Network and Systems Design

Weeks 3 & 4 Essay Questions
SCMG 201 – Principles of Supply Chain Management
Student Name
Chapter 3: Network and Systems Design (Questions 1 through 5)
Question 1: There are two views on how to manage processes across a supply chain. Research these two views both in your textbook and on the internet, and then describe each view, the primary focus, the advantages and disadvantages of both, and find an example of each on the internet. DO NOT copy or paraphrase your textbook; use your own words in defining these two views.
The two views for how to manage processes across a supply chain are Push and Pull. Push strategy focuses on forecasting demand and producing goods in advance to meet that predicted demand. The primary focus is on managing inventory and forecasting demand. The advantages of this strategy are that it can reduce the risk of stockouts and it can reduce the costs associated with carrying inventory. The disadvantages are that it can lead to overproduction and increased inventory carrying costs. An example of this strategy is the Just-In-Time (JIT) manufacturing system used by Toyota.
Pull strategy, on the other hand, focuses on producing goods only when there is present customer demand. The primary focus is on managing customer demand and reacting to it in real-time. The advantages of this strategy are that it can reduce lead times and it can reduce the costs associated with carrying inventory. The disadvantages are that it can lead to stockouts and increased lead times. An example of this strategy is the Kanban system used by Dell. Both strategies have their own advantages and disadvantages; it depends on the company's objectives, market conditions, and product characteristics.
Question 2: Assume a retail harbor can process 28,000 containers from cargo freight ships per day, under maximum conditions, using overtime hours. The harbor offloading facility was designed to process 22,000 containers per day under normal conditions. During the month of July, the harbor facility processed 19,000 containers per day. Calculate the harbor's ability to offload containers for both design and effective capacity. Show the formulas and the steps using Microsoft Office's "Insert ( Equation” function.
To calculate the harbor’s ability to offload containers for both design and effective capacity, we can use the following formulas:
Design capacity utilization: (Actual production / Design capacity) x 100
Effective capacity utilization: (Actual production / Normal capacity) x 100
The design capacity for the harbor offloading facility is 28,000 containers per day using overtime hours. The normal capacity is 22,000 containers per day. And the actual production for the month of July is 19,000 containers per day.
Design capacity utilization = (19,000 / 28,000) x 100 = 67.86%
Effective capacity utilization = (19,000 / 22,000) x 100 = 86.36%
These numbers tell us that the harbor offloading facility was operating at 67.86% of its design capacity and 86.36% of its normal capacity in July. This suggests that the harbor offloading facility was operating below its design capacity but above its normal capacity.
Question 3: Using the Word "Smart Art Function," create three separate illustrations for the evolution of supply chain integration for Material Flow where organizational functions are (a) independent, (b) integrated within the organization, and (c) integrated across the supply chain.
Question 4: Explain the "Modular Method" for Enterprise Resource Planning. Pay close attention to the advantages and disadvantages. Research online and find two expert resources for the modular method, summarize them and provide a hyperlink to the resource on modular enterprise research planning. Do not use a software company or any other "Ad" for a product. A good place to start is in Google using keywords found in this question.
The “Modular Method” for Enterprise Resource Planning (ERP) refers to the implementation of ERP systems in a phased, modular approach. Instead of implementing a comprehensive ERP system all at once, the modular method involves implementing individual modules or functions of the ERP system one at a time. This allows organizations to start with the most critical functions and gradually expand to other areas as needed.
The advantages of the modular method include the following:
Lower implementation costs: By implementing individual modules, organizations can lower costs by only paying for what they need.
Lower risk: Implementing a single module at a time reduces the risk of the entire implementation failing.
Greater flexibility: Organizations can choose which modules to implement and in what order, allowing them to tailor the system to their specific needs.
Disadvantages of the modular method include the following:
Increased complexity: With multiple modules and vendors, organizations may face integration and compatibility challenges.
Longer implementation time: Implementing the system in a phased approach can take longer than a comprehensive implementation.
Limited scalability: Some modules may not be able to scale up as the organization grows.
Two expert resources on the modular method for ERP are:
Modular ERP (M-ERP)- A Comprehensive Solution to Optimize Processes in Your Enterprise by Ami Dias. This article explains how modular ERP can reduce costs and risks while still providing the benefits of an ERP system. /blog/modular-erp-m-erp-a-comprehensive-solution-to-optimize-processes-in-your-enterprise/
Pros and Cons of Big Bang vs. Phased Rollout by Brandon Long. This article covers the advantages and disadvantages of the modular method and provides guidance on how to implement it. https://hrchitect.com/pros-and-cons-of-big-bang-versus-phased-rollout/
Question 5: Papi Toys can produce 500 toys in a single day under maximum conditions. However, it is designed to produce 400 units per day under normal conditions. In February, it produced 480 units per day. What was Papi Toys’ capacity utilization for both design and effective capacity? What do these numbers tell you? (Sanders, Nada R. Supply Chain Management, 2nd Edition. Wiley, 2017-09-18. VitalBook file)
According to the information provided, Papi Toys’ design capacity is 500 toys per day. Its normal capacity is 400 toys per day. In February, it produced 480 toys per day. To calculate capacity utilization, we can divide the actual production by the design or normal capacity. For design capacity utilization, we would divide 480 by 500, which would give us 0.96 or 96%.
For effective capacity utilization, we would divide 480 by 400, which would give us 1.2 or 120%. These numbers tell us that Papi Toys was operating at 96% of its design capacity and 120% of its normal capacity in February. This suggests that the company was operating close to its maximum capabilities but not exceed...