due to COVID19 constrains reduction. It
takes 0.7h for a
normal employee to process an order and email it out to our
suppliers. RIMOWER has a factory and warehouse with very
tight space to produce
current demand, so we need to manage space and shipments and
deliveries very careful. We are lucky we have a good agreement
with the
transport company and for a dedicated truck we only pay
2.5€/Km (whatever the number of units we order). Holding
stock, cost us 5€ a year
Last week RIMOWER commercial Director went to negotiate
new prices with their only one supplier that is 500Km far from
our
factory/warehouse, and I could get a new price per unit of
4€/unit. Labor cost is 20€/h flat rate in all the areas and
employees in the company.

2. expected number of orders they should place during the year,
optimal time
between orders and the Total Cost.
o Historical RIMOWER sales are as per following chart. Please
decide which would be the best 2022 forecast by using the
following two calculation
models: Moving Average (4years) and Weighted Moving
Average (2 years, 0.25 year 1 and 0.75 year 2). For both cases,
please disregard 2020
sales due to COVID reasons. Please attach excel with
calculations and explanations.
o Among the Industry 4.0 technologies we shared in class, what
would you use in each of the following models to reduce
risks?
Formalities:
excluded of the total wordcount.
-text References and the Bibliography have to be in
Harvard’s citation style.
Submission: Week 9 – Via Moodle (Turnitin). Specific day and
hour limit: Sunday 28th November at 23:59CEST

3. Weight: This task is a 30% of your total grade for this subject.
Between- and Within Designs Overview.html
Considerations in Choosing a Sample.html
Considerations in Choosing a SampleConsiderations Before
Choosing an Experimental Design
You are conducting a study on caffeine to see how it alters
alertness. For this type of study, you could choose to use either
design. The choice of design might be made as a result of
answers to several questions.
Question: How many participants are available?
Consider: If you do not have a large number of participants,
you may need to use a Within-Subject design.
Question: How many participants are needed to find a statistical
difference?
Consider: Finding a statistical difference is related to the size of
the sample. If the behavioral measure is robust, then it may
show up with a smaller group size. If the effect is difficult to
detect, more participants will be needed.
Question: What kind of independent variable is being
manipulated?
Consider: The study on caffeine and alertness could work with a
Within-Subject design if you allowed enough time between the
testing sessions for the previous caffeine exposure to wear off.
Understanding Experimental Designs.html
Understanding Experimental DesignsUnderstanding
Experimental Designs
Either the Between-Subject or the Within-Subject experimental

4. designs can be used to compare more than two levels of the
independent variable. When there are more than two levels of
the independent variable, the Between-Subject design is called a
simple analysis of variance (ANOVA) and the Within-Subject
design is called a repeated-measures ANOVA.
Although experiments are needed to make cause/effect
statements, each study design serves a useful role in helping
find answers about behavior. As evidence is collected from the
different types of designs with a variety of data-collection
methods, theories are strengthened in each setting. Evidence
from studies converges to build support and you find more
plausible and more accurate answers. This is as close as you can
get to scientific truth.Understanding ANOVA and MANOVA
Univariate analysis of variance (ANOVA) tests the significance
of differences between groups. For example, a student could use
an ANOVA to study how students who drank no coffee, eight
ounces of coffee, or sixteen ounces of coffee within the last
three hours performed on a written exam.
A multivariate analysis of variance (MANOVA) is similar to
ANOVA, but MANOVA tests several dependent variables. In
addition, there may be correlations between the dependent
variables, and MANOVA controls for this. An example of when
to use a MANOVA would be if you were investigating how
participation in a group to teach patients to navigate the
healthcare system affected their perceptions of using the
emergency room (ER). The dependent variables would be
number of sessions attended, previous number of visits to the
(ER), and perceived quality of care given in the
ER.Additional Materials
View the PDF transcript for Understanding ANOVA and
Repeated Measures
media/transcripts/SUO_PSY2060 Understanding ANOVA and
Repeated Measures.pdf

