Map the transportation modal choices (ocean, air, truck, rail) that FreshFruit used. For each, state one advantage and one disadvantage for perishable goods. Then, propose two specific KPIs (Key Performance Indicators) that FreshFruit should monitor with a Transportation Management System (TMS) to prevent future bankruptcies and delays. Part 5: The Sustainability Trap (Green SCM) The Story: To repair their brand, the CEO launched "Project GreenLeaf": all packaging would be biodegradable, and they would offset carbon by planting trees. However, the new packaging fell apart in high humidity, causing 20% more product damage. The tree-planting partner turned out to be a fraud (no trees planted). Customers accused FreshFruit of greenwashing. Sales dropped another 30%.
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.
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%. 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.
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. Map the transportation modal choices (ocean, air, truck,
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.
The warehouse manager cried. They had no FIFO (First-In-First-Out) system. Old fruit rotted in the back while new fruit was pushed to the front. Spoilage reached 45%. The company had to pay $15,000 in hazardous waste disposal fees. Part 5: The Sustainability Trap (Green SCM) The
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."
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.
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?
Name the specific type of SCM technology (e.g., IoT sensors, blockchain, RFID, AI-based demand sensing) most likely responsible for the spoilage reduction. Then, describe two non-technical barriers to implementing such a system (e.g., employee resistance, data silos, supplier unwillingness). Finally, write a one-paragraph response to the quitting manager that defends the use of data-driven SCM while respecting their experience. Bonus Question (Extra Credit – Integration) The Story: Looking back, all of FreshFruit’s failures—forecasting, inventory, sourcing, logistics, sustainability, and technology—were connected. The viral demand spike caused the rushed sourcing. The bad contract caused the logistics scramble. The logistics failure made the sustainability effort desperate.