Exam 2 Chapter 9 Flashcards
(32 cards)
Distribution Centers
warehouses that act as intermediaries between factories and customers, shipping directly to customer or to retail stores where products are made available to customers.
Inventory
refers to raw materials, work in process, or finished goods that are maintained to support production or satisfy customer demand
Supply Chain Operations Reference
framework for understanding the scope of SCM that is based on five basic functions involved in managing a supply chain: plan, source make, deliver, and return.
What is the basic purpose of a supply chain?
to coordinate the flow of materials, services, and information among the elements of the supply chain to maximize customer value
What are the key functions of the supply chain?
purchasing and procurement of materials sales and order processing operations inventory and materials management transport distribution IT finance customer service
What is the SCOR model?
framework for understanding the scope of SCM that is based on five basic functions involved with the SC
What are the five aspects of the SCOR Model?
Plan Source Make Deliver Return
Define SCM
management of all activities that facilitate the fulfillment of a customer order for a manufactured good
What idea did Dell introduce into the area of SCM?
Make-to-Order
How does Dell’s make-to-order system function?
Dell pulls component parts into its factories based on actual customer orders and carries no finished goods inventory
What are the advantages to Dell’s make-to-order system?
Provides the customer with the newest technology rather than one that has been on the shelf for months
Contract manufacturer
firm that specializes in certain types of goods-producing activities such as customized design, assembly, etc.
Define efficient supply chains
designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow.
Responsive supply chains
focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements
Push system
produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale where they are stored as finished goods.
What are the advantages of the push system?
immediate availability
reduced transportation costs
When do push systems work best?
when sales patterns are consistent
when there are a small number of distribution centers and products
Pull system
produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages
When are pull systems most effective?
many production facilities
many points of distribution
large number of products
Push-pull boundary
point in the supply chain that separates the push system from the pull system
Postponments
process of delaying product customization until the product is closer to the customer at the end of the supply chain
What is the purpose of a sustainable SC?
reduce costs while helping the environment
Define green sustainable supply chain
process of using environmentally friendly inputs and transforming these inputs through change agents-whose by-products can improve or be recycled within the existing environment
define manufactured good recovery
recovering manufactured goods that may be discarded
