Mars, the manufacturer of confectionery and pet food, has been on a multi-year journey towards supplier relationship management. In 2015 the company evaluated its existing performance and process and designed a ‘to be’ future design and suite of tools and practices to get there. These were piloted with six global suppliers in 2016 in advance of a broader rollout in 2017. The key first step taken by the company was to conduct a survey in order to capture ‘the voice of the supplier’. This proved a very worthwhile exercise, providing the company with a large quantity of feedback from its suppliers. It also gave the company a number of clear pointers ‘on how it could change for the better its existing interaction with its most important suppliers, thus creating more value for Mars without necessarily incurring higher costs. Feedback from the suppliers included statements such as: ‘Interaction with Mars about the business is limited, especially compared to other companies’; ‘Mars is surprisingly quiet about its growth plans’; ‘We did at least three presentations but none of the actions have gone forward. We did not receive any feedback on our unsuccessful proposals’. These statements clearly reveal a desire among suppliers to know more so they can do more for Mars. They represent a clear call for sharing, transparency and open channels of communication, something of a departure from the traditional procurement practices of negotiating and closed tender processes, and so requiring a reset of the toolkit. Mars has learned some valuable lessons in the course of this project: . It takes time to build relationships and realize value (in particular because the supplier may not be used to this type of collaborative behavior from procurement. . It takes resources. . Procurement foundations must be strong. . A buying firm typically has more work to do to prepare for proper SRM than the suppliers do. . SRM is a business programme, not a procurement to-do, because if procurement were doing this independently of the business great improvements might be identified but not adopted by the business.
> Solve the linear programming model formulation in Problem 18 for the fast food restaurant using computer. a. Identify and explain the shadow prices for each of the resource constraints. b. Which of the resource constraints is most profitable? c. Identify
> Formulate a linear programming model for Problem 37 in Chapter 1 and solve using the computer. How does this solution differ from the solution to Problem 33 in Chapter 1?
> Solve the linear programming model formulation in Problem 18 for the fast food restaurant graphically. a. How many extra breads and eggs are leftover at the optimal solution? Is there any idle labor time? b. What would the solution be if the profit for a
> The manager of a fast food restaurant at the Heathrow Airport wants to determine how many sandwiches and bread-omelettes to prepare for customers. These foods require the following ingredients. The restaurant has 25 hours of labor available per day. The
> Solve the linear programming model formulation in Problem 15 for the Patel brothers using the computer. a. If the authorities allow the brothers to plant a minimum of 20 acres with onion, should they plant only 20 acres or more? Explain. b. The brothers
> Solve the linear programming model formulation in Problem 15 for the Patel brothers graphically. a. How many acres of land was cultivated at the optimal solution? Did they use all the land? b. If they plant only onions, what would be their maximum profit
> Patel brothers have 50 acres of farmland on the banks of River Ganges. They plan to grow tomatoes and onions. Since onions requires less water, the irrigation authority wants the brothers to cultivate at least 25 acres of land with onions. Brothers work
> Solve the linear programming model formulated in Problem 12 for United Aluminum Company by using the computer. a. Identify and explain the shadow prices for each of the aluminum grade contract requirements. b. Identify the sensitivity ranges for the obje
> The Tech Student Government Association (SGA) has several campus projects it undertakes each year, and its primary source of funding to support these projects is a T-shirt sale in the fall for what is known as the “orange effect” football game (with oran
> Solve the linear programming model formulated in Problem 12 for United Aluminum Company graphically. a. How much extra (i.e., surplus) high-, medium-, and low-grade aluminum does the company produce at the optimal solution? b. What would be the effect on
> United Aluminum Company of Cincinnati produces three grades (high, medium, and low) of aluminum at two mills. Each mill has a different production capacity (in tons per day) for each grade, as follows: The company has contracted with a manufacturing firm
> Solve the linear programming model formulation in Problem 9 for the fitter by using the computer. a. If the fitter can obtain additional hours either to cutter or grinder (but not both), which should he select? How much? Explain your answer. b. Identify
> Solve Problem 9 graphically. a. How many hours of the cutter’s time are used? Does it have any leftover time? b. If the fitter is able to reduce the cost of product A from €8 to €6 and product B from €12 to €9, what will be the impact of cost reduction o
> Given the following QM for Windows computer solution of a linear programming model, graph the problem and identify the solution point, including variable values and slack, from the computer output:
> Solve the following linear programming model graphically: maximize Z = 3x1 + 6x2 subject to 3x1 + 2x2 … 18 x1 + x2 Ú 5 x1 … 4 x1, x2 Ú 0
> In Problem 7, how much flour and sugar will be left unused if the optimal numbers of cakes and Danish are baked?
