4 - Supply Chains Flashcards
What Is A Supply Chain?
The sequence of processes required for the production and distribution of a good or service to the customer.
What Are The Influences On The Choice Of Suppliers?
(5 Points)
~ Price the supplier charges.
~ Quality a suppliers gives.
~ Predictability, reliability and flexibility.
~ Speed.
~ Payment terms.
What Happens If A Business Does Not Meet Supply?
(3 Points)
~ Loss of sales.
~ Customers go to rivals.
~ Reputational issues.
What Are The Ways A Business Can Match Supply To Demand?
(3 Points)
~ Outsourcing.
~ Use of tempory and part time employees.
~ Producing to order.
Describe ‘Outsourcing’ As A Way A Business Can Match Supply To Demand
Contracting a business process, to an external provider.
What Are The Benefits Of Outsourcing?
(3 Points)
~ Use of specialists, to produce your product.
~ Lower costs.
~ Capital investment, will be less frequent.
What Are The Drawbacks Of Outsourcing?
(2 Points)
~ Loss of control, of the process.
~ Can lead to over reliance, on the external provider.
Describe ‘Use Of Temporary & Part Time Employees’ As A Way A Business Can Match Supply To Demand
Employees, which are contracted to work for a specified period of time.
What Are The Benefits Of The Use Of Temporary & Part Time Employees?
Better able to meet demand.
What Are The Drawbacks Of The Use Of Temporary & Part Time Employees?
High recruitment and training costs.
Describe ‘Producing To Order’ As A Way A Business Can Match Supply To Demand
Production starts, once the order has been received.
What Are The Benefits Of Producing To Order?
(2 Points)
~ Less storage costs.
~ Meaning less wastage.
What Are The Drawbacks Of Producing To Order?
May be hard to meet unexpected surges in demand.
What Will The Amount Of Stock Held Depend On?
(3 Points)
~ Businesses attitude to risk.
~ Speed of change within a market.
~ Nature of the product.
What Does An Inventory Control Chart Look Like?
What Is Meant By The ‘Buffer Stock Level Of Inventory’?
Minimum level of stock.
What Is Meant By ‘Lead Time’?
Time it takes, between placing an order and receiving the delivery.
What Is Meant By ‘Re-Order Level’?
Level of inventory, which triggers an order.
What Is Meant By ‘Re-Order Quantities’?
(2 Points)
~ Amount a company orders, from its suppliers.
~ Difference between buffer stock level and maximum stock level.
