Chapter 1

Question 1

What is a Supply Chain?

Answer 1

-Every organization offering a product or service has a supply chain
-Can be simple/complex, and exist in organizations that are large/small, public/private, government, forprofit/notforprofit
- From raw material to supplier to manufacturer to distributor to retailer to consumer and continuously flowing around

Question 2

What is the supply chain flow?

Answer 2

From supplier to manufacturer to customer
- Product and service flow goes from supplier to customer
- Information flow both ways
- Payment & returns flow from customer to supplier

Question 3

Supply Chain Partners (tiers 1 through n)

Answer 3

• Tier 1: you have a direct relationship, you will want to build relationships w them
• Tier 2-n: indirect relationship

Question 4

What is supply chain management?

Answer 4

• The coordination of the network of otherwise independent trading partners who are creating a desired product or service, and then moving it through the supply chain out to customers, when and where the customer wants it
• The execution process of any business

Question 5

Supply Chain Management is based on two ideas:

Answer 5

1) every product that reaches an end user represents the cumulative effort of multiple organizations
2) Most organizations have only paid attention to what is going on within their own “four walls”, resulted in disjointed and ineffective supply chains
SCM represents the active management of all supply chain activities to maximize customer value and achieve a sustainable competitive advantage

Question 6

The Value of supply chain management

Answer 6

Creates value by managing the processes of independent trading partners so they can collaborate with one another in an efficient, effective, and cost conscious way

Question 7

Goals of Supply Chain Management

Answer 7

1) Increase Customer Service
2) Reduce Inventory
3) Reduce operating expenses (costs)

Question 8

The main reasons companies implement SCM are to:

Answer 8

Provide excellent service, achieve cost savings, better coordinate resources

Question 9

Supply Chains in the Service Industry

Answer 9

• Service firms offer inangible products (cannot be physically touched)
• Customers are actually paying for the labor and intellectual property of the service provider

Question 10

Differences in Supply Chain of Service Industry

Answer 10

• Customers more directly involved in delivery of services vs the delivery of a physical product
• Frequently involves work on a tangible item provided by customer (supply car for mechanic, supply clothes for dry cleaning)

Question 11

Services are typically produced and consumed ____

Answer 11

simultaneously, and in almost every service offering the service cannot start until the customer arrives and actively participates

Question 12

Facilitating goods

Answer 12

tangible elements used along with the service provided (hair cutting w/ scissors)

Question 13

A supply chain is only as strong as ____

Answer 13

its weakest link

Question 14

Every link in the supply chain is both a _______

Answer 14

customer of their suppliers and a supplier to their customer

Question 15

SCOR stands for

Answer 15

Supply Chain Operations Reference

Question 16

What is the SCOR model

Answer 16

a process reference model developed by the supply chain tool as the standard diagnostic tool for SCM, which helps businesses evaluate and perfect supply chain management for reliability, consistency, and efficiency

Question 17

What are the 5 SCOR performance attributes

Answer 17

Reliability, Responsiveness, Agility, Cost, Asset Management

Question 18

What are the 4 SCOR model components

Answer 18

Plan, Source, Make, Deliver/Return

Question 19

What happens during the Plan phase of the SCOR model

Answer 19

Planning establishes the parameters within which the supply chain will operate, companies need strategy to manage necessary resources (capacity, people, money, etc)
- Includes the determination of marketing and distribution channels, promotions, quantities, timing, inventory and replenishment policies, and production policies

Question 20

What is Sourcing

Answer 20

The process of identifying the suppliers that provide the materials and services needed for the supply chain to deliver the finished products desired by the customers

Question 21

What is “make” in the SCOR model

Answer 21

the series of operations performed to convert raw materials and components into finished products
- finished product is manufactured, tested, packaged, scheduled for delivery
- quality management important aspect

Question 22

What is Deliver in the SCOR Model

Answer 22

the part of SCM that oversees the planning and execution of the forward flow of goods and related information between various points in the supply chain to meet customer requirements

Question 23

The deliver phase in the SCOR model is also known as

Answer 23

Logistics Phase

Question 24

The return phase in the SCOR model is also known as

Answer 24

Reverse Logistics

Question 25

The return (or reverse logistics) phase is...