> The Crumb and Custard Bakery makes coffee cakes and Danish pastries in large pans. The main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar available, and the demand for coffee cakes is 5. Five pounds of flour and 2 p
> Refer to Problem 5. a. How much iron and labor will be unused if the optimal number of windows and doors are produced? b. Explain the effect on the optimal solution of changing the profit on a window from € 500 to € 300.
> A metal shop fabricates windows and doors to construction companies. To fabricate these, the shop uses iron, glass, and labor. The company has 80 units of standard size iron, 60 square feet of glass, and unlimited hours of labor but the shop has to use 5
> A group of developers is opening a health club near a new housing development. The health club— which will have exercise and workout equipment, basketball courts, swimming pools, an indoor walking/running track, and tennis courts—is one of the amenities
> Angela and Bob Ray keep a large garden in which they grow cabbage, tomatoes, and onions to make two kinds of relish—chow-chow and tomato. The chow-chow is made primarily of cabbage, whereas the tomato relish has more tomatoes than does the chow-chow. Bot
> In Problem 40: a. Suppose Shirtstop decided it wanted to minimize the defective shirts while keeping costs below $2,000. Reformulate the problem with these changes and solve graphically. b. How many fewer defective items were achieved with the model in (
> Shirtstop makes T-shirts with logos and sells them in its chain of retail stores. It contracts with two different plants—one in Puerto Rico and one in The Bahamas. The shirts from the plant in Puerto Rico cost $0.46 apiece, and 9% of them are defective a
> The Kalo Fertilizer Company makes a fertilizer using two chemicals that provide nitrogen, phosphate, and potassium. A pound of ingredient 1 contributes 10 ounces of nitrogen and 6 ounces of phosphate, whereas a pound of ingredient 2 contributes 2 ounces
> In Problem 38, if Kroeger discounts the price of its own brand of peas, the store will sell at least 1.5 times as much of the national brands as its own brand, but its profit margin on its own brand will be reduced to $0.23 per can. What effect will the
> Kroeger supermarket sells its own brand of canned peas as well as several national brands. The store makes a profit of $0.28 per can for its own peas and a profit of $0.19 for any of the national brands. The store has 6 square feet of shelf space availab
> In Problem 36, a. How many hours are left unused at the optimal solution? b. What would be the effect on the optimal solution of increasing the available cloth from 90 to 100 meters?
> On the UAE national day, children wear new clothes with the national flag embroidered on them. A tailor has three weeks before the national day and plans to work for up to 40 hours per week for the next three weeks. He earns a revenue of AED100 for stitc
> Assume that the objective function in Problem 34 has been changed from Z = 30x1 + 70x2 to Z = 90x1 + 70x2. Determine the slope of each objective function, and discuss what effect these slopes have on the optimal solution.
> A manufacturing firm produces two products. Each product must undergo an assembly process and a finishing process. It is then transferred to the warehouse, which has space for only a limited number of items. The firm has 80 hours available for assembly a
> The Youth Cricket Club of a small city has a team of 20 members. The club provides professional coaching to its members. The club needs a budget of $75,000 every year to support its team and to pay the coaches’ salaries. To generate this amount, the club
> A canning company produces two sizes of cans—regular and large. The cans are produced in 10,000-can lots. The cans are processed through a stamping operation and a coating operation. The company has 30 days available for both stamping and coating. A lot
> Copperfield Mining Company owns two mines, each of which produces three grades of ore— high, medium, and low. The company has a contract to supply a smelting company with at least 12 tons of high-grade ore, 8 tons of medium-grade ore, and 24 tons of low-
> In Problem 30, how much additional profit would the restaurant realize each week if it increased its freezer capacity to accommodate 20 extra gallons total of ice cream and yogurt?
