Scm Open Book Qmjzg621

Topics: Mobile phone, Inventory, Supply chain management Pages: 3 (831 words) Published: September 1, 2013
Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division Second Semester 2008-2009 Comprehensive Examination (EC-2 Regular) Course No. Course Title Nature of Exam Weightage Duration Date of Exam Note: 1. 2. 3. 4.

: QMJ ZG621 : SUPPLY CHAIN MANAGEMENT : Open Book : 60% : 3 Hours : 05/04/2009 (AN)

No. of Pages =2 No. of Questions = 5

Please follow all the Instructions to Candidates given on the cover page of the answer book. All parts of a question should be answered consecutively. Each answer should start from a fresh page. Mobile phones and computers of any kind should not be used inside the examination hall. Use of any unfair means will result in severe disciplinary action.

Q.1 (a).

Harley Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Each engine costs $500, and Harley incurs a holding cost of 20 percent per year. How many engines should Harley load onto each truck? What is the cycle inventory of the engines at Harley? [7] As a part of its (from Q1 (a)) initiative to implement just-in-time (JIT) manufacturing at the motorcycle assembly plant, Harley has reduced the number of engines loaded on each truck to 100. If each truck trip still costs $1,000, how does this decision impact annual inventory costs at Harley? What should the cost of each truck be if a load of 100 engines is to be optimal for Harley? [8]

Q.1 (b).


The Orange company has introduced a new music device called the J-Pod. The J-Pod is sold through Good Buy, a major electronics retailer. Good Buy has estimated that demand for J-Pod will depend on final retail price p according to the demand curve Demand D = 2,000,000 – 2,000p The production cost of the Orange is $100 per J-Pod. (a) What wholesale price should Orange charge for the...
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