Problem Shieet 21

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Assignment 2 (Due December 13)

Please read the following instructions carefully.

• Please submit your answer report at the beginning of class on December 13. • Late analyses will not be accepted.
• You may discuss the assignment with your classmates. • You should individually prepare and submit your report. • The answers should show all steps but be concise and to the point. • Your answer report should be prepared in WORD and printed in A4 or letter size sheets.

Solve the following problems.
(Numbered problems are from the textbook 8th edition.)

1. Mr. Smith would like to set up a package delivery service for 7 cities (Atlanta, Chicago, Dallas, D.C., Los Angeles, New York, and San Francisco). If a flight line covers a round trip between cities, how many flight lines are needed to connect 7 cities directly each other? If he introduces a hub in Memphis, how many flight lines are needed to connect 7 cities and Memphis directly?

2. Problem 8.17

3. Problem 8.21

4. Describe briefly the following techniques in warehousing and storage layouts: cross-docking
random stocking
customizing

5. Problem 9.6

6. In the class discussion, we suspected that high-low pricing is one of the contributing factors that generate the bullwhip effect. What would be a counter measure to avoid the bullwhip effect caused by high-low pricing?

7. What environment is best suited for the responsive supply chain in terms of (1) new service/product introduction, (2) contribution margins, and (3) product variety?

8. Problem 12.12
9. What is the definition of service level in the newsvendor inventory model?

10. The Brooks Sisters Company has its retail stores in Chicago, Los Angeles, New York, and San Francisco. The demand for a certain type of fashionable shirt in each city follows a normal distribution with a mean of 200 and a standard deviation of 50. The demands are assumed to be independent of...
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