Supply Chain Design and Implementation

This assignment will help you develop an understanding about the life cycle of supply chains including the models that are aligned with it and the cost it bears. In addition, you will develop an awareness of the elements of the supply chain that should be monitored to ensure the desired results are being obtained.

Scenario:

You have been asked to be a guest speaker in a high school business class. Your task is to explain the basic concepts of supply chain management to a group of students. The students will take a quiz on based on the information in your presentation.

Instructions:

Develop a creative, engaging, educational handout that students can use to prepare for the quiz. Your handout should accomplish the following tasks.

1. Diagram and explain the life cycle of a supply chain.
2. Explain, and provide examples of, the models organizations use to manage forecasting, planning, and inventory.
3. Examine, and provide examples of, the costs absorbed by organizations with respect to inventory and logistics.
4. Describe how organizations use various parameters to monitor supply chain performance and provide examples.

Your handout should be written in a clear, concise, and organized manner, as well as demonstrate ethical scholarship in accurate representation and attribution of sources (i.e., APA); and display accurate spelling, grammar, and punctuation.

…

Supply Chain Management

Pagoda.com Pagoda management has put together the following fig-
l d ‘ ures, outlining the yearly costs associated with the current sys-
0 uctlon‘ . . tem and the Indian proposal:
Pagoda.com is an Internet semce prOVider (ISP) that caters to
individual consumers and small businesses who require a high Current Online Help Desk
level of service and are willing to pay a premium for it. Specifi-
Personnel costs:
cally, Pagoda.com offers state-of-the-art email applications and
W . . 40 full-time-equivalent (FTE) technical experts @ $40,000
eb-building software, as well as plenty of storage space and fast

per year (salary and benefits); 3 supervisors @ $70,000
access Via its high-speed servers. I’he marketing vice preSident, ea ‘h er ear (sala and benefits)
Ierry Hunter, puts it this way: “There are a lot of companies out L p Y ry
there promising the cheapest Internet access. But what do you Equipment costs:
get for your money? Slow- or no-access, a mailbox full of spam, 4 servers @ $2,000 per year
and an endless stream of system crashes. And I won’t even men- 20 PCs @ $1,000 per year

tion the lack of support if you have a technical question. Por a Variable costs:
few dollars more a month, we give our customers the env1ron- $1 50
per request (of (ice supplies, fax paper, etc.)
ment they need to be productive-without haying to think
about whether or not they can retrieve their email, or whether New Delhi Proposal
their Web site has crashed. It’s no surprise, then, that we have the I“ ed
highest customer satisfaction and retention rates in the industry.” ix “St
$1,500,000 per contract year (to cover administrative and
The Online Help Desk IT Co5”)
One of Pagoda’s services is its online help desk. The online help Charge:
desk works as follows: Customers who are experiencing tech- 3050 per request
nical problems, or who Simply have questions about their ac-
count, enter a one-on-one chat room, where they can interact Questions
directly with an expert. Problems are usually resolved within 1. Calculate the total cost of outsourcing the online help desk
10 minutes, and customers have listed it as one of the top three versus staying with the current solution. Which option is
reasons they stick with Pagoda.com. Presently, Pagoda has cheaper?
enough capacity to handle up to 900,000 requests per year, al- 2. What other factors, other than costs, should Pagoda con-
though management doesn’t expect the number of requests to sider? How would you weigh these factors? Given the
change much from the current level of 800,000 per year. above, how might you use a weighted-point evaluation
A firm located in New Delhi, India, has approached Pa- system to evaluate the two options?

goda about outsourcing the online help desk The offer is at- 3. Should Pagoda.com outsource its online help desk? Why
tractive. The New Delhi firm’s own personnel would handle the or why not? Be sure to consider Tables 7.6 and 7.7 when
help desk function. These personnel all speak English fluently framing your answer.
and have college degrees or appropriate technical backgrounds. 4. A statement of work typically specifies performance mea-
And because they are located in India, labor costs would be surements that the buying firm can use to determine
a fraction of what they are in the United States. The savings whether the service provider is meeting the terms of the
would be passed on, in part, to Pagoda. And since the help desk contract. What performance measurements would you
chat room exists on the Internet, Pagoda’s customers should be recommend be put in place? What should happen if the
unaware of the switch. service provider fails to meet these requirements?

Supply Chain Management

Pagoda.com Pagoda management has put together the following fig-
l d ‘ ures, outlining the yearly costs associated with the current sys-
0 uctlon‘ . . tem and the Indian proposal:
Pagoda.com is an Internet semce prOVider (ISP) that caters to
individual consumers and small businesses who require a high Current Online Help Desk
level of service and are willing to pay a premium for it. Specifi-
Personnel costs:
cally, Pagoda.com offers state-of-the-art email applications and
W . . 40 full-time-equivalent (FTE) technical experts @ $40,000
eb-building software, as well as plenty of storage space and fast

per year (salary and benefits); 3 supervisors @ $70,000
access Via its high-speed servers. I’he marketing vice preSident, ea ‘h er ear (sala and benefits)
Ierry Hunter, puts it this way: “There are a lot of companies out L p Y ry
there promising the cheapest Internet access. But what do you Equipment costs:
get for your money? Slow- or no-access, a mailbox full of spam, 4 servers @ $2,000 per year
and an endless stream of system crashes. And I won’t even men- 20 PCs @ $1,000 per year

tion the lack of support if you have a technical question. Por a Variable costs:
few dollars more a month, we give our customers the env1ron- $1 50
per request (of (ice supplies, fax paper, etc.)
ment they need to be productive-without haying to think
about whether or not they can retrieve their email, or whether New Delhi Proposal
their Web site has crashed. It’s no surprise, then, that we have the I“ ed
highest customer satisfaction and retention rates in the industry.” ix “St
$1,500,000 per contract year (to cover administrative and
The Online Help Desk IT Co5”)
One of Pagoda’s services is its online help desk. The online help Charge:
desk works as follows: Customers who are experiencing tech- 3050 per request
nical problems, or who Simply have questions about their ac-
count, enter a one-on-one chat room, where they can interact Questions
directly with an expert. Problems are usually resolved within 1. Calculate the total cost of outsourcing the online help desk
10 minutes, and customers have listed it as one of the top three versus staying with the current solution. Which option is
reasons they stick with Pagoda.com. Presently, Pagoda has cheaper?
enough capacity to handle up to 900,000 requests per year, al- 2. What other factors, other than costs, should Pagoda con-
though management doesn’t expect the number of requests to sider? How would you weigh these factors? Given the
change much from the current level of 800,000 per year. above, how might you use a weighted-point evaluation
A firm located in New Delhi, India, has approached Pa- system to evaluate the two options?

goda about outsourcing the online help desk The offer is at- 3. Should Pagoda.com outsource its online help desk? Why
tractive. The New Delhi firm’s own personnel would handle the or why not? Be sure to consider Tables 7.6 and 7.7 when
help desk function. These personnel all speak English fluently framing your answer.
and have college degrees or appropriate technical backgrounds. 4. A statement of work typically specifies performance mea-
And because they are located in India, labor costs would be surements that the buying firm can use to determine
a fraction of what they are in the United States. The savings whether the service provider is meeting the terms of the
would be passed on, in part, to Pagoda. And since the help desk contract. What performance measurements would you
chat room exists on the Internet, Pagoda’s customers should be recommend be put in place? What should happen if the
unaware of the switch. service provider fails to meet these requirements?