5. Understanding ANOVA and Repeated
Measures
PSY2060 Research methods
©2016 South University
2
Understanding ANOVA and Repeated Measures
Understanding experimental designs
Understanding ANOVA and Repeated-Measures
Using the example of caffeine and attention, you could compare
how the design would work if
you had three separate groups of participants or one group that
gets each level of the independent
variable.
Compare the information for the ANOVA and the Repeated
Measures designs. There are some
similarities such as the number of levels and the amount of
caffeine each participant is exposed to at each
level. The differences relate to the number of participants
needed. The number needed for the ANOVA is
larger. The same participants go from one level to the next in

6. the Repeated Measures group. Although
using the same group of participants reduces the number of
participants needed, you can see how
carryover effects can occur.
Independent
Variable
Levels
Amount of
Caffeine
0 mg 90 mg 180 mg
Participants
in Each Group
20 20 20
Independent
Variable
Levels
1 2 3
Amount of
Caffeine
0 mg 90 mg 180 mg
same same

7. 20 20 20
Participants
in Each Group
20 Participants
in sample; each
person gets ever
level of the
independent
va riable.
60 Participants
in Sample
Repeated Measures Example
Independent Variable: Milligrams (mg) of caffeine in coffee
Dependent
Variable: Sustained driving ability on a simulated test
ANOVA Example
Independent Variable: Milligrams (mg) of caffeine in coffee
Dependent
Variable: Sustained driving ability on a simulated test

8. 1 2 3
PSY2060 Research methods
©2016 South University
3
Understanding ANOVA and Repeated Measures
Understanding experimental designs
WSDs take fewer participants and have more statistical power.
The major disadvantage is the
possibility of practice effects and carryover effects. Practice
and carryover effects occur because the
same group of participants is exposed to all levels of the
independent variable. The practice and carryover
effect is the result of memory, residual trace of previous
exposure to the testing conditions, or
overexposure to the independent variable. There are different
strategies for dealing with these effects.
You can counterbalance the trials or equalize the amount of
practice.
Longitudinal studies are a type of WSD that requires the
investigator to follow a particular group
over a long period of time.

9. © 2016 South University
SUPPLY CHAIN MANAGEMENT
Course code: BBA311
WAREHOUSING & PACKAGING (1)
UNIT 7
• “ABC item segmentation”
• Strategic Warehouse
– Economic Benefits
– Service Benefits
• Warehouse Operations
• Warehouse ownership arrangements
• Rigid and flexible containers. Pallets.
• Materials handling:
– Mechanized systems
– Semi-automated systems

10. – Automated systems definitions
Unit 7: index
ABC segmentation
• Calculation and graphical representation tool that allows us to
classify
any element, event, item, value by its degree of importance
considering
a specific factor.
• The methodolgy we will be using is the PARETO analysis,
also called
the 80/20 rule
• Related to the warehouse, we can look at three diferent point
of
attention for our analysis
20
%
80%
FACTORS TO CONSIDER
ABC segmentation
VALUE
VOLUME MOVEMENTS

11. FINANCIAL
COST AND
ASSURANCE
LEVEL
STORAGE
COST AND
SPACE
HANDLING
COST
ELEMENTS TO MANAGE
ABC segmentation
ABC is grouping items in 3 categories:
20%
30%
50%
80%
10%
10%
A

12. B
C
Category Items Factor
ABC segmentation: stock
ITEM CODE STOCK UNIT VALUE
1 200 0,5
2 10 0,75
3 12 0,48
4 11 0,16
5 13 1
6 9 0,96
7 8 0,74
8 14 1
9 15 0,47
10 125 0,99
ITEM CODE ITEM order % order STOCK UNIT VALUE
TOTAL VALUE Add up stock Pareto
1 1 10% 200 0,5 100 200 48%
10 2 20% 125 0,99 123,75 325 78%
9 3 30% 15 0,47 7,05 340 82%
8 4 40% 14 1 14 354 85%
5 5 50% 13 1 13 367 88%
3 6 60% 12 0,48 5,76 379 91%
4 7 70% 11 0,16 1,76 390 94%
2 8 80% 10 0,75 7,5 400 96%
6 9 90% 9 0,96 8,64 409 98%

