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Strategic Supply Chain Management exam 2013
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Literature examStrategic Supply Chain Management
Master: Supply Chain Management
Literature: Skjøtt-Larsen et al. (2007); chapters 1, 2, 3, 5, 8, 9, 11, 12 and 14
21-01-2013
- This literature exam contains 10 open questions (100 points)
- Show your ability to use knowledge from the book of Skjøtt-Larsen et al. when answering
questions. Answers only based on ‘common sense’ are not rewarded.
- Read the questions very carefully. It happens too often that people waste points just because they
have not answered all the (sub) questions or not read the questions well.
- Please provide your answers for each question in the designated boxes. Answers written outside
these boxes are not rewarded.
- Answers are supposed to be given in English. When the English in a question is not clear to you,
please ask.
Student name:
Student number:
2
, Case
Electric Shavers
This case is based on a multinational that is a major player in the male shaver industry (note: this
case description is not an exact presentation of the real situation!).
The company designs and produces electric shavers that are sold all over the world. Typical for this
supply chain is that it is vertically integrated. A large part of the actual manufacturing of shavers is
conducted in-house. In-house operations include the production of plastic housings and covers,
production of parts for and the assembly of power units, driving units and shaving units (core
business), the final assembly, and the packaging of the shavers. The purchasing department is
responsible for the buying of electric parts, packaging, and raw materials like plastics and metal.
The supplier base consists of 150 suppliers.
The plant located in Europe sells the shavers to the National Sales Organisations (NSO’s) of the
company. There is no contact at all between the plant and the customers of these NSO’s. The
customers of the NSO’s include the large well-known retailers around the world like for instance
Wall Mart, but also many smaller ones.
To make sure that delivery times are acceptable, the NSO’s are keeping inventories. For instance,
transport to the USA or South America takes about 4 weeks. The NSO’s have close contacts with
the retailers and place their orders at the manufacturing plant based on actual demand, inventory
levels and forecasts.
Besides the local stocks the company has a large distribution center located nearby the
manufacturing facilities. This distribution center is necessary to optimize transportations costs.
2
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