Product Design

I’m stuck on a Supply Chain question and need an explanation.

Need help as soon as possible, will provide all information below! Please read the question before accepting! If you can do the work, I can extend it for five more hours.

a) You must use information and data provided in the problem statements below as the starting point for your

solutions. If you use information and data that is not in the problem statements (for example, if the numbers

you use in Problem 3 are different from the numbers that are provided in the problem statement), then we

would regard this as “irregular” behavior and give you “0” for the exam score, and request that you meet

with us to clarify the irregularity.

b) You are required to create and implement a project plan for completing the midterm. Keep track of your

progress and draw conclusions on how well you are able to follow your project plan. Include your project

plan as part of your midterm solution.

c) Create your own “template” for the structured Problem-Solving Process. Then use this Structured Problem Solving Process for solving all problems on the Midterm.

d) As part of your problem-solving approach, make appropriate assumptions when necessary, and clearly

state the assumptions you make. Be sure to revisit these assumptions when drawing conclusions.

e) Be sure to explain everything all your work. To improve readability of your explanations, structure your

work with appropriate captions/headings.

f) In addition to headings, all explanatory text must be accompanied by clearly labeled figures, tables, and

diagrams as necessary. Also, key points, results, and conclusions should be clearly marked (e.g.,

highlighted, underlined, etc.)

g) All results, recommendations, and conclusions must be supported by facts (evidence) and/or analysis. To

improve readability, include appendices at the end of each problem to show relevant details.

h) Cite all relevant sources of information, including the case study handed out as part of this midterm.

Note: The Case Study (required for Problem 2 below) is available on Canvas.


First read the Specialty Packaging Corporation (SPC) Case Study (provided on the following two



Create a plan and time-schedule for on the problems below. Also, using an appropriate table (see

Problem 6 below), track how well you execute your schedule, and make notes on obstacles and

problems that prevent effective execution.


What should SPC’s competitive strategy be? What should SPC’s supply chain strategy be to align

with its competitive strategy? Where does SPC lie in the zone of strategic fit between IDU and

responsiveness? What should SPC’s high-level SC strategy be for each of the supply chain drivers?


Use the structured systematic problem-solving approach on this problem, and make sure to provide

clear reasoning and explanations to support “everything” you do. Depending on the number of

smoothing constants in your forecasting method use one or all of the following smoothing constants:

alpha=0.06, beta=0.06, gamma=0.06.

First, form a hypothesis (conjecture) as to which forecasting method Julie Williams should use for

clear plastic, and be sure to explain the basis (rationale) for your hypothesis. Then, test your

hypothesis by implementing all five forecasting techniques that you’ve learned. Which technique

should Julie Williams use for forecasting the demand for clear plastic based on the results of your

implementation of the five forecasting techniques? Was your hypothesis correct?

Page 2 of 2

What is the demand forecast for clear plastic for each of the four quarters of the year 2007? What is

the annual demand for the year 2007? You will need this information for the next task below.

(Important Note: to get credit for this problem, you should work with clear plastic demand data only)


Why should SPC have a cycle inventory? SPC buys polystyrene resin from a supplier in 1000-pound

units, and each unit costs $30.00, and the percent holding cost is 12%. The fixed shipping cost per

order is $250. If we assume that 1000 pounds of resin yields 1000 pounds of clear plastic, what are

the following values for clear plastic:

a) Lot size per shipment to minimize total cost

b) Economic order quantity (EOQ)

c) Number of shipments/year for polystyrene resin in order to meet the forecasted demand for

clear plastic in 2007

d) Cycle inventory

e) Cycle inventory holding cost

f) Replenishment cycle time

g) Average flow time

Use a diagram showing clear plastic inventory as a function of time to illustrate these values.

Read the section in the SCM text on Short-Term Discounting (SCM, Third Edition, Section 10.4 or

Fourth Edition, Section 10.5), and then answer the following question. If the supplier offers a

promotional discount of 30% per unit at the beginning of the year, what is the optimal order quantity,

and how much should the forward buy on polystyrene be? (Be sure to carefully check your answer).


(Note: This problem does not require any knowledge of safety inventory theory, which we will study

later in the course.) Should SPC have a safety inventory? Why? Formulate a simple and rational

approach for specifying how much safety inventory SPC should hold. Based on this approach, how

much safety inventory should SPC hold?


Using a table compare your plan from Problem 1 (column 1) with its execution (column 2). Indicate

the reasons for the difference between the plan and its execution (column 3). Add at least one more

column. What should column 4 contain?

Requirements: multiple pages

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