13. 7 10 100% 8 0,74 5,92 417 100%
10 417 287,38
ABC segmentation: value
ITEM CODE STOCK UNIT VALUE
1 200 0,5
2 10 0,75
3 12 0,48
4 11 0,16
5 13 1
6 9 0,96
7 8 0,74
8 14 1
9 15 0,47
10 125 0,99
ITEM CODE ITEM order % order STOCK UNIT VALUE
TOTAL VALUE Add up value Pareto
10 1 10% 125 0,99 123,75 123,75 43%
1 2 20% 200 0,5 100 223,75 78%
8 3 30% 14 1 14 237,75 83%
5 4 40% 13 1 13 250,75 87%
6 5 50% 9 0,96 8,64 259,39 90%
2 6 60% 10 0,75 7,5 266,89 93%
9 7 70% 15 0,47 7,05 273,94 95%
7 8 80% 8 0,74 5,92 279,86 97%
3 9 90% 12 0,48 5,76 285,62 99%
4 10 100% 11 0,16 1,76 287,38 100%
10 417 287,38

14. Warehouse
Warehouse
Defining WAREHOUSE:
Source: dictionary.cambridge.org
Warehouse
Why do we need a WAREHOUSE:
• MAIN USE:
– Store goods while they are not moved to another location
– Store goods in a safe manner (avoid damages or avoid
perishable goods
going bad)
• OTHER USES
– Shipment hub
– Assembly line
– Rental storage space
Warehouse

15. Sprinklers
Fire hoses
Fire extinguisher
Ventilators
Pedestrians path
CCTV (closed circuit
tv)
Crash protections
Protective fences
“Everything you
thing can protect and
save lives”
Forklift trucks
AGV
Cobots and Robots
Rack
Automatic order
preparation line
Order picking
trolleys
Packaging machinery

16. Computers
Repacking and
handling areas
SAFETY FIRST
WMS
Pillars and walls
Docks
Emergency exits
Charging batteries
room
Warehouse
TO TAKE INTO ACCOUNT WHEN DESINING AND
DEFINING A
WAREHOUSE
• Company size
• Business industry the company belongs to
• Movements
• Stocks
• Legal requirements

17. • Customer requirements
• Activities
• Processes
• Location
Warehouse
• LOCATION: centre of gravity calculation. This is the exact
location where
the transport costs are the lowest ones.
A B
¿C?
Distance
Volume
# Shipments
Transport costs
Delivery lead-times
Topography
Country specifics
Sourcing Customer
Warehouse

18. • Assumptions:
– same €/km cost
– same amount of shipments to the Customers
Customer
Location
Coordinate
X
Coordinate
Y
Kg Sold
C1 150 125 2.300
C2 225 50 1.500
C3 420 270 3.300
C4 230 380 1.750
Warehouse
• Assuming same €/km cost in the area
• Assuming that I ship the same amount of times to the
Customers
Xo
∑(Xc * Qc)
∑ Qc

19. Yo
∑(Yc * Qc)
∑ Qc
SUPPLY CHAIN MANAGEMENT
Course code: BBA311
WAREHOUSING & PACKAGING (2)
UNIT 7
• “ABC item segmentation”
• Strategic Warehouse
– Economic Benefits
– Service Benefits
• Warehouse Operations
• Warehouse ownership arrangements
• Rigid and flexible containers. Pallets.
• Materials handling:
– Mechanized systems

20. – Semi-automated systems
– Automated systems definitions
Unit 7: index
Warehouse
Why we do not want to have warehouses?
• Ideally we would prefer not to have inventory to store.
Movements
• It requires investment (ASSETS): stock, infrastructure,
training, etc.
• It leads to expenses: maintenance, transport, salaries, etc.
• Risk of product being obsolete.
• Risk of product being lost
• Sometimes we need more than one (centralized or des-
centralized
model)
Warehouse
• LOCATION: Weber calculation. Least cost theory, location
model.

