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Global supply chain management > Final GSCM > Flashcards

Final GSCM Flashcards

(76 cards)

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1
Q

Drivers of sourcing relations

A

Specificity

Transaction costs

Contract duration

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2
Q

Specificity

A

Refers to how common the item is and, in a relative sense, how many substitutes might be available

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3
Q

Transaction costs

A

Costs associated with making a purchase: ordering, selecting, billing, price setting, etc.

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4
Q

Contract duration

A

Length of the relationship

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5
Q

Types of relationships

A

Strategic alliance

Spot purchase

Request for proposal

Reverse auction

Request for bid

Vendor managed inventory

Electronic catalog

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6
Q

Strategic alliance

A

Close relationship

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7
Q

Spot purchase

A

No relationship, market based

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8
Q

Request for proposal

A

Requirements are formulated and potential vendors prepare a detailed proposal how they intend to meet requirements, including a price

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9
Q

Reverse auction

A

Sellers compete (often electronically) to obtain business, and prices typically decrease over time, buyer specifies the item

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10
Q

Request for bid

A

Specification of item is given and price is the main or only factor in selecting

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11
Q

Vendor managed inventory

A

The supplier manages an item or group of items for a customer

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12
Q

Electronic catalog

A

Online purchasing

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13
Q

Bullwhip effect

A

The phenomenon that small fluctuations in demand at the customer end of the supply chain are amplified to extreme fluctuations at the supplier side of the supply chain.

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14
Q

Causes of the Bullwhip effect

A

Order synchronisation

Order batching

Trade promotion and forward buying

Reactive and over-reactive ordering

Shortage gaming

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15
Q

Order synchronization

A

Customers order on the same order cycle

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16
Q

Order batching

A

Retailers may be required to order in integer multiples of some batch size

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17
Q

Trade promotion and forward buying

A

Supplier gives retailer a temporary discount / retailer purchases enough to satisfy demand until the next trade promotion.

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18
Q

Reactive and over-reactive ordering

A

Each location forecasts demand to determine shifts in the demand process / responding to a ‘high’ demand observation.

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19
Q

Shortage gaming

A

To secure a better allocation, the retailers inflate their orders

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20
Q

Consequences of Bullwhip effect

A

Inefficient production or excessive inventory

Low utilization of the distribution channel

Necessity to have capacity far exceeding average demand

High transportation costs

Poor customer service due to stock outs

Excessive inventory among the supply chain

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21
Q

Social of triple bottom line

A

Pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business

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22
Q

Economic

A

The firm’s obligation to compensate shareholders who provide capital via competitive returns on investment

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23
Q

Environmental

A

The firm’s impact on the environment and society at large

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24
Q

Total Cost of Ownership (TCO)

A

Estimate of the cost of an item that includes all the costs related to the procurement and use of the item including disposing of the item after its useful life.

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25
Acquisition costs
Purchase planning costs Quality costs Taxes Purchase price Financing costs
26
Ownership costs
Energy costs Maintenance and repair Financing Supply chain/supply network costs
27
Post-ownership costs
Disposal Environmental costs Warranty costs Product liability costs Customer dissatisfaction costs
28
Logistics
Planning, controlling, and implementing the flow and storage of goods from origin to consumption
29
Functions of a warehouse
Storage Sorting and picking Transport Operations
30
Factor rating method (qualitative data)
Possible locations are known Use weights to assign importance of a factor Weakness due to subjectivity of weights Assignment of weight is subjective so the decision may change based on who does it
31
Cost-volume analysis (quantitative data)
To make an economic comparison of known locations Determine fixed and variable costs for each location Fixed costs (e.g. costs for a truck) Variable costs (e.g. costs per product or costs per kilometer) Graphically: - plot cost for each location (y=costs, x=annual volumes -select location with lowest cost for expected volume
32
Centre-of-gravity method
Mathematical technique for finding the best location for a single warehouse Method uses Location of markets (retailers) Volume of goods to be shipped to those markets Costs directly proportional to distance and volume Ideal location: minimizes weighted distance between warehouse and retailers
33
Design of warehouses
Select systems Forklift truck, automated vehicles, etc. Sizing How much storage capacity is needed? Which height/width/depth is appropriate for the building? Layout of the warehouses Position various departments with respect to each other Think of future expansion
34
U layout is appropriate for:
Appropriate for regular warehousing activities
35
I layout
