11 Aug Using your own words, define risk pooling and the advantages and disadvantages of centralized warehousing.

QUESTION #1 – [4 POINTS] – Using your own words, define risk pooling and the advantages and disadvantages of centralized warehousing.

QUESTION #2 – [6 POINTS]

a) Why CRM is important in managing supply chains?

b) What do firms with good CRM programs do? Present examples aside from the ones mentioned in our textbook.

QUESTION #3 – [4 POINTS] Using your own words, describe why the determination of customer lifetime value is important.

QUESTION #4 – [5 POINTS] – Assume that Wal-Mart already has one DC facility in the Tampa area. What are the factors that could influence Wal-Mart’s decision to add a new DC facility in the Tampa area instead of expanding the current one?

QUESTION #5 – [4 POINTS] – How do functional silos prevent supply chain integration within an organization?

QUESTION #6 – [3 POINTS] – Why is lack of trust between trading partners an obstacle to supply chain management?

QUESTION #7 – [8 POINTS] – Use the Weighted-Factor Rating Model to determine where Wal-Mart should build its first Mega Distribution Center in South America.

The table below bring the factors identified as critical to making a location decision among 3 countries: Brazil, Argentina and Uruguay. A group of managers has determined the factors, weights and scores for you to perform your analysis:

• In the scenario described above, show your calculations and provide your recommendation for the country where Wal-Mart should install its first Mega DC in South America.
• Wal-Mart would like your recommendation for which country to install their first Mega DC in South America if they decide to:
  • Disregard the labor cost factor, AND
  • Disregard the quality-of-life factor, AND
  • Assume that each of the other three factors have a weight of 1/3

If there is a tie for the first place, how would you go about recommending the chosen location and why?

QUESTION #8 – [6 POINTS] – Use the Break-Even Model to determine where Wal-Mart should build its first Milk processing facility in South America.

Wal-Mart has done its research and determined annual fixed and variable costs associated to their first Milk processing facility in South America, if installed in Brazil or Argentina, as described on the table below in US$:

• If the demand for the first year is 20,000 gallons of milk and the second year is increased to 25,000 gallons of milk, calculate the total cost of operation for each location in the first and in the second year.
• If Wal-Mart wants to install the facility in the location with the lowest total cost of operation in the first two years, where would you recommend the installation?