Description

Advanced Supply Chain Management

April 2025 Examination

 

 

Q1. Frito-Lay has over three dozen brands of snacks and chips, 15 of which sell more than $100 million annually each, and 7 of which sell over $1 billion each. Its brands include Fritos, Lay’s, Doritos, Sun Chips, Cheetos, Tostitos, Flat Earth, and Ruffles. Frito-Lay relies on effective AGGREGATE PLANNING to match fluctuating multi- billion-dollar demand to capacity in its 36 North American plants. Planning for the intermediate term (3 to 18 months) is the heart of aggregate planning.

1. a) Explain the two (2) Generic Aggregate Planning Strategies and the Pros & Cons of each of these strategies.
2. b) Explain the key steps in Aggregate Capacity Planning. (10 Marks)

Ans 1.

Introduction
Aggregate planning is a crucial component of supply chain management, involving medium-term decision-making to balance supply and demand efficiently. Companies like Frito-Lay, with a diverse product portfolio and fluctuating demand, depend on effective aggregate planning to optimize resources while meeting customer requirements. This process is vital for maintaining cost-effectiveness, ensuring customer satisfaction, and achieving organizational goals in a competitive market. Aggregate planning bridges the gap between long-term strategic decisions and short-term operational planning, focusing on optimizing production, workforce, and inventory levels over a horizon of 3 to 18

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Q2. Aeolus Wind Energy, an international wind turbine manufacturer is facing ongoing challenges with timely supply of crucial components for its production, causing frequent disruptions. Despite extensive internal efforts to address the issue, production delays and cost escalations keep occurring due to last-minute rescheduling and procurement. The lack of delivery reliability is leading to dissatisfied customers and contractual penalties, significantly impacting the company.

Willem van Hoff, the COO has undertaken a major review and revamp of the company’s Global Supply Chain. Discuss the factors that the COO needs to consider while redesigning the company’s global supply chain network.       (10 Marks)

Ans 2.

Introduction
The efficiency and resilience of a global supply chain are vital for companies operating in industries such as renewable energy, where timely delivery and cost control significantly influence competitiveness. Aeolus Wind Energy’s ongoing challenges with delivery reliability and supply chain disruptions highlight the importance of a robust and adaptive supply chain network. Addressing these issues requires a comprehensive redesign of the supply chain that aligns with business goals, customer expectations, and market dynamics. A well-designed global supply chain ensures operational efficiency, reduces risks, and enhances customer satisfaction. For Willem van Hoff, the COO, a systematic approach to

 

 

Q.3. Clothes Horse Fashions specializes in the manufacture and sale of ready-made clothing, primarily focusing on designer dresses and sportswear. With a global network of sales agents responsible for their respective geographic regions, the company is experiencing explosive growth. However, the company is currently facing intense pressure to continually enhance its supply chain performance in order to maintain its competitive edge.

To address this challenge, Jack Wilcox the COO is now keen to restructure their supply chain to optimize its operations and is trying to decide between implementing VMI or CPRF. While David Rakich, the SVP of Operations is in favor of adopting CPRF, the CIO, Ann Rosenthal, is leaning towards adopting VMI.

1. What is VMI? What arguments can Ann use to make the case for VMI and against CPRF? (5 Marks)

Ans 3a.

Introduction

Vendor-Managed Inventory (VMI) is a collaborative inventory management approach where the supplier takes responsibility for managing and replenishing inventory levels based on agreed-upon parameters. This strategy is particularly beneficial in dynamic industries like fashion, where demand volatility and seasonality are common. For Clothes Horse Fashions, adopting VMI could streamline operations, reduce costs, and enhance

 

 

1. What s CPRF? What arguments can David use to make the case for CPRF and against VMI. (5 Marks)

Ans 3b.

Introduction

Collaborative Planning, Forecasting, and Replenishment (CPFR) is a strategic approach to supply chain management that emphasizes collaboration between supply chain partners to align forecasts, share insights, and streamline replenishment processes. For Clothes Horse Fashions, adopting CPFR could foster better partnerships and improve supply chain visibility. David Rakich, the SVP of Operations, advocates for CPFR due to its co