Supply Chain Dynamics SC3x

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Week 10: Exogenous Factors
Week 10 Graded Assignment
Graded Assignment 1
Happy Toys Inc.
In October 2010, HappyToys Inc. announced a voluntary worldwide recall of 95 toys of its popular line: SnugBug. The recall included various popular characters from kid’s TV shows and movies. The recall applied to over a million toys sold since March of the same year. The recall was initiated as a result of the use of excessive lead paint in certain parts of the toys. Over the next couple of months, Happy Toys Inc. announced at least ten more recalls for toys with lead paint as well as small metal parts that came loose from some of the toys. All of the toys had been manufactured in China and following the identification of the source of issues, the owner of the supplier factory disappeared with no trace.
As a result of the recall, HappyToys Inc. and their toy recall was all over social media and news outlets. Mass hysteria from parents and consumers in general about product safety reached a fever pitch. Other recalls from products made in China had been issued that same year including pet food, cough syrup, and milk. HappyToys Inc.'s image and consumer trust took a severe dip, along with trustability for products labeled “Made in China”. Not only were they under pressure from their critics, the Consumer Product Safety Commission of the U.S. EPA has strict regulation about toy safety and HappyToys Inc. was under fire for non-compliance.
A major push for products made locally followed. But it was shortsighted to blame China entirely for the recall issue, as some of the recalls has been a design issue that was based squarely in HappyToys Inc. operations and had nothing to do with the supplier. Design flaws included metal parts that came loose from baby toys.
HappyToys Inc.'s supply chain was segmented into two types of products: primary products that were core to the brand (Holly Dolls), and non-primary products with short release times (seasonal and temporary characters). They produced primary products in factories they owned and outsourced non-primary. Primary products had experienced a lower rate of recall. Happy Toys Inc. was aggressive with their inspection and suppliers were monitored for issues such as lead based paint. Toys were taken off the production line intermittently throughout production to verify. However, it was clear that toys coming from a certain plant had missed thorough inspection.
Part of the problem in the toy production industry was subcontracting. A company who was producing a toy might subcontract for specialized painting, and the paint the subcontractor used might not be vetted. Another part was the constant pressure for ever cheaper toys, retailers like BridgeMart and others were constantly pressuring their suppliers (like HappyToys) for lower costs. HappyToys Inc. did not want to lose one of their largest buyers, BridgeMart, so they responded by leaning heavily on their own suppliers to produce at lower costs and faster rates.
HappyToys Inc. is at a fork in the road with their supply chain. While they are a global brand with millions of toys sold every year, they are at risk for losing many of their customers and market share.

Part 4
HappyToys Inc. is not sure how to assess what is core to their business and align it with what stakeholders want, following this scenario. Which practice(s) might they do to get a sense of this?
Week 9: Risk Management & Resilience
Week 9 Graded Assignment
Lucky 7 Trucking is a small trucking company that employs 7 trucks, and 7 drivers, to move freight across the USA for their customers. Since the company’s founding in 2013, Lucky 7 has never had a major crash. But, management is nevertheless very concerned. Management believes that there is a high probability that a crash will occur at some point in the future. They also believe that the consequences of a major truck crash for their company will be severe. According to a recent study, a large truck crash in the United States costs approximately $3.6mn [1]. Notably, this estimate does not include the damage that a major crash would do to Lucky 7’s nascent brand image; or the costs that would result from the loss of business that Lucky 7 would incur if one of its 7 drivers, and/or one of its 7 trucks, had to be decommissioned, suspended, hospitalized – or worse. Currently, Lucky 7 is operating at almost full utilization. Each driver, and each truck, are on the road 7 days per week. The terrified founders of Lucky 7 Trucking have hired you as their risk consultant.
You know that driver fatigue is a major contributor to large truck crashes in the US – that is, truck drivers who drive for too many hours with too little sleep [1]. Rules state that drivers can work for no more than 14 continuous hours without taking a break to rest. However, this rule is difficult to enforce. Lucky 7’s drivers keep paper-based logs of their working hours, but management usually only sees these logs after a driver has safely returned home from a completed delivery.
Answer the following questions to help your client, Lucky 7 Trucking, understand their situation.

