Relationship management

1. Supplier relationship management is one of the supply chain macro processes in a firm. As an operations manager, how can supplier relationship management help in avoiding operations risks, such as disruptions and fraud, which are damaging to a firm’s reputation and profitability? Provide two real-world examples to support your answer.
2. Supply chain processes involve a constant flow of information across multiple supply chain stages. For a stage/firm in a supply chain, why does visualizing information play a significant role when an operations manager conducts the integrated operation processes in its business? Provide two real-world examples to support your answer.
3. The objective of supply chain management is to coordinate activities within the supply chain to maximize its competitive advantage and benefits to the ultimate consumer. Please suggest two operational performance evaluation metrics by considering other stages in a supply chain. Provide two real-world examples to support your answer.
4. XYZ Limited is a manufacturer of chocolate in Europe. The company aims to provide high-quality product and unique experience for consumers. Specifically, the company processes raw materials, i.e., coco beans, with special refining and fermenting procedures. The company sells the chocolate to both local and global markets each year. The operations system has recorded the past ten years’ sales history. Refer to Table 1 below.
   Table 1. The collected sales history data
   Year Sales in units
   1 800
   2 780
   3 730
   4 750
   5 720
   6 660
   7 620
   8 640
   9 590
   10 560
   11 ?
   12 ?
   Questions:
   (a) Please assist the operations manager to generate forecasts for the next two years (i.e., year 11 and year 12) using the linear regression method.
   (b) How can the operations manager use forecasting results to convince the chief operating officer to adjust their product strategy?
5. A group of consumers placed two orders at Snowboard Manufacturers in Victoria. To meet the consumers’ demand, the first 70 units of snowboard should be delivered to consumers at the beginning of week 5; another 50 units should be ready to shipment at the beginning of week 7. The product information is summarized in Table 2 below. The holding cost of each item is AU$2/week, and the setup cost is AU$50.
   Table 2. The product (snowboard) information
   Item Lead Time (weeks) On-hand Inventory Components
   Snowboard 1 0 K(2), L(3)
   L 2 30 K(3), H(1)
   K 1 20 -
   H 3 10 -

Questions:
(a) Develop and draw the product structure for the end product, i.e., snowboard.
(b) Develop the master production schedule for the item L.
(c) Develop material requirements plan for the item K using the lot-for-lot technique.
(d) Develop material requirements plan for the item K using the EOQ technique.
(e) Please assist the operations manager to identify a reasonable lot sizing technique based on your calculation results and explain your reasons.