Supply Chain Management — Midterm Exam Questions

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.

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. supply chain management midterm exam questions

The CEO panicked. The forecasting team had not adjusted their models. They kept ordering based on last year’s data. By week three, shelves were empty. By week five, angry retailers switched to a competitor, JungleFruit Inc. Meanwhile, a small farm in Costa Rica (