FINAL EXAM REVIEW

Question 1

SC Concept

Answer 1

• view entire set of activities from raw material production to customer purchase to disposal as a linked chain of activities:
  1. Flow of materials
  2. Flow of information
  3. Fund transfer

3 phases: raw materials flow from supplier to man, processed by manufacturer, finished goods distributed

Question 2

Growth in the SC Concept

Answer 2

• originally it was very internal
• companies today compete more on the basis of time & quality
• growth in computer, tech, new approaches, global sourcing, closer rel’s w/ suppliers

Question 3

SCM as a mgmt philosophy

Answer 3

1. systems approach, viewing SC as a whole
2. strategic orientation toward cooperative efforts for interfirm & intrafirm capabilities
3. customer focus to create customer value

Question 4

SCM as activities

Answer 4

• integrated behaviour & processes
• sharing info, risks, rewards
• cooperation & partnerships

Question 5

SCM as processes

Answer 5

• processes focuses on meeting customer demands, firm is organized around these processes
• CSR, CSM, demand mgmt, procurement, production

Question 6

Distribution channels and importance of intermediaries in the DC

Answer 6

Manufacturer - agents or brokers - wholesaler - retail - customer
Intermediaries reduce the number of points of contact, streamlining the sc process

Question 7

Matching Supply and Demand

Answer 7

• Very difficult, uncertainty in supply & demand, changing customer requirements, decreasing product lifecycles, conflicting objectives w/in firm and the supply chain

Question 8

Two Process Views of SC

Answer 8

1. Cycle View - processes are divided into a series of cycles, specifies roles & responsibilities & desired outcome
2. Push/Pull - push is performed in anticipation of cust. order
   pull - initiated by customer order

Question 9

Evolution of Supply Chain Management

Answer 9

1. Fragmentation
2. Consolidation
3. Integration
4. Value Capture
5. Automation

Question 10

Logistics objectives

Answer 10

1. Rapid response
2. Minimum inv
3. Minimum variance
4. Movement consolidation
5. Quality improvement
6. Life cycle support

Question 11

Manufacturing and retail supply chain

Answer 11

MANUF - supplier - godown - factory - DC - store
RETAIL - supplier - godown - central dc - rdc - customer
- Managing the supply chain is core to a retailer’s business
-retailing is assortment, product management

Question 12

Retailer’s role in a SC

Answer 12

one of the important value additions a retailer does is moving the product from the point of origin (Manufacturer) or other source (Supplier) to the point of consumption (Customer).
- Retailers are the final business in a supply chain that links manufacturers to consumers
Retailers increase value by:
1. providing assortment,
2. breaking bulk,
3. holding inventory,
4. providing services.

Question 13

Structure of retailing and SC around the world

Answer 13

US and EU are similar, India and China similar LOOK AT CHART

Question 14

Factors which influenced the growth in international trade

Answer 14

• reduction of trade barriers between countries and regions
• agreements have allowed more open trading within regions
• developing countries now participating

Question 15

Measuring logistics performance

Answer 15

LPI - customs, infrastructure, logistics competence, international shipping, tracking and tracing and timeliness

Question 16

Linear shipping connectivity index

Answer 16

• measures countries access to container shipping services

- ex biggest ship, # of companies providing service, # of services, # of ships, twenty-foot equivalent

Question 17

Globalisation and glocalisation

Answer 17

Global - umbrella term for a complex series of economic, social, technological, cultural and political changes, which continue to take place throughout the world
Glocal - thinking on a global, world-market scale, but adapting to local wants as appropriate

Question 18

Globalisation of the manufacturing sector – trends

Answer 18

• global comp
• global sourcing
• global access to - knowledge and - new tech
• high levels of customer awareness

Question 19

Outsourcing and offshoring

Answer 19

Outsourcing - transferring mgmt & delivery of process to a third party
Offshoring - transferring specific processes to lower cost locations in other countries
- outsourcer can offshore

Question 20

Reasons why companies outsource

Answer 20

• reduce costs (logistics, taxes, capital, direct & indirect)
• share risk
• learn from local suppliers
• tariffs

Question 21

Supply Chain Integration

Answer 21

• alignment and interlinking of business processes

- internal, backward, forward, forward & backward

Question 22

Supply Chain Strategies

Answer 22

taking a ‘bottom–up’ perspective of strategy allows us to see how logistics can contribute to the wider business unit and firm strategies
LEAN & AGILE
L - inventory kept at a minimum & replenished only when used
A - mass customization

Question 23

Taxonomy for selecting global supply chain strategies

Answer 23

Lean, Cont. Repl - d = P, LTS
Agile, Quick Resp - d = uP, LTS
Lean, planning & execution - d = P, LTL
Leagile - d =uP, LTL

Question 24

Characteristics of different transport modes

Answer 24

• air, road, water, rail, pipeline
  road - fixed cost low, variable cost medium, favourable in speed, availability, dependability, and frequency but bad b/c limited capacity
  rail - fixed cost high, variable cost is low, good on speed, dependability and capacity
  air - fixed cost low, variable cost high, speed
  water - fixed cost medium, variable cost low, slow

Question 25

Defining and classifying logistics companies

Answer 25

Consignor - who sends consignment Consignee - receives the consignment Hauliers/trucking companies Freight forwarders - arrange transportation for freight, arrange customs clearance NVOCC - companies who consolidate smaller shipments from various consignees into full container loads which the NVOCC then takes responsibility for Couriers Integrators - FedEx

Question 26

Importance of procurement

Answer 26

Procurement is a strategic activity

Question 27

Managing value and risk (the Kraljic Matrix

Answer 27

Leverage items - high profit impact, low supply risk Strategic items - high profit impact, low supply risk Non-critical items - low profit impsct, low supply risk Bottleneck items - low profit impact, high supply risk

Question 28

Importance of inventory management

Answer 28

- invenotry is in all levels of supply chain - raw m, wip, finished good, in transit - inventory is expensive - without inventory one minor problem in the supply chain would result in a stoppage of the entire chain

Question 29

Objectives of Efficient Warehouse Operations

Answer 29

1. Timely customer service 2. Keep track of items so you can find them easily 3. Minimise total effort & cost 4. Provide communications links with customers

Question 30

Warehouse activities

Answer 30

1. Receive 2. Identify 3. Dispatch 4. Hold goods 5. Pick goods 6. Marshal 7. Dispatch 8. Operate info system

Question 31

Cube utilization and accessibility

Answer 31

- CU is measure of how well space is utilized | Accessibility means being able to get at the goods wanted with a minimum amount of work.

Question 32

Locating stock - basic systems

Answer 32

- Group functionally related items together - Group fast moving items together - Group physically similar items together - Locate working stock & reserve stock separately