Sample Questions
Week 10 Graded Assignment:
Graded Assignment 1:Part 1
Fuente de Vida distributes bottled water in Puerto Principe. The company serves customers from the traditional (mom & pop stores, kiosks, small restaurants, etc.) and modern channel (convenience stores and supermarkets). Fuente de Vida uses different type of vehicles for their last mile operations.
Gladys Turner is in charge of last mile distribution at Fuente de Vida. She is analyzing to deploy electric cargo bikes (e-bikes) for their delivery operations in downtown. The characteristics and delivery conditions of downtown are such that e-bikes make a lot of sense. However, further analysis is required to assess their convenience from an economical point of view. For this purpose, Gladys would like to determine the total delivery cost that would be incurred using these new electric vehicles.
She divided downtown in 6 delivery territories or zones (A, B..., F). Each delivery zone is served by a single e-bike. A preliminary analysis showed that one cargo e-bike has enough capacity to fulfill the daily demand of any given zone. The table below shows the (X, Y) coordinates of the zone's centers and the area (in squared Km) of each zone. Additionally, it gives information about the number of customers and the number of bottles of water ordered that will be attended on an average day.
Notice that the distribution center (DC) is located at coordinates (0,0).
The accounting department has shared cost information from similar vehicles. Based on this information, Gladys Turner estimated the following:The cost to load each e-bike at the DC is $5.The cost to stop at a customer location is $0.3 per stop.The cost to unload and deliver a single bottle of water at a destination is $0.01.The cost for riding the e-bikes is $3.5 per Km.
What is the daily cost for loading the e-bikes with bottles of water at the DC?
Round your answer to the nearest integer.
Part 3
What is the daily cost for the linehaul riding of all the e-bikes from the DC to the center of each delivery zone and back (roundtrip linehaul cost)? Given the nearly perfect road network in downtown Puerto Principe, estimate the linehaul distance based on L1 norm (Manhattan distance). Assume a linehaul circuity factor ()of 1.0505
Round your answer to the nearest integer.
Graded Assignment 2
Heuristics are a commonly used to solve one-to-many transportation problems. Which of the following statements are true?
Select all correct answers
Week 9: Transportation I - Fundamentals of Freight TransportationWeek 9 Graded Assignment
Graded Assignment 1
You manage the shipping of item #UC859 from your supplier. The shipments for this item are delivered to the nearest port, and you have to transport them to the distribution center. You have two options, truck load (TL) and less than truck load (LTL).
Your company needs 5000 units of #UC859 per year and it is purchased at a price of $37 per unit. Each order costs $94. Your company uses a holding charge of 0.12, a cycle service level of 90% and 365 days per year for planning purposes.
The truck load (TL) option costs $1400 per load. It takes 4 days to deliver and each truck can carry up to 1200 items.
The less than truck (LTL) load option costs $2.2 per item. It takes 6 days to deliver.
You have three options,
OPTION A: to use the TL option and deliver full truck loads,
OPTION B: to use the TL option and deliver the economic order quantity
OPTION C: to use LTL option and deliver the economic order quantity.
For all following parts, consider transportation costs as an item cost unless otherwise specified. i.e., the total variable cost of #UC859 in the Full truckload is $1400/1200items + $37/item = $38.166666666666664/item.
(Option A) Full truckload
What is the sum of average pipeline and cycle inventory, ordering, and purchase costs for option A? Please provide your answers rounded to the closest dollar.
(Option B) Truckload with EOQ
What is the economic order quantity? Use the item cost without the transportation for this calculation. Please answer in whole numbers.
Week 8: Inventory III - Multi-period Inventory Models and Special CasesWeek 8 Graded Assignment 1
Part 1
Wooden Stuff is a furniture retailer operating in Cambridge, Boston. It mainly commercializes wooden desks in various sizes and shapes, and they have become very popular among MIT and Harvard students that need to furnish their rental apartments. To date, they have been managing their inventory with a simple Base Stock Policy: one item sold, one item ordered. This has worked well for a few years, but now they would like to switch to a more sophisticated policy.
Their flagship product is SKU 2053OJ, the Lifting Table, a table that can be adjusted to different heights to allow working in seated or standing position. This product accounts for one third of their sales and they would like to ensure a Cycle Service Level of 95% for this item.
You have been asked to analyze this item and propose an inventory management policy that fits the company’s needs. After doing a little bit of research, you have estimated that the annual holding charge for the Lifting Table is 25%. The demand planner has given you some interesting data: the demand for the Lifting Table follows a normal distribution with a mean of 2482 units per year and a standard deviation of 233 units.
