http://essaysreasy.com .That's a sample paper - essay / paper on the topic "Supply chain management exam" created by our writers! Disclaimer: The paper above have been completed for actual clients. We have acclaimed personal permission from the customers to post it.

1. 1
Supply Chain Management Exam
The Bis Corporation
In order to make a decision about the network configuration of the Bis Corporation,
information about the cost of storage in both primary and secondary warehouses is needed.
Secondly, transportation time should be considered. Also, possible sizes and frequencies of
delivery (concerted with customer demand) are important. Finally, it is necessary to consider
other transportation modes, as well as the cost and time of transportation between secondary
warehouses, as some of them can be closer to each other than to the primary warehouse.
American Tool Works
Due to VMI agreements with midsize and small distributors, ATW may face certain
risks. These distributors may be less competent in various products and customer needs, as they
have fewer possibilities to access a good market analysis. They are likely to have lower stock
levels than large distributors. For ATW, it will be more time and cost consuming to make
deliveries as frequently as with large distributors. It will be more difficult for ATW to manage its
inventory at these distributors’ facilities and monitor demand. This can influence its production
and make ATW less adaptable. On the other hand, midsize and small distributors may face the
risk of delays due to an increased number of distributors that ATW should serve (D. Simchi-
Levi, Kaminsky, and E. Simchi-Levi, 2007, p. 124). Also, they are less likely to get discounts, as
they are less likely to make bulk purchases. This increases the risk of higher pricing.
Meditech Surgical
1. The major Meditech Surgical’s problem is customer dissatisfaction. This is connected
to another problem, namely delays in delivery of its products, especially new ones, when demand
increases greatly immediately after their introduction. Inability to meet this increased demand

2. 2
points to the problems of limited product capacity and improper delivery service. Thus, overall
customer service suffers and becomes uncompetitive.
2. One of the reasons for poor delivery is strong reliance on dealer network. Dealers may
not consider end customers’ needs immediately due to managing many products and may cause
delivery to be late. Second reason is improper demand forecasting. This is connected to another
cause of the company’s problems, namely low reliance on real demand and needs. One more
reason is the absence of common data on different warehouses and zones, which makes
forecasting less reliable. Also, high inventory levels are likely to make the company less
adaptable. Finally, panic ordering adds greatly to the company’s problems of manufacturing and
supplying (D. Simchi-Levi, Kaminsky, and E. Simchi-Levi, 2007, pp. 18-19, pp. 23-24)
3. So, the company should consider the possibility of selling more to end-customers and
enabling them to order beforehand. The elements of the pull system should be used, especially in
terms of inventory storage and demand forecasting. Additionally, Meditech Surgical should
improve its planning while drawing long-term contracts and agreements. Also, the monitoring of
orders and inventory should be improved.
Reebok
1. The major problem faced by Reebok is high demand uncertainty. The popularity of its
replica jerseys is determined by sport events. The football team that wins creates the biggest
demand. This is even truer for team players becoming unexpected winners. So, it is very difficult
to meet unexpected shifts in demand and plan production. Moreover, Reebok may have losses
due to already unpopular jerseys (D. Simchi-Levi, Kaminsky, and E. Simchi-Levi, 2007, p. 173).
2. One of the major causes of Reebok’s problems is unpredictability of sport games and
their results. Also, teams may change their colours and emblems. Football players can suddenly

3. 3
leave their careers or become very successful. Besides, it is difficult to find effective forecasting
techniques that could provide more precise results. Another factor is lead time and time of blank
jersey production. Additionally, the inventory of blank jerseys adds to the planning problem. On
the other hand, limitations for minimal orders with manufacturers bound Reebok’s flexibility.
3. Therefore, Reebok should improve its forecasting techniques by involving specialized
experts’ information. Also, it should decrease its lead time through better planning and try to cut
production time. In this context, it may consider choosing other manufacturers that are located
within a closer distance. Additionally, Reebok can sell its leftover jerseys in other countries or in
other places, where the colors and teams are still popular.

4. 4
References
Simchi-Levi, D., Kaminsky, Ph., and Simchi-Levi, E. (2007). Designing and Managing the
Supply Chain. Concepts, Strategies, and Case Studies (3rd. ed.). New-York, NY:
McGraw-Hill.