Identify two specific failures in FreshFruit’s demand forecasting process. Propose one quantitative forecasting method (e.g., moving average, exponential smoothing, causal model) that could have captured the viral trend, and explain why that method would have worked better. Part 2: The Warehouse of Regret (Inventory Management) The Story: To recover, the CEO ordered a "mega-purchase" of dragon fruit directly from a new farm in Vietnam. They bought 3 months’ supply at once to get a 40% discount. The fruit arrived just as a new CDC report warned of a minor pesticide residue issue (not harmful, but scary for consumers). Demand crashed by 70%. The fruit had a shelf life of 10 days.
Meanwhile, a small farm in Costa Rica ( RioAzul ) offered better quality and a flexible contract. But switching would trigger a $200,000 penalty to break the VietDelta deal. supply chain management midterm exam questions
Calculate the total landed cost of this disaster using the data below. Then recommend a specific inventory policy (e.g., Fixed Order Quantity, Periodic Review, or Just-in-Time) for perishable goods, and explain how your chosen policy would prevent the FIFO failure. They bought 3 months’ supply at once to get a 40% discount
Draw (or describe in words) a causal loop diagram showing how one failure triggered the next. Identify the single root cause that, if fixed first, would have prevented the most damage. Justify your choice in two sentences. End of Exam. The fruit had a shelf life of 10 days
Explain the trade-off between environmental sustainability goals and operational performance (cost, quality, speed) in this case. Describe one real, verifiable method (e.g., life cycle assessment, circular supply chain, or third-party certification like B Corp) that FreshFruit should have used before launching Project GreenLeaf to avoid the greenwashing accusation. Part 6: The Digital Pivot (Technology & Integration) The Story: A new interim CEO was hired—you. You implement a cloud-based SCM platform that connects suppliers, warehouses, and retailers in real time. Within 3 months, you reduce spoilage to 8%, cut freight costs by 22%, and forecast accuracy improves to 89%. But the old warehouse manager quits, complaining, "You’re replacing human intuition with robots."
Conduct a qualitative risk assessment of the VietDelta exclusive contract. Identify two specific supply chain risks (e.g., geopolitical, logistical, financial). Then, recommend one risk mitigation strategy (e.g., dual sourcing, contingency clauses, safety stock) that FreshFruit should have used before signing. Finally, perform a break-even analysis to decide: Should they pay the penalty and switch to RioAzul?
Instructions: Read the story below. Then answer the questions that follow. Each question tests a specific SCM principle illustrated in the narrative. Assume you are the new Supply Chain Director. Part 1: The Glory Days (Forecasting & Demand Planning) The Story: FreshFruit Co. was a mid-sized distributor of organic tropical fruit in the Midwest. For a decade, they used a simple rule: "Order 20% more than last year’s same month." It worked well until a viral TikTok video featured their "Dragon Fruit & Lychee Smoothie Bowl." Overnight, demand for dragon fruit exploded by 600%.