Question

1. You are a warehouse manager who has observed that the current warehouse operation has certain weaknesses. You have found new solutions which would replace the earlier ones in order to patch up these weaknesses. While performing a qualitative analysis of the revised plan for the operations, which of the following options would you consider?

1. The safety of the staff if the new solutions are implemented
2. The difficulty of managing the new solutions
3. The safety of the inventory itself with the new solutions 2. The data given is gathered and classified from relevant sources. It concerns a firm that employs multiple vendors (A-Z) and the annual expenditure of company of the company on every vendor.

SUPPLIER	COMMODITY	ANNUAL SPEND
A	Investment	$AA
B	Rebate Fulfillment	$BB
C	Advertising	$CC
D	Service Repairs	$DD
E	Benefits	$EE
F	Paper	$FF
G	Contract Labor	$GG
H	Paper	$HH
I	Telecommunication	$II
J	Service Freight	$JJ

You have found the average spend per supplier by commodity and graphed it.

Which of the following can be the intention of finding this?

1. Increasing or decreasing the volume per supplier
2. Saving administrative cost per supplier
3. Reducing or increasing the spending per commodity

1. 1,2
2. 2,3
3. 1,3
4. 1,2 and 3

Answer 1

For the first half of the question,while performing qualitative analysis of the revised plan as a warehouse manager the option that i would consider is " Difficulty of managing the new solutions".

The reason behind choosing this is that the safety of staff and inventory would have already been considered before implementing the solution, however after the solution is implemented or in a qualitative analysis it is important to understand the overall difficulty rather than individual issues. So the difficulty in managing the solution would give a clear picture of what needs to be improved.

For the second half of the question, the answer would be c.) 1,3

Increasing or decreasing the volume per supplier.

  Reducing or increasing the spending per commodity .

The data in the table shows the relation between each supplier, each commodity and annual spend of the company on each commodity per supplier.

This shows a direct cost of commodities per supplier for the company and not just administrative cost. So from the table, assuming the administrative cost would be tough, and we can only have an idea of total spend per supplier per commodity for the company.

Thus, saving administrative cost per supplier cannot be an option.