> Gillian’s Restaurant has an ice-cream counter where it sells two main products, ice cream and frozen yogurt, each in a variety of flavors. The restaurant makes one order for ice cream and yogurt each week, and the store has enough freezer space for 115 g
> What would be the effect on the optimal solution in Problem 2 if the cost of rice increased from $0.03 per ounce to $0.06 per ounce?
> Solve the following linear programming model graphically:
> Solve the following linear programming model graphically:
> Solve the following linear programming model graphically: minimize Z = 5x1 + x2 subject to 3x1 + 4x2 = 24 x1 … 6 x1 + 3x2 … 12 x1, x2 Ú 0
> In Problem 25, what would be the effect on the solution if the constraint x2 ≤ 7 were changed to x2 ≥7?
> Solve the following linear programming model graphically: minimize Z = 3x1 + 6x2 subject to 3x1 + 2x2 … 18 x1 + x2 Ú 5 x1 … 4 x2 … 7 x2∙x1 … 7/8 x1, x2 Ú 0
> The College of Business at Tech is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, course development, and staff recruitment and development is $350,000. The college plans to charge tuition of $18,0
> Pastureland Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of production is $4,000, and the variable cost per pound of cheese is $0.21. The cheese sells for $0.75 per pound; however, the dairy is considering raising the
> Tilda Limited is a food manufacturer and major supplier of pure basmati rice to the UK grocery, wholesale and food service sectors. The rice is sourced from the foothills of the Himalayas and undergoes stringent quality and DNA verification tests across
> CleanCo is a manufacturer of cleaning products that serves the European grocery retailing market. CleanCo currently segments its customers on the value of customer accounts. The primary division is between national accounts, for which 10 accounts constit
> At the time Tom Cross took over as managing director at Powerdrive Motors in South Africa, the company was an established manufacturer of small electric motors with a strong reputation for product reliability and technical leadership. On the downside, it
> Electrolux is a manufacturer of domestic appliances such as dishwashers and vacuum cleaners. The company has developed a programme to boost innovation, based on joint innovation efforts with suppliers and originating from the simple realization that supp
> Unilever has also become very focused on seeking upstream collaboration opportunities to support its ambition to double the size of the company whilst reducing its environmental impact. For procurement and supply chain, this target meant it needed to inv
> Haiti was hit by a disastrous earthquake of 7.0 magnitude on 12 January 2010. It caused more than 120,000 deaths, more than 300,000 injuries and more than 1.5 million people to become homeless. The country of Haiti (established in 1804) has always experi
> Auto Roadside Recovery (ARR) is a medium sized company operating around Madrid. ARR provides a vehicle breakdown service offering roadside repair and recovery of the vehicle. Frequently used parts include starters and alternators, which are sourced from
> Eaton Corporation is a $16 billion diversified power management and technology manufacturer of over 400,000 products as diverse as pumps and valves, cylinders, connectors, hoses and motors. The company has a programme under way to move from 700+ to some
> Boeing’s challenges with the market introduction of the Dreamliner plane are already touched upon in Chapter 4. After its introduction, the Dreamliner ended up grounded due to battery issues. Boeing was in need of changing its battery design and technolo
> With whom was about €1 billion. The procurement team analysed this supply base, and was helped in this task because there was one single list of suppliers – which is not at all always the case! In more internationally operating companies there are often
> SKF is a manufacturing company based in Sweden that produces a wide range of industrial parts and equipment. The company has undergone a multi-year effort to centre its sourcing more on TCO. In the company’s experience, TCO has an impact on the evaluatio
> Cofely, in the Netherlands, is an installation and technical services company with annual revenues of €1.3 billion and some 7,000 staff. The firm is organised into 14 distinct businesses with their own profit and loss accounts. These businesses serve eit
> Johnson & Johnson (J&J) is a $65+ billion health care company that employs more than 129,000 employees and 10,000+ suppliers around the world. The company’s procurement leadership has defined an ambition agenda of building blocks for procurement excellen
> Automotive assemblers and their inbound supply chains have developed many solutions to orchestrate the manufacturing and delivery of the thousands of parts that go to make up a vehicle. The many potential inbound logistics solutions are summarized in Fig
> Marine Transport International (MTI), together with Agility Science (AS), developed the aptly named Container Streams distributed ledger technology, based on open source with an MIT permission license. According to Jody Cleworth, CEO of MTI: The creation
