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Tony’s Chocolonely is a Dutch-based, certified B-corp company that manufactures and distributes chocolate bars. The company’s mission is ending child slavery. The company earns more than $55 million in annual revenues and has become the leading chocolate brand in the Netherlands. Fans pay as much as 30% more for a Tony’s Chocolonely bar compared to brands of similar quality. It’s value proposition is high quality chocolate that is 100% slave-free. Its commitment to SDGs is probably somewhat responsible for Tony’s success, but its use of Industry 4.0 technologies throughout its supply chain makes its commitment to slave-free cocoa possible.

Figure 8.10 illustrates the basic stages in Tony’s supply chain, which is an indirect channel. Tony’s uses blockchain, AI, and predictive modelling technologies to manage its long and complex channel. The company partnered with MarTech provider, ChainPoint, to build a custom platform for its blockchain protocol, which it calls the BeanTracker. The result is a fully transparent “bean to bar” supply chain, recording the origin and flow of the cocoa beans and ultimately the chocolate bars. Tony’s Chocolonely partnered with Oracle Planning and Budgeting Cloud Service for AI and predictive modelling services to analyze order and inventory levels, assess trends, forecast need for raw materials, and estimate sales trends.

  1. How important is Tony’s channel strategy to its success as a brand?
  2. Why does Tony’s use an indirect channel when a direct channel might provide more control over the supply chain?
  3. Why are Industry 4.0 technologies critical to Tony’s ability to meet its mission?

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The Scenario

You are a retailer of appliances (Best Buy, Sears, Sam’s, etc). You are buying a container of appliances from China. 100 appliances fit in the container. Each appliance costs $320. It costs $220 to ship the container to the port. It takes 2-days to get the product to the port. You have the option of shipping the product from Singapore to Seattle and then to Chicago or shipping the product from Singapore to LA and then to Chicago. Assume that you paid for the freight at the port of origin location. The details for each scenario are outlined below:

Scenario 1: Singapore to Seattle to Chicago

The cost to ship a full container is $1,800 from Singapore to Seattle. The port entry fee to handle the container is $110. The distance from Seattle to Chicago is 2,072 miles. Your trucking company charges you $1.02 per mile to move the freight. The product takes 15-days to get to Seattle from Singapore. It takes an additional 6 days to go from Seattle to your facility in Chicago. Once the product arrives in Chicago it is stored in the RDC and shipped to regional stores over a 15 day period. The carrying cost of inventory is 22-percent. Calculate the total landed cost. (show your work)

Scenario 2: Singapore to LA to Chicago

The cost to ship a full container is $1,850 from Singapore to LA. The port entry fee to handle the container is $153. The distance from LA to Chicago is 2,034 miles. Your trucking company charges you $1.00 per mile to move the freight. The product takes 16days to get to LA from Singapore. It takes an additional 6 days to go from LA to your facility in Chicago. Once the product arrives in Chicago it is stored in the RDC and shipped to regional stores over a 16 day period. The carrying cost of inventory is 22percent. Calculate the total landed cost. (show your work)

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A company produces cars and bikes. Each car requires 200 hours of metal working, 24 hours of painting, and 60 hours of assembly. Each bike requires 40 hours of metal working, 12 hours of painting, and 52 hours of assembly. In every month, there are 6500 hours available for metal working, 920 hours available for painting, and 3300 hours available for assembly. Selling a car brings in RM3200 of profit, whereas selling a bike brings in RM1100 of profit. Determine the monthly production rate (thus non-integral answers allowed) for the car and bike to generate maximum monthly profit. Also compute such maximum profit per month. Total: 25 marks)4. What are your likely actions now to ensure that you meet the project success criteria?

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The European Commission recently conducted a survey on passengers’ satisfaction with rail services and discovered that in the case of Bulgarians, 10.1% were very satisfied with the quality of facilities and services, 31.9% were rather satisfied, 29% were rather dissatisfied, and 22.3% were very dissatisfied. Suppose the largest train company in Bulgaria decides to invest considerable time and money to improve the quality of its facilities and services. After using the new policies for a year, company managers want to determine whether the new policy has changed perceptions of the service they offer. They contact 408 of the company’s rail consumers who travelled with the company in the past year and ask them how satisfied they are with the rail services. Fifty-two respond that they are very satisfied. Use a 1% level of significance to test the hypothesis.

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