Management Coursework: Supply Chain Management Topic: Exam III or Final

PENN STATE UNIVERSITY ABINGTON
FALL 2020
Subject: Supply Chain Management Topic: Exam III or Final
Instructor: Dr. Joseph Jang
Question 1
1a.
The cost-benefit analysis reflects a systematic strategy utilized to review and evaluate the benefits and costs of activities in supply and logistics. Costs and benefits analysis is done to the investment's feasibility and to explore alternative investment choices of projects with similar outcomes. Its ultimate role validates the costs of each option and associated befits within a given scale and time framing. The costs and risks must be weighed and interact in a way that there is a positive outcome. For instance, it is crucial to analyze the cost of acquiring equipment or machinery against the expected outcomes. If the machinery can bring substantial improvement and productivity, then it justifies the need to acquire such equipment.
b.
The fuel prices have both direct and indirect influence in the logistical industry with its associated supply chain networks. More often, the fuel price fluctuation comes with dynamic influence in the logistical and supply industry. A sudden increase in fuel prices presents deleterious effects on freight and logistics management firms, including reduced profitability and shrinking markets. A rapid fall in prices of fuel causes increases profitability in the short term, but the markets appear to be marked by increasing completion and selling of goods at the lowest prices, which could lead to reduced profitability or cause losses in the long term. When fuel costs rise, the transport will need to raise logistical and transportation costs to cover the cost, leading to a subsequent increase in goods' prices. The fuel costs do not only affect the transport and logistical firms but also the shippers and consumers. In the context of price fluctuation in fuel, the whole logistical chain partners might need to choose transport options that are quite economical. Thus, the higher fuel costs denote equally higher prices passed on to final consumers. Due to the volatility and unpredictability of oil prices, logistical firms must re-strategize their operations to ensure profit sustainability. For example, transport or freight first may decide to keep more inventories to insulate themselves against a speculated spike in fuel prices.
Question 2
A more consistent supply of goods through a reliable transport system improves customer’s experience. The clients or consumers will enjoy a reliable supply of goods without any shortages. Besides, customers can access recently produced goods that have improved quality or upgraded features. However, the primary challenge experiences result from fluctuations in production factors and transport logistical costs, such as a change in fuel prices. These fluctuations result in the alteration of goods and services, such as an increase in cost of goods as a result of increased fuel prices. The higher inventory or greater availability of warehousing facilitates reliable and consistent access to goods by clients or consumers, which improves their experiences. This higher inventory insulates against price fluctuations. Thus, consumers are immune to price changes resulting in a change in productions and transport costs unless the freight company or holding firm decides to raise its price to match the prevailing market pricing of goods. However, these consumers may not enjoy access to recent upgrades for improved goods because higher inventories are kept to the last longer because it may not accommodate currently produced goods.
Question 3
3a.
Reliability in supply chain reliability refers to the extent to which a supply chain produces consistent performance. Increasing reliability implies reducing inventory and preparing for demand.
Reliability is crucial since it promotes productivity and cuts costs. It demands inventory to be delivered to customers on time. Trust is critical in the supply chain because it nurtures collaborative relationships anchored on honesty, openness, loyalty, and fairness. Trust is about virtual virtues that boost personal relationship based on mutual connection. Reliability centers on performance where goods are expected to be of top quality, reasonable price, and have no significant faults, while thrust primarily revolves around flexible terms that define relationships such as loyalty, honesty, and openness.
b.
Supply chain relationships arrangements can be primarily divided into two primary classes, i.e., external supply chain and internal supply. External supply entails external companies where the relationship with customers is achieved via marketing, sales, and procurement functionalities. The internal supply chain arrangement revolves around functions, departments, and business units within the same organization or system. Alternatively, supply chain relationships can be defined in terms of product, information, and financial flow. The product flow defines the mobility of goods from supplies to consumers. The information flow refers to the transmission of orders and updating the status of delivery regarding goods and services. Finally, the finances flow refers to all activities and process that are marked by credit terms, payment details such as timelines and schedules, and consignment and ownership arrangements.
Question 4
4a.
More often, optimal performances are expected in every sphere of human life. People would like to know how the prevailing circumstances are geared to meet the set objectives or defined organizational purpose. The progress can only be measured via performance appraisal or measurement system. The performance measurements entail evaluations that informed the trimming of deviations from set goals and to minimize risks, losses, and catastrophes or accidents that may occur at any level of supply chain management. First, the performance appraisal and measurement framework is marked by an objective of ensuring operational efficiency. Processes such as inventory, transport, logistics, production, and warehousing should be closely monitored to ensure efficiency, marked by a seamless flow of goods, fewer risks and minimized damages, more profitability, and reduced risk of losses. The second objective entails the optimization of transportation and logistics where shipping transportation of goods is done in a timely and strategic way that is aligned to manufacturers, retailers, and wholesalers' needs and interests, as well as favorable pricing of goods. Third, performance measurement is meant to improve quality where consumers are served well by delivering goods that match the value for money. It entails a collaborative framework where goods are delivered as per the customer's specific needs and meet the possible level of quality standards. Such standards also meet the regulatory and legal requirements. The incorporation of these objectives into the supply chain process optimizes efficiency and overall effectiveness
b.
Sarbanes-Oxley was a regulatory response to Enron and Worldcom financial scandals where there was increasing missing credibility in publicly traded companies' financial statements. Although Sarbanes-Oxley does not directly talk about supply and logistics, there is a ne...