Part 5
How might Lucky 7 employ redundancy in order to mitigate the consequences to their company of a major truck crash?
Week 8: Global Supply Chain Management II
Week 8 Graded Assignment
Graded Assignment 2
Part 1a
Assume a wholly-owned subsidiary in country A (tax rate = 31%) makes 500 units of a product for $200 each and sells them to the parent company in country B (tax rate = 22%) for 350 USD each. The parent then sells them for 470 USD each in country B. The company has no other costs or sources of revenue. Given this information, answer the following questions.
Part 3
Assume that the parent company repatriates all the profits from country A to B and there is a Participation Exemption allowed by Country B that provides that only 50% of the repatriated income to be subject to income tax in Country B. Now what is the total tax bill paid in Country B from both income earned in B and income repatriated to B from A?
Enter your answer rounded to the closest dollar.
Week 7: Global Supply Chain Management I
Week 7 Graded Assignment 2
HomeShop is a designer and manufacturer of Augmented Reality and Virtual Reality kits (AR/VR) for promoting apparel home-shopping based in Varna, Bulgaria. These AR/VR kits utilize a combination of hardware and software that can take shoppers sitting in their homes on a virtual tour of their favorite branded stores anywhere in their country. Based on their virtual visits, a shopper can purchase apparel of their liking through e-commerce platforms such as Amazon. Since the outbreak of COVID-19, the recent surge in interest in home shopping had led to a drastic increase in demand for these AR/VR kits.
HomeShop manufactures most of the components of AR/VR kit in-house but buys headsets from a distributor, Digitone_Co. who purchases laser sensors from a Chinese company, HardAV. Digitone_Co. picks up the lasers from a HardAV factory in China and then transports them over land to the nearest port of export. HardAV charges 5435 Chinese Yuan per unit (1EURO (€) = 7.5 Chinese Yuan) for lasers and the transportation cost from HardAV Factory to the port of export is 9 EURO(€) per unit. From there, the shipment is transported via ocean to the port of import in Bulgaria. The freight charges are € 43 per unit and the marine insurance cost is € 7 per unit. At the port of import, Bulgaria custom charges 10% duty on imported items. The value added tax on these sensors is 5%.
What is the FOB price per unit in EUROs (€)?
Week 4: Process Analysis and Applications in Practice
Week 4 Graded Assignment 2
Mad4Coffee is a well-established specialty coffee roaster operating in the state of Massachusetts. They import green coffee from Latin America, which is roasted and packaged at their factory in Massachusetts. Mad4Coffee really cares about the quality of its products, much like its competitors in the specialty coffee industry, however it also cares deeply about sustainability. The company is committed to sourcing only organic, shade-grown coffee.
Fifty years ago, Mad4Coffee started with only one product line: CutieBeans, coffee beans packed in elaborately decorated tin cans. To start, CutieBeans was sold mainly at gourmet stores. As the years passed and the demand for specialty coffee grew, so did their product portfolio. They launched BigCoffee, big coffee bags for coffee shops; and EasyPods, coffee pods sold in supermarkets and department stores for home use. Their latest release is CaffeineBomb, a coffee-based ready-to-drink beverage. Mad4Coffee is investing heavily in advertising CaffeineBomb as the new energizing drink at bars and night clubs.
Given changing consumer trends for coffee, Mad4Coffee's executive leadership team gathered to discuss long-term trends in demand for coffee beans, ground coffee and prepared drinks, and how to prepare their supply chains to meet future trends.
Part 2
Mad4Coffee would like to classify its product lines using the growth-share matrix business categories. The table below provides some more information about the current product portfolio of Mad4Coffee:
Week 3: Supply Chain Strategy & Alignment
Week 3 Graded Assignment 2
CommunCo is a worldwide leader in the communication electronics industry and provides a wide range of technology solutions for many industries including major manufacturing, technology, and retail companies. CommunCo solutions has regular demand and product volume with businesses with very minor requirements such as video-conferencing or wi-fi devices. But it also services more complex clients such as big corporations requiring call-centers, cloud-services, or customized data servers. They have recently implemented a supply strategy called Lean-CommunCo, focused on reducing the number of suppliers. These suppliers are qualified but most of them are new suppliers for CommunCo.
Part 1
Using Lee’s matched strategies matrix, what supply chain strategies might CommunCo use for the customized data servers?
Week 2: Introduction to System Dynamics
Week 2 Graded Assignment 1
SCUDS (Sudden Completely Unexpected Death Syndrome) is a new disease sweeping across the land of Oz. The first report of the disease has just been reported in Munchkin county. While the disease is very contagious, some residents in Oz have a natural immunity. After forcing all Munchkins to take a blood test, the county doctor has determined that no Munchkins have this immunity. While the disease can be detected early, it may take years or decades to actually affect an individual.
The county commissioner is looking at taking steps to mitigate the spread of SCUDS in the Munchkin population. He has been working with some system dynamics experts to create the following model.
SCUDS Model 
Here are some notes that the team made:
Contact frequency is the number of times that a Munchkin makes a contact with other Munchkins. Since Munchkins are very social, this is assumed to be a constant 30 per day.
The total population of Munchkin County is 350 Munchkins.
Only one Munchkin currently has SCUDS.
All munchkins are susceptible to the disease. Once they get it, they are no longer susceptible to the disease because they are actually infected.
Out of 1000 contacts between infected and uninfected Munchkins, 3 new Munchkins are expected to contract SCUDS.
Part 3
The system dynamics team now has data from the Emerald city that can help them to validate their model.
Here is what the team knows:
All 650 people in the Emerald city have already contracted SCUDS.
After adjusting the model for the larger population, it took much longer for all 650 people to contract the disease than the model predicted.
What factors may have caused this to happen?
Week 1: Introduction to Supply Chain Dynamics
Week 1 Graded Assignment 1
Part 2
Which of the following statements are true concerning supply chain systems?

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For competitive advantage, supply chains need to be dynamic and responsive to changing technologies and market conditions. A key components of a dynamic supply chain is the bullwhip effect which is a distribution channel phenomenon in which demand forecasts yield supply chain inefficiencies.
By enrolling in this course, you will learn how to tackle the bullwhip effect and also how to avoid risks associated with the dynamic supply chain through approaches such as dynamic discounting and supply chain finance. Dynamic discounting is a solution that gives suppliers flexibility in taking payments earlier than the due/payment date, in exchange for a small discount. We help you prepare supply chain dynamics ppt to help you better understand concepts.

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