Please read the Case – Mapping the Mac (Page 234-235 of the textbook) and answer

ID: 425914 • Letter: P

Question

Please read the Case – Mapping the Mac (Page 234-235 of the textbook) and answer the following case questions:
Evaluate the applicability of each of the four approaches to supply chain design (SCOR, Supply chain evolution, nature of the product or service or life cycle) to Lillian’s analysis of the Macaroni and Cheese supply chain.
Where should Lillian begin with mapping this supply chain, and why?
Case Mapping the Mac As part of her internship project at Global Foods, Lillian converted to a case cost Loss in manufacturing must also with undenstanding and mapping the incorporated. The glue is pried per cwt Lillian approached one of the product engineers to supply chain for Global Foods' premium macaroni and cheese. This is the macaroni and cheese that comes with the give her some insight into reading the BOM. The the following definitions mix in a pouch. The selling point is that the sauce in a canRemember that the unit of measure is 1 case of tastes closer to homemade. It is priced at 3 to 4 times more than the macaroni and cheese with powdered cheese mix.cWT means hundredweight, which is the same as The cost of this product was too high, according to management. Because it was already priced at such a premium, marketing believed that there was no way that Global Foods could raise the price of the product to con- 100 pounds. It is a common measure in food manufacturing and ingredient buying in the United States. sumers However the cost increases it was experiencing were squeezing the margins. Answer the folliowing questions to help Lillian get started on her SC-mapping project Lillian had been given a bill of materials (BOM) for the mix and needed to trace it back to the individual suppliers, CASE QUESTIONS their subsuppliers, and any sub-subsuppliers. The BOM that Lillian was given appears in Table 7.2. The ingredients in each finished box of macaroni and cheese weigh approxi- mately 1 pound (lb). There are 24 boxes in a case, and each case contains about 24 hundredweight (cwt) of ingredients, not counting the packaging. The shrinkage or loss costs are 2 Where built into the unit cost in the far column. Note that the unit costs are per case of 24 boxes. The packaging is also con- verted to a cost per case of macaroni and cheese. Corrugated shippers and cartons are priced per hundred and need to be 1. Evaluate the applicability of each of the four approaches to supply chain design (SCOR, supply chain evolution, nature of the product or service, or life cycle) to Lillian's analysis of the macaroni cheese supply chain. Table 7.2 Bill of Materials for Premium Macaroni and Cheese Mix 24 Box Case Product Code: 6001 Date of Last Update: 12/20/2004 Approved by: Bill Jenkins, Materials Scientist Cope Durum Wheat Pasta Noodles-R-Us 11234 Cheese Sauce Mix Ingredient Cost 75% 2.00% 0.18240 29% 009% 006012 $24.00 Stan's Sauces 98549 $18.05 SUPPLTR Brown Boxes Acme Boxes Sticky Wicket 3567 3678 3925 0.50% 002% 2.00% 24 $11.50 $2.77 $0.50 $0.13 $3.40 $25.92 Corrugated Shipper Glue (cwt) 000167 Packaging Cost Total Material Cost

Explanation / Answer

The 4 supply chain design and their applicability of Lillian’s sourcing of Macaroni and cheese are as follows:

Supply chain design

Supply chain theory (definition)

Cheese

Macaroni

SCOR (Supply chains operations reference model)

"This model is used to integrate the key business concepts which include the following: process re-engineering, benchmarking, and measurement in its framework." It focuses on 5 areas of the supply chain: plan, source, make, deliver, return. (Process is repeated several times). It applies from the supplier's supplier to the customer’s customer.

This is the best model to track supplies from the supplier and it focuses on all key areas like planning, sourcing, making, delivering and handling customer complaints where required. It is beneficial to analyze the supply chain from suppliers to company to the customers. IT maps the entire supply chain and identifies the critical areas and also where a problem might arise. It will also help to create a supply chain map and increase return on investments.

Supply chain evolution

Supply chains evolve and change in size, shape, and configuration and in how they are coordinated, managed and controlled. It identifies the 6 parameters that interact with the supply chain in its life cycle, namely technology and innovation, economics, market competition, regulations, procurement, supply chain management and re-engineering.

This is suitable for innovating and developing a new product and might not be suitable for existing ingredients and already established supply chain and supplier.

Nature of product or service

The products are separated into two type of products: functional products and innovative products. Functional products have a stable demand, longer life cycle and longer lead times. The innovative products have a shorter life cycle, more variety, shorter lead times.

This is suitable for introduction of innovative products and can apply to cheese and macaroni when the global foods plan to innovate and introduce newer variants and more options, which require different ingredients, flavors, tastes etc.

The life cycle of the product

The product lifecycle can be dived according to their characteristics, revenue generated, the range of products etc. For example, a Christmas tree has a limited life cycle around Christmas time only. This tool is rarely used in supply chain management

This concept cannot be applied as cheese is integral part of most components hence will always be in the growth stage

This concept cannot be applied to macaroni as it’s an evergreen product can many variants can be introduced keeping it in the growth stage of the life cycle.

Ans 2. Lillian should start mapping the supply chain from the supplier/manufacturers end. The statelier diary for cheddar cheese and Durum’s wheat pasta from Noodle-R-US as these comprise the major part of the Bill of material. Second, she should work on the packaging material as it is critical to ensure its available when the cheese and pasta arrive.