> In 2003 Walmart began a programme implementing RFID, which turned out to be far more challenging than expected and reveals the many issue in the retail sector. Problems began shortly after the announcement in June 2003 of the initiative to tag cases and
> Global ‘vertical’ supply strategies in the apparel industry aim to emulate retailers such as Zara, which sources everything from set manufacturing plants that are situated within the same geographic region as most of its retail outlets. Setting up a simi
> In January 2007 Marks & Spencer (M&S) launched ‘Plan A’, its five-year strategy to improve the retailer’s social and environmental impact. Plan A set out 100 commitments – goals to be achieved by 2012 – covering climate change, raw materials, waste, heal
> The Bose Corporation, a USA-based manufacturer of hi-fi equipment (as shown in Figure 8.9) developed the JIT2 concept in the early 1990s. Bose recognized that, if the traditional buyer–supplier relationships were to be made more effecti
> O2 is Telefonica’s UK commercial brand and provides the communication network and supply mobile phone devices through its network of retail stores. The supply chain team have established a high degree of collaboration with their suppliers (and internal c
> CPFR pilots have been a popular diversion in the UK grocery sector. Often, they show – as in this case – that considerable opportunities for improvement exist, but that the problems of scaling up the pilot are too grea
> Travis Perkins plc (TP) is the largest UK merchant supplier of building material to selfbuilders and the construction industry. It has doubled in size in recent years, in part through acquisitions, and now owns 25 businesses, including Wickes and Tool st
> Located on the coast of east Tianjin, Binhai New Area (BNA) is at the intersection of the Bohai Economic Belt and Jing-Jin-Ji Metropolitan Circle and Bohai Economic Sphere. This is also the starting point of the Eurasian Continental Bridge and an importa
> The National Association of Italian Footwear Manufacturers (Assocalzaturifici – http:// www.assocalzaturifici.it) explains, The success of the footwear sector in Italy is linked to an enterprising spirit and to the structure of the sect
> A major supplier of digital telecommunications systems, which we shall call ‘Cymru’, had established a successful manufacturing plant in Wales. The European region had been restructured into five customer-facing divisi
> Many basic improvements were identified when the supply chain executive team from Alfa Laval examined the alignment throughout the company, as illustrated in Figure 8.4, Four areas of alignment improvement initiatives were highlighted: interactions with
> DW Windsor is a service-led manufacturer of exterior lighting that delivers road and street lighting products and design services to clients globally from their world-class production facility. The business was established in the late 1970â€&#
> Li & Fung is a Hong Kong based company that was established in the early 1900s as a mediator between Chinese speaking sellers and English speaking buyers. A century later it is one of the world’s leading textile exporters (the large
> Consumer products giant P&G has its share of supply chain scope. In 2012 the company realised $84 billion in sales and 25 of its brands generated $1 billion or more revenue. In order to realise this revenue, the company procures inputs worth over $51 bil
> Micro Compact Car AG (MCC), a wholly owned subsidiary of Daimler-Benz (formerly a joint venture of Daimler-Benz and Swatch), is the company behind the Smart Car. The Smart City Coupé is a two-seater car measuring 2.5 metres in length, which
> Bacalao is fish that has been salted and dried, traditionally in the open air on rocks; today it is done in a drier. It has been produced in Norway since about 1640, can be kept refrigerated for several years, and is said to improve over time. It has dev
> Almost a fifth of the UK’s wheat crop goes into poultry feed and, although feed supply chains are often short and integrated, there are opportunities to improve the performance, even in these commodity chains. This was found to be the c
> The Institute of Grocery Distribution (IGD) supports the development and progress of ECR initiatives in the UK and across Europe. IGD aims to fulfil consumer wishes better, faster and at less cost with forums such as reducing wasted miles (2018). The wor
> A car assembly plant is built around a simple sequence of tasks that starts in the press shop and ends as a car rolls off the final assembly line. Figure 6.13 shows these basic tasks in summary form: Figure 6.13 Basic tasks in a car assembly plant Whils
> This case study, although simplified, has been derived from a real world industrial situation. The Cranfield Currency Company (CCC) manufactures various types of cash machines under three product families, which are each produced in three variants: . The
> Victoria SA makes ‘fantastically good cakes’ from basic ingredients such as flour, eggs and butter. Demand for Victoria sponge cakes comes from two sources. Some big retailers place their order with the firm two days i