21. Transportation
Labour costs
Agglomeration
RM weight > FG weight
RM weight loss/gain
during the process
RW shipping cost > FG
shipping cost
RM weight < FG weight
RM weight gain during
the process
RW shipping cost < FG
shipping cost
FOCUS ON:
FOCUS ON
MARKET
LOCATION:
FOCUS ON
SOURCING
LOCATION:
Example: perishable and AutoExample: Lumber and Steel
Warehouse:
criteria for decision

22. Location
• Accessibility
• Nearby
services
• Potential
growth
• Tax and
subsidies
• Prices and
payment
terms
Company
• Micro/SME
/Big/
multinational
• #employees
• Income
• Technology
• Company
assets
Product type
• Raw materials

23. • Semi-finished
product (WIP)
• Spare parts
• Finished
goods
• Packaging
Specific
requirements
• Hazardous
• Flammables
• Temperature
• Expiration
Finance Model
• Owner
• Leasing
• Rental
• Outsourcing
(logistics
operator)
Handling unit

24. • Pallet
• Barrel
• Boxes
• Containers
• Units
• Crates
Warehouse: activities
MAIN activities
• Goods IN, reception
• Storage
• Order preparation
• Goods OUT, shipping
OTHER activities
• Returns management
(reverse logistic)
• Product reworking
(transform product A

25. into product B)
ADMIN activities
• Customer service
• Transport management
• H&S
• Continuous
improvement
• HR
• Maintenance
Warehouse: GOODS IN
• Unload
• Count
• Pallet construction
• Material id
• Material location
Warehouse: STORAGE

26. • STORAGE
– Floor storage
– Rack storage
– Compact storage
• ID location
• FIFO vs LIFO
FIFOFIFO LIFOLIFOVS.
Warehouse: ORDER PREPARATION
• Full box order preparation
• Full pallet order preparation
• Picking order preparation:
– https://youtu.be/frY6jcANpRk (voice)
– https://youtu.be/JeXeF8muwuw (light)
– https://youtu.be/gnUK-HTn4ZA (vision)
• Replenishment
Warehouse: ORDER PREPARATION

27. • Automatic warehouse:
– https://youtu.be/ZBRoXW6YtGI
• New technologies
– Robots https://youtu.be/4DKrcpa8Z_E
– Amazon https://youtu.be/IMPbKVb8y8s
Warehouse: GOODS OUT
• Sorting
• Packing
• Loading
• Cross docking
Warehouse: OTHER activities
• Returns
• Reworking
– Labelling
– Packs
– Etc.

28. Warehouse: AREAS
Goods In Goods Out
Offices/Changing
room/ common areas
Offices/Changing
room/ common areas
Charging
battery
roomRework
STORAGE
Picking line
Warehouse: FLOW
Goods In Goods Out
Offices/Changing
room/ common areas
Offices/Changing
room/ common areas
Charging
battery
roomRework
STORAGE

29. Picking line
Warehouse: ABC
Goods In Goods Out
Offices/Changing
room/ common areas
Offices/Changing
room/ common areas
Charging
battery
roomRework
STORAGE
Picking line
A
A
A
CC C
B
B
B

30. Warehouse: Admin operations
PROBLEM ACTION
# Area Customer What Who When Why Problem caused € What
Who When € Did it work?
Indicator PROBLEM analysis:
• # problems per week, area and customer
• # € lost per week, area and customer
• “Who”. Training needed?
Indicator ACTION analysis:
• # actions per week, area and customer
• How good am I closing: “when” vs “when”
• Pending to close
• # € spent
• Successful action rate
Warehouse: TAGS
One dimension
barcode label
Two dimension
barcode label
RFID label
Warehouse: RFID vs Barcode label

31. PROS:
• Scanning distance
• No need for the product to be in motion
• No line of sight needed
• Allow scanning more than one at a time
• Reusable, it lasts for a lot longer
• More info capacity (work and repair
history) and actions allowed (tracking)
• Higher level of security (encrypt)
• Lower labour cost overall in the
warehouse operations
CONS:
• Special printers to be used
• Higher cost
• Not as flexible for specific actions
• Standards still not clear worldwide
NFC (Near Field
Communication)
Reader or tag

