Question

Review View Help AA : 33 A 21 A® ESSEE - SAE, AaB AaBbccI AaBbcc AaBbO A Heading 1 Normal No Spac... Heading 2 Paragraph Styles O1A: Explain TWO sources of SUPPLY uncertainty faced by a food manufacturer that makes and sells packaged sushi in Hong Kong, and imports food ingredients from different countries including rice from Thailand, fresh seafood from Japan, and plastic containers from China. (10 marks) OIB: Propose ONE method to reduce EACH source of the supply uncertainty you have identified in Q1A. Explain your suggestions. (10 marks) e Q2: Xeoleo is a company in China that produces automatic cup sealing machines for fruit tea and bubble milk tea drinks. The price of this machine is US$515. The product specification is shown below. Model: H-995

Answer 1

1 (A) ANSWER

#SUPPLY UNCERTAINTY

Supply uncertainty refers to the decision making process in the supply chain in which the decision maker does not know exactly what to decide due to lack of transparency of the supply chain and the impact of possible actions.

It is the change of the balance and profitability of the supply chain caused by potential and unpredictable events,which requires a response to re-establish the balance.An events can be unexpected orders,late delivery from a supplier etc..

Sources of supply uncertainty

The major sources can be

1.DEMAND

2.PRICE

3.EXCHANGE RATE

4.DIFFERENT FACTORS(economic,social,technology,political factors etc..)

DEMAND

A demand can be cause to supply uncertainty because as we see the supply and demand both are opposite from each other and if there is high demand then that means price is low and supply will also low , supply and price are both in the positive line and have negative relation with demand.

In the supply uncertainty ,demand affect alots because the demand is related to the importing and the food raw material quality may the cause of supply uncertainty.

PRICE

A price have positive relation with supply of good ,high the price then higher the supply.Price is the thing which a person have to pay for the good we want to consume.

A price affects the supply by falling in price range of that product,by increasing very high price and the inflation, deflation situation etc,,.

EXCHANGE RATE

A exchange rate is the currency which is used for paying for product by one country to another or we can say that the rate on which two countries did the trade .

DIFFERENT FACTORS

Different factors which affects the supply uncertainty include;

1. ECONOMIC FACTOR

An economic factor is related to economy policies,rules,regulation and the gdp and national capital of a nation.As this factor is affect the nation at macro level and the trade environment.

2.SOCIAL FACTOR

Social factor is related to the society and every company works staying between a society and they have to work with keep take care of the society.

3.TECHNOLOGY FACTOR

Technology is very important for all business to be in competition with another companies and in todays time the technology is very advance and if any company have lack of technology then it can't be in competition.

1(B) ANSWER

METHOD TO REDUCE THE SUPPLY UNCERTAINTY

Their are different method and strategies can be y=used to reduce the supply uncertainty which are as follow as:

UNCERTAINTY :WHAT SHOULD I PUT ON INVENTORY

To reduce the supply uncertainty we have to do optimum utilization and less wastage of the material.The supply chain should be responsive to demand and keeping a high customer service level.

UNCERTAINTY :WHEN SHOULD I PERFORM MAINTENCE ON MY PRODUCTION EQUIPMENT

The company have to do prior maintanence schedule, where ,maintenance triggered based either on time schedule or when certain events happen .It relies on expecting when the production equipment is likely to fall due to wear.

UNCERTAINTY :WILL THE PRODUCT I'M PRODUCING NOW PASS THE QUALITY TESTS

The company also have to do quality analysis which identify root causes for producing low quality.They also have to fing the problem in house scrapping components of finished goods due to poor quality.

#ANSWER 2 (A)

DROP SHIPPING (DIRECT SHIPPING NETWORK)

Drop shipping is basically refers to selling a product where the retailer is not actually own anything.The ownership and the possession of the good have with producer who sell the product direct to customer and there is no long chain like wholesale,agents,retailers.

Walmart Consumer purchases product through online retailer. Retailer sends Purchase Order to Supplier via CONSUMER TRADING PARTNERS DATATRANS WEBEDI PORTAL Supplier receives Purchase Order, responds with 856 ASN which includes the tracking number and ships directly to consumer. SUPPLIER DROPSHIPS PRODUCT TO CONSUMER

ADVANTAGES

1.The retailer is free from all the troubles of storing and handling stock .

2.The retailers does not bother about shipping companies and logistics.

3.The manufactures don't have to bother about about marketing and sales techniques.

4.It helps in promoting the international trade and commerce.

DISADVANTAGES

1.It totally based on customer and producers.

2.It is difficult to adopt new technologies.

#ANSWER 2 (B)

Reasons to support the distribution in HONG-KONG

1.The HONG-KONG population is very high as it is located in china and china is very high population country in the world.

2.To sell this machines ,the company can find the best distributors which are already popular.

3.China is very advanced in technology and ready to accept new product with technology.

4.The machines can sell with modified model to sell more and more.