The purchasing department informs you that the cost of each desk is $120 and the estimated ordering costs are $100 per order. It usually takes 10 days for the ordered items to arrive to the Wooden Stuff facilities. Every Lifting Table is sold at a price of $300. (Assume that there are 365 days in one year, and 30 days in a month.)
After analyzing all the available information and interviewing some key stakeholders in the company, you have decided to explore a Continuous Review Policy (s, Q).
What would be the replenishment order quantity Q?
What would be the reorder point s?
Week 7: Inventory II - Single Period Inventory ModelsWeek 7 Graded Assignment 1
Part 1
You are currently working as inventory manager for "4 Onions and 3 Carrots", a wholesaler in Delaware specialized in organic, locally produced vegetables. You maintain a record of the quantity, in pounds, of the demand of vegetables per day. You have determined that the demand approximate a normal distribution with a mean of 22.55 and a standard deviation 2.64. You buy the vegetables at $12 /lb and sell them at $51 /lb.
Currently, you order the mean demand. Any left over is thrown away at the end of the day. What is your expected units short and profit per day following this ordering strategy?
Expected units short
Provide your answer with three decimal places.
Expected profit
Week 4: Inventory I - Economic Order QuantityWeek 4 Graded Assignment 1
Part 1
You work at DeliWine, a US wine retailer. DeliWine sources one of their best selling wines, JudithRose, from a Spanish wine distributor. The cost of placing an order is $ 513 and the annual holding cost rate of DeliWine is 14 %. The lead time is 2 weeks and DeliWine only pays for the goods when the shipment arrives at their distribution center in Washington.
Assume that there are 48 weeks in a year.
The annual demand for JudithRose is very stable at 34954 bottles. The costs of JudithRose is $ 78 per bottle.
What is the optimal order quantity of JudithRose (in bottles)?
Round your answer up to the nearest integer.
Week 3: Forecasting II - Seasonality and Special CasesWeek 3 Graded Assignment 2
Part 1
The ski season started in Mount Sunapee! Aaron Ross's ski and snowboard rental shop is located in the ski lodge area and offers a large selection of current snowboards, shaped skis, and helmets for children, women, and men. Aaron's winter rental shop is open every day that Mount Sunapee is open for skiing. The rental store maintains a current inventory of quality rental equipment with all rental equipment inventory replaced on a normal rotation basis every three to four years.
Aaron Ross wants to understand better the factors that affect the demand for his ski and snowboard rental shop, so he can plan his capacity better. In particular, he wants to know how different factors, as the day of month, weekends, weather or school breaks affect their demand.
You will find data on number of rentals per day for December 2015 in this spreadsheet:
- For Excel: here
- For Libre Office: here
Based on this data, try to answer the following questions.
Let’s start creating a linear regression model of daily shaped ski rentals as a function of the day of month only. Are the regression coefficients statistically significant at p=0.01?
Select the best answer
Week 2: Forecasting I - Time Series Analysis and Exponential Smoothing
Week 2 Graded Assignment 2
Part 1
Pumper's is a manufacturer of high-end specialty equipment for submersible pumps. They produce parts that are sent to the original equipment manufacturers (OEMs) for manufacturing new pumps. They face a continuing challenge of trying to forecast demand for their products. The demand for one part in particular, UX-942, was highlighted as needing to be examined.
You can download the spreadsheet with the recent demand data for UX-942 in the linked file here.
It is always helpful to take summary statistics and, if possible, chart or plot the historical data to identify any demand patterns. The coefficient of variation (CV) gives us an indication of the volatility of the demand.
What is the coefficient of variation of the demand?
Hint: Use the STDEV.S function to calculate the standard deviation of this sample.
Give your answer with at least four decimals.
Week 1: Supply Chain Management - Core ConceptsWeek 1 Graded Assignment 1
Part 1
The Fast Fashion Group (FFG) is a fast fashion retailer company located in Spain and is one of the largest retailers in the country (their overall sales has grown by about 50% in five years). FFG sells clothes and accessories. The customer is at the heart of its business model, which strives to link customer demand to manufacturing, and manufacturing to distribution. Ruth Flores, the supply chain manager of the company, is concerned about fast moving products and high volatility. Since the number of SKUs has grown dramatically in the last year, she believes that the SKUs should be segmented and has asked you to run an ABC analysis on a sample of 60 SKUs (all of them are jeans).
In the linked file here, you will find the information you need regarding the unit cost, unit sales price, weekly sales volume, and weekly sales standard deviation for each SKU. Each SKU is represented by its ID, which is an alphanumeric code (e.g.: J08534). All currencies are in Euros.
Which SKU has the most volatile demand (highest coefficient of variation)? The coefficient of variation is defined as
. Just enter the SKU_ID.