32. Only short distance
SUPPLY CHAIN MANAGEMENT
Course code: BBA311
INVENTORY MANAGEMENT (2)
UNIT 6
• Definitions of inventory
• Planning inventory
• Economic Order Quantity
• Inventory management policies
• Materials Requirements Planning (MRP)
Unit 6: index
Inventory Types
Stock concepts
according to

33. its nature
Raw materials
WIP
Finished Goods
Spare parts
Packaging
Stock concepts
according its
functionality
Cycle stock
Safety stock
Seasonal stock
Stock in transit
Speculative stock
Recovery stock
Obsolete stock
Stock concepts
according to
its operation
use
Optimal stock
Zero stock
Physical stock
Net stock
Available stock
Planning Inventory

34. Forecast
demand
+
Firm orders
Commercial
team
+
Market
research
+
Logistics
+
Purchasing
Seasonality
+
Life cycle
+
Current and
Historical
sales
+
Consumer
trends
PLAN

35. Make sure
there are units
for everyone
when needed
• OBJECTIVE OF EOQ:
Economic Order Quantity
LOWER
INVENTORY
COSTS
ORDER
COSTS
FIND THE BEST
QUANTITY TO
ORDER TO:
CARRYING
COSTS
EOQ
2 x D x S√ H
D= demand rate (in units)
S= order costs
H= holding costs

36. Economic Order Quantity
N
D
EOQ
Expected Number
of Orders
TEOQ
2 x S
√D x H
Optimal time
between orders
CvEOQ √2xDxSxH
Variable
cost
T
Working days per year
N
Expected Time Between Orders
d
D
Working days per year

37. Fixed
Cost
Fixed
Cost
Economic Order Quantity
TC
D
Q
Fixed-Order-Quantity Model.
TOTAL COST
D x C x S
Q
2
x H
TC= Total Cost
D= demand rate (in units)
C= cost per unit
Q= quantity to be ordered
S= order costs
H= holding costs per unit
H= i x C i= carrying “interest”

38. rate, % of € value per period
Cv= variable cost
Annual
Order
Set up
Cost
Annual
Order
Set up
Cost
Annual
Holding
Cost
Annual
Holding
Cost
D x CTC
EOQ
Cv EOQ
EOQ Model. TOTAL COST
Inventory Management Policies
• Periodic, order-up-to policy: Time and Stock defined (T,S)

39. • Fixed order quantity policy: Reorder point and Quantity
defined (R,Q)
• Continuous, order-up-to policy (Min,Max)
• Days of supply (DOS)
– Demand based
– Forecast based
SuppliersSuppliers,
Inventory
checks and
policy help
being
responsive
Material Requirements Planning
MPS
(Master Production Schedule)
INVENTORY
BOM
(Bill of Materials)
Purchase or Replenishment
Work Order

40. Reporting
MRP
(Material
Requirements
Planning)
MRP
(Material
Requirements
Planning)
Material Requirements Planning
BOM
(Bill of Materials)
Every single part of a
BOM need:
• to have a specific
code assigned
• to belong to a
specific level in the
structure
Material Requirements Planning

41. Reduce inventories
Reduce waiting times
Be realistic with the plan
Increase efficiency
Provide early alerts
Long term scenario
MRP
(Material
Requirements
Planning)
MRP
(Material
Requirements
Planning)
OBJECTIVES
Inventory waste 1. Overproduction
2. Waiting time
3. Freight
4. Too many
processes

42. 5. Inventory
6. Too many
operations
7. Too many
movements
8. Employee
capacity
Inventory cycle
Goods in
Raw
material
inventory
WIP
inventory
Finished
Good
inventory
Manufacturing
Invoice to
Customer

43. A company is dedicated to the commercialization of Electronic
products
through speculative purchase. You want to know what the best
supply policy
is for a new GPS device. You want to buy 6000 computers in a
year. They
make you sign a contract to give it to you at a very affordable
price, € 30 each.
The cost of administering an order is € 125 and the storage cost
is € 6 per
year. The provider's lead time is 60 days.
Calculate:
1. Cost of the item as per the fix order quantity model
2. Cost of the item as per the EOQ model. You can also
calculate:
1. Optimal batch quantity
2. Expected number of orders
3. Time between orders
4. Item cost
5. Security stock
Case: