SCM 300 CHATURVEDI ASU EXAM 2 Questions
and Answers
If Lambda and Mu are given you should be able to calculate...
System Utilization
Lambda is
arrival rate
Mu is
service rate
divide by 60 to find
hr=min=sec
multiply by 60 to find
sec=min=hr
p(rho) is
percentage of time a server is busy
Functional products
long life cycles, low profit margins, predictable demand, and high service levels
(ex. staples that people buy in a wide range of retail outlets, such as grocery
stores and gas stations; dairy, meat, logs, toothpaste, oil, gas, basic clothing)
Innovative Products
short life cycles, high-profit margins, uncertain demand, and low service levels
(ex. products such as fashionable clothes and personal computers that typically
have a life cycle of just a few months; fashion apparel, high-end computers,
expensive cars, etc.)
Functional products have a lifecycle of
over 2 years
, Innovative products have a lifecycle of
3mos-1yr
Functional products have a contribution margin of
5%-20%
Innovative products have a contribution margin of
20%-60%
Functional products have a blank product variety
Low (10-20 per category)
Innovative products have a blank product variety
High (often millions per category)
Functional products margin of error in prod. forecast
10%
Innovative products margin of error in prod. forecast
40%-100%
Functional products avg. stockout rate
1%-2%
Innovative products avg. stockout rate
10%-40%
Functional products avg. forced end-of-season markdown
0%
Innovative products avg. forced end-of-season markdown
10%-25%
Functional lead time for MTO products
6mos-1yr
and Answers
If Lambda and Mu are given you should be able to calculate...
System Utilization
Lambda is
arrival rate
Mu is
service rate
divide by 60 to find
hr=min=sec
multiply by 60 to find
sec=min=hr
p(rho) is
percentage of time a server is busy
Functional products
long life cycles, low profit margins, predictable demand, and high service levels
(ex. staples that people buy in a wide range of retail outlets, such as grocery
stores and gas stations; dairy, meat, logs, toothpaste, oil, gas, basic clothing)
Innovative Products
short life cycles, high-profit margins, uncertain demand, and low service levels
(ex. products such as fashionable clothes and personal computers that typically
have a life cycle of just a few months; fashion apparel, high-end computers,
expensive cars, etc.)
Functional products have a lifecycle of
over 2 years
, Innovative products have a lifecycle of
3mos-1yr
Functional products have a contribution margin of
5%-20%
Innovative products have a contribution margin of
20%-60%
Functional products have a blank product variety
Low (10-20 per category)
Innovative products have a blank product variety
High (often millions per category)
Functional products margin of error in prod. forecast
10%
Innovative products margin of error in prod. forecast
40%-100%
Functional products avg. stockout rate
1%-2%
Innovative products avg. stockout rate
10%-40%
Functional products avg. forced end-of-season markdown
0%
Innovative products avg. forced end-of-season markdown
10%-25%
Functional lead time for MTO products
6mos-1yr
