Question 1

Choose a company either you are currently working for or you are familiar with. The

company must engage in the business activities of distributing products and/or services in a

supply chain network. Conduct research on the activities of supply chain management of the

company and answer the following questions based on your findings.

a) Explain the role of the supply chain functions in supporting the overall competitive

strategy of this particular company. You should briefly describe the company and

include a sketch that shows the value chain of the company.

b) Relate any three (3) issues or challenges that this company faces in achieving the

strategic fit between its competitive strategy and its supply chain strategy.

c) Show how e-business can affect this company’s distribution network in terms of

customer service and cost. You should focus on two (2) aspects of customer service

and two (2) elements of cost that you consider are important to this company.

Question 2

Go-Direct is a newly established trading company in Malaysia. It operates on the business

model of sourcing personal computers from the contract manufacturers and delivering

directly to the customers. You are hired as a consultant to design a transport network that

allows its supply chain to achieve the desired degree of responsiveness at a low cost.

a) What is the role of transport in Go-Direct’s supply chain? Identify the four parties that

can influence the effectiveness of transport in Go-Direct’s supply chain.

b) Apply your knowledge of effective design options for a transport network to

determine the suitability of “Direct Shipment Network” and “Direct Shipments with

Milk Runs” as transport network options for Go-Direct.

The contract manufacturers are experiencing high variability in demand for the personal

computers in a very competitive market.

c) Analyse how contract manufacturers can manage their supply to respond to the

variability in its supply chain. You should suggest four (4) approaches that the

contract manufacturers can take and support your answer with good reasons.

Question 3

Globalisation is taking a new turn. Some of the companies which went offshoring to low cost

destinations are relocating their facilities back to their home countries. This phenomenon is

called as “reshoring”. Maxtron Inc., a manufacturer of lifestyle electronics products, has been

manufacturing in a low cost destination. Its products are associated with low volume, high

variety, high value and short life-cycle. It is relocating to set-up a new plant in USA to

leverage on the local sources for its materials and reach to the customers in American market.

The following table shows the transport cost, shipments and location coordinates of sources

and markets

Xn and Yn are location coordinates from either the market or the source (miles).

Dn is the quantity of products to be shipped from the source or market (tons).

Fn is the cost of transport from the source and the market locations in $/ton mile.

 n is each source or market (n = 1, 2, 3)

 Coordinates of the identified location of the plant are X = 550, Y = 650.

a) Discuss three (3) tailored risk mitigation strategies for dealing with costs in

Maxtron’s global supply chain. Support your discussion with good reasons.

(15 marks)

b) Examine Maxtron’s supply chain network by using the gravity location model to

determine the following:

i) Coordinates of the optimised location for reshoring Maxtron’s new plant.

ii) Total optimal transport cost in Maxtron’s supply chain.

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