chapter 11 flashcards

Question 1

write about Darden’s Supply Chain?

Answer 1

• it’s the largest publicly traded casual dining company in the world
• serves over 400 million meals annually in more than 1900 restaurants in the US and Canada
• annual sales of flagship brands total $6billion
• operations is the strategy
• sources food from five continents and thousands of suppliers
• four distinct supply chains.
• over $2 billion spent annually in supply chains
• competitive advantage achieved through superior supply chain

Question 2

what is Supply Chain Management?

Answer 2

planning, organizing, directing, and controlling flows of Goods, Services, Information, Money

Question 3

what’s the process of Supply Chain Management?

Answer 3

• begins with raw materials
• continues through internal operations
• ends with distribution of finished goods

Question 4

what should Supply Chain support?

Answer 4

it must support the strategy of the company (Low cost, rapid response, differentiation)

Question 5

what’s the objective of Supply Chain Management?

Answer 5

maximize value and lower waste

Question 6

what material functions does Logistics Management integrate?

Answer 6

• purchasing
• inventory management
• production control
• inbound/outbound traffic (transportation)
• warehousing and stores
• incoming quality control
• more

Question 7

what’s the objective for Logistics Management

Answer 7

effective and efficient, low cost operations

Question 8

what are the 7 rights of the Purchasing Function?

Answer 8

• right material in the
• right quantity, for delivery in the
• right time and
• right place, from the
• right source, with the
• right service and at the
• right price

Question 9

what is Purchase Requisition?

Answer 9

an internal document, from an internal department to the Purchasing Department, asking for a good or a service to be purchased

Question 10

what is Purchase Order (PO)?

Answer 10

a document from the Purchasing Department to an outside supplier, asking for a good or service.
It’s a formal and legal document, which commits the company. It has a unique serial number

Question 11

what is Request for Quotation(RFQ)?

Answer 11

a document which is sent by the Purchasing Department to suppliers, asking them to provide a price and other conditions, for their good or service

Question 12

what does RFP stand for?

Answer 12

Request For Proposal. (similar to RFQ)

Question 13

what does IFB stand for?

Answer 13

Invitation For Bid (similar to RFQ)

Question 14

what are some purchasing techniques for cost reduction?

Answer 14

• invoiceless purchasing
• electronic ordering and funds transfer (“paperless” ordering and 100% material acceptance, payment by “wire”
• electronic data interchange
• stockless purchasing
• standardization
• outsourcing
• drop shipping and special packaging
• postponement
• channel assembly
• blanket orders
• eliminate the “Bullwhip” effect

Question 15

what is the purpose of Postponement?

Answer 15

it keeps products generic as long as possible

Question 16

whats the point of Channel Assembly?

Answer 16

sends to distributor individual components and modules rather than finished goods

Question 17

what’s a Blanket Order?

Answer 17

a long term purchase commitment to a supplier for items that are to be delivered against short term, releases to ship

Question 18

what are the Reasons for Making?

Answer 18

1. maintain core competencies
2. lower production cost
3. unsuitable suppliers
4. assure adequate supply
   5 obtain a unique item
5. protect proprietary design or quality

Question 19

what are the Reasons for buying?

Answer 19

1. not a core competency
2. lower acquisition and inventory cost
3. inadequate capacity or technical resources
4. ensure flexibility
5. Intel is protected by patent or trade secret
6. quantity it too small to make
7. supplier has excellent quality

Question 20

what are the characteristics of the Many Suppliers strategy?

Answer 20

• many sources per item
• adversarial relationship
• short term
• little openness
• negotiated, sporadic PO’s
• infrequent, large lots
• delivery to receiving dock

Question 21

what are the characteristics of the Strategy of Few Suppliers?

Answer 21

• 1 or few sources per item
• partnership
• long term, stable
• on site audits and visits
• exclusive contracts
• low prices (large orders)
• frequent, small lots
• delivery to point of use

Question 22

what are the 3 sections of Supplier Selection Criteria and their sub categories?

Answer 22

1. Product
   - Quality
   - Price
2. Company
   - Financial Stability
   - Management
   - Location
3. Service:
   - Delivery on Time
   - Condition on Arrival
   - Technical Support
   - Training

Question 22

whats a Consortium?

Answer 22

a purchasing consortium consists of two or more independent organizations that join together, for the purpose of combining their individual requirements for purchase material

Question 23

who uses Consortiums?

Answer 23

government, private and non profit organizations

Question 24

whats the role of Transportation in Logistics?

Answer 24

• it is the physical link connecting the firm to its suppliers and customers
• adds v value to the product by providing time and place utility for the firm’s goods
• as firms engage in global competition, transportation costs are becoming even more significant

Question 25

what is an RF?

Answer 25

scan bar codes, send the information to a warehouse pc, receives information from a computer

Question 26

what is an RFID?

Answer 26

a mini computer chip that stores information and can transmit it

Question 27

what does AS/RS stand for?

Answer 27

Automatic Storage and Retrieval System

Question 28

how does an RFID work?

Answer 28

when a tagged item passes within range of a reader, the reader retrieves the EPC via radio waves, identifies the time and its exact location, and relays this real time information to a central computer

Question 29

what is Outsourcing?

Answer 29

Procuring from external suppliers service or products the firms used to provide for itself

Question 30

what is Offshoring?

Answer 30

moving processes to a foreign country but retaining control

Question 31

what are firms called that outsource ?

Answer 31

they are called clients, the actual work is done by the outsourcing provider

Question 32

what are some common processes that are outsourced?

Answer 32

• purchasing
• logistics
• R and D
• operations
• service managment
• Human Resources
• finance/accounting
• customer relations
• sales/marketing
• training
• legal processes

Question 33

what are the risks to Outsourcing?

Answer 33

• as many as half of all outsourcing agreements fail because of inappropriate planning and analysis
• erratic power grids, government difficulties, inexperienced managers, and unmotivated labour can create problems
• failure to achieve unrealistic goals sometimes creates the impression of failure

Question 34

what are the advantages to Outsourcing?

Answer 34

• cost savings
• gaining outside experience
• improving operations and service
• focusing on core competencies
• gaining outside technolgoies
• other advantages

Question 35

what are the disadvantages of Outsourcing?

Answer 35

• increased transportation costs
• loss of control
• creating future competition
• negative impact on employees
• long term impact