Answer 25

The part of SCM that deals with planning and controlling the process of moving goods from the point of consumption back to the point of origin for repair, reclamation, remanufacture, recyling, or disposal

Question 26

One additional aspect of the SCOR model is...

Answer 26

ENABLE

Question 27

What is the difference between logistics and supply chain management (logistics)

Answer 27

logistics is just one component of the supply chain, and refers to activities that occur within the scope of responsibilities of a single organization

Question 28

What is the enable phase of the SCOR model?

Answer 28

Enabling processes facilitate a companies ability to manage the supply chain and are spread throughout every stage

Question 29

What is the difference between logistics and supply chain management (supply chain management)

Answer 29

SCM involves a more expansive range of activities, refers to a network of independent companies that work together and coordinate their actions to deliver a product or service to the market for the benefit of all the companies in the network

Question 30

What are the 4 foundations of Supply Chain Management

Answer 30

Operations Management, Supply Management, Logistics Management, and Integration

Question 31

What are the elements involved in Operations Management

Answer 31

Forecasting & Demand Planning, Planning Systems, Inventory Management, Manufacturing/Process Management

Question 32

What are the elements involved in Supply Management

Answer 32

Purchasing, Strategic Sourcing, and Supplier Relationship Management

Question 33

What are the elements involved in Logistics Management

Answer 33

Warehousing, DIstribution, Transportation, International Trade Management, Customer Relationship Management, Service Response Logistics

Question 33

What are the elements of Integration

Answer 33

Enabling Systems, Supply Chain Risk and Security Management, Performance Measurement, Project Management

Question 34

What are the two basic supply chain capability models

Answer 34

Efficient model (supply push) and responsive model (demand pull)

Question 35

Efficient Model (supply push)

Answer 35

Supply chain is configured to produce a large volume of product, as quickly as possible, and at the lowest possible cost Characteristics: predictable supply, highly utilized capacity, low-cost production, high inventory turns - Ideal for functional products like toilet paper, common products that people by any and everywhere, lots of suppliers and competition, stable predictable demand

Question 36

Responsive model (demand pull)

Answer 36

Supply chain is configured to be fast and flexible and to respond quickly to dynamic market demand and new product launches Characteristics: need flexible capacity (volume), minimize lead time, inventory of parts, minimal stock outs - Ideal for innovative products like machinery, rapidly changing, short life cycle products, great variety, unpredictable demand

Question 37

Make-to-Stock

Answer 37

producing finished products on the basis of anticipated demand before receipt of an actual customer order

Question 38

Major advantages of Supply Push

Answer 38

Product is immediately available to ship to customers on demand from the inventory created on the basis of the forecast, manufacturers can better plan the utilization of resources, opportunities to take advantage of economies of scale and reduced costs

Question 39

Major Disadvantages of Supply push

Answer 39

High inventories and money tied up in inventory, heavily dependent on accurate forecasting, forecasting errors create inefficiencies, additonal costs, and can lead to inventory shortages or excesses and obsolences

Question 40

Make-to-Order

Answer 40

Producing finished products in response to actual demand (after customer order is recieved)

Question 41

Major advantages of demand pull

Answer 41

high levels of customer service and opportunities for customizaton, reduced dependency on forecasting, very low inventories

Question 42

Major disadvantages of demand pull

Answer 42

every customer order is basically a rush order, manufacturing problems and resource issues will have an immediate impact on throughoutput and customer satisfaction, reduced ability to take advantage of economies of scale

Question 43

A major principle of supply chain management is the use of a _____ and _______ approach to managing the supply chain

Answer 43

standardized and stepwise