Question 1

Read the LeapFrog Case (see below) and answer the following questions:

1. Draw a map of the supply chain for LeapFrog, including the retailers,
Capable Toys, and suppliers of key materials (such as Tyvek). Which
supply chain partners are “upstream” of LeapFrog? Which are
“downstream”? Which partners are first-tier suppliers? Second-tier
suppliers?
2. What data ultimately led to LeapFrog’s decision to increase production
levels of the LittleTouch LeapPads? Where did these data come from?
How long after interpreting these data did LeapFrog start talking with
Capable Toys about increasing production levels? Days, weeks, months?
3. What part of the production process limited output levels at Capable
Toys? How did Capable respond to the challenge?
4. What were some of the material sourcing challenges facing LeapFrog and
Capable Toys? How did they resolve these problems?
5. What type of logistics solutions did Leap Frog use to get the toys to the
stores on time? What are the strengths and weaknesses of these
solutions? If it had been August rather than December, what other
options might LeapFrog have used?

Question 2

A retail store had sales of $45,000 in April and $56,000 in May. The store
employs eight full- time workers who work a 40-hour week. In April the store
also had seven part-time workers at 10 hours per week, and in May the store
had nine part-timers at 15 hours per week (assume four weeks in each month).
Using sales dollars as the measure of output, what is the percentage change in
productivity from April to May?

Question 3 (based on “Order Winners and Order Qualifiers”— see below)

A Chicago-based manufacturer is looking for someone to handle its shipments

to the West Coast. In order to evaluate potential transportation providers, the
manufacturer has developed the following criteria.

At a minimum, a shipper must be able to:

I. Pick up shipments in eight hours or less from the time it is notified (the
manufacturer

doesn’t have enough space for shipments to sit around at the dock).

II. Deliver shipments in 72 hours or less.

Beyond this, shippers will be evaluated according to cost and the percentage of
shipments that arrive undamaged.

Three shippers—McAdoo, Klooless, and Big Al—have put in bids for the business.
The relevant performance information for the shippers is shown in the
following chart.

Criterion McAdoo Klooless Big Al

Pickup time 6 hours 8 hours 9 hours
Shipping time 48 hours 72 hours 36 hours
Cost per 100 lbs, shipped $25 $27 $20
Percent of shipments that arrive undamaged 97% 97% 99%

1. Using Figure 2.3 in the excerpt as a guide, graph how well each of the
shippers performs with regard to the order winners and qualifiers.
2. Who is most likely to win the business? Why?
3. What’s going on with Big Al? What does Big Al need to do to compete
successfully for the business?
4. Comment on Klooless’s competitive position. Does it meet the minimum
requirements? Is the company very competitive? Why or why not?

Question 4

Sailmaster makes high-performance sails for competitive windsurfers. Below is

information about the inputs and outputs for one model, the Windy 2000.

Calculate:
I. the productivity in sales revenue/labor expense
II. the total productivity.