> The vast majority of warehouses in the developed world still use the pick-by-paper approach. But any paper-based approach is slow and error prone. Furthermore, picking work is often undertaken by temporary workers who usually require cost-intensive train
> As a global business serving the world’s leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline products and systems, for use in everything from the most sophisticated premi
> The managing director of Wiltshire Distribution Transformers (WDT) had concentrated on a new generation of simplified, modular designs that used proven US technology. He had energetically exploited the market advantages this had given. WDT now has two ma
> A problem that is all too familiar to suppliers in the automotive industry is that of schedule variability. A vehicle assembler issues delivery schedules to specify how many parts of each type are required each day for the following month. And each day a
> Electro-Coatings Ltd electroplates parts for the automotive industry, for example, the marque badges fitted to the front of prestige cars. Customers were becoming increasingly demanding, resulting in Electro-Coatings undertaking a review of its internal
> Nearly 75 per cent of footballs were produced in Pakistan, mostly in the Sialkot district, Pakistan’s ‘export capital’ close to the border with India. However, an International Labour Organisation (ILO) study in 2002 showed that more than 7,000 children
> In 2005, Cisco Systems dealt with US$500 million of returned products and parts through a cost centre whose annual operating cost was just US$8 million. All returns were treated as defective product and service returns with the rationale being that all r
> Bloomberg is an information services provider that offers real-time financial data on the companies it monitors. This enables businesses to risk monitor these companies. A new development that Bloomberg is developing (internally first) is to extend the r
> For the last several years, convenience store chains across the country have launched fresh channel initiatives, which have included adding salads, freshly made sandwiches and other fresh grab-and-go products to its offerings. Penske Logistics was asked
> Smiths Aerospace is a largely UK-based supplier to both military and civilian aircraft and engine manufacturers, and is owned by General Electric of the USA. Several years ago, Smiths launched an initiative to outsource production of parts from UK suppli
> Nike has a central customer service centre (distribution centre) located at Laakdal in Belgium. The centre is 200,000 square meters in size and serves 45,000 customers in EMEA with footwear, apparel and equipment. The centre receives products from suppli
> The subject of air miles appears regularly in media headlines today. Here are two contrasting views of what is happening. Supermarkets and food producers are taking their products on huge journeys, despite pledging to cut their carbon emissions. Home-gro
> Rio Tinto is a globally operating mining company that has created central buying centres, including one in Singapore where dedicated teams buy in the supply market against forecasted demand from businesses inside Rio Tinto. This is different from traditi
> SC Johnson, the consumer products company, has gone through a major development in its Asian procurement operations, in an effort to incorporate the region into the global governance. Whilst, in the past, Asia was a more removed decentralized outpost wit
> Once the problems of introducing ‘just-in-time’ production systems (internal logistics) had been solved at the Xerox plant making photocopiers at Venray in Holland, attention shifted towards the finished product invent
> Walmart has set three ambitious goals for sustainability: 1. To be supplied by 100 per cent renewable energy. 2. To create zero waste. 3. To sell products that sustain the environment. In moving towards these goals, several key projects have been rolled
> Akzo, the Dutch-based chemicals and coatings company, owner of ICI and many other brands, has appointed a CSR officer to drive and coordinate CSR efforts across the company. To drive ownership, consideration and focus broadly across the company and in al
> When Airbus introduced its Airbus A380 double decker super plane in January 2005 to the press and the world it was an impressive show that brought out government leaders and made headlines all over the world. A little while later, however, delays to the
> The supply chain manager of OTIF plc is considering investment into a computerized routing and scheduling system for the distribution operation. The initial capital expenditure will be £25,000 and it is anticipated to have a useful life of f
> Komplex GmbH has four production lines, each of which operates for 8,000 hours a year. Each line makes a number of products, which are based on size and colour. Therefore, many changeovers are required, each incurring set-up and maintenance costs. Tradit
> Glup SA supplies a range of household soaps to supermarkets in northern Europe. There are 12 stock-keeping units (SKUs) in the range. The logistics manager has determined that an investment of €0.5 million on improved material handling equipment would co
