Technology And Information Management

Safety Inventory


Planning and Structured Problem Solving: keep up the good habits you’ve developed!


Readings: (Please do readings in parallel with the homework problems): SCM, 4th Edition, Chapter 11 (Managing Uncertainties in a Supply Chain: Safety Inventory), Chapter 4 (Designing Distribution Networks…), Chapter 5 (Network Design in the SC); Chapter 13 (Transportation in a SC), and Chapter 14 (Sourcing).


Homework Problems (due Thursday, 27 February, 2020)

Quantitative Problems (Chapter 11: Managing Uncertainties in a Supply Chain: Safety Inventory):

1. Exercise 11.2

2. Exercise 11.3

3. Exercise 11.4

4. Exercise 11.5



McMaster-Carr: Please read the slide presentation by Daniel Lifschitz on SCM at McMaster-Carr, available on Canvas. (Additionally, this company is also discussed in the SCM text in several places.) Then answer the following questions:

· What is McMaster-Carr’s business model and supply chain strategy?

· How does SCM at McMaster-Carr differ from companies like Walmart or Office Depot?

· Explain how “aggregation” is important to the success of McM-C’s supply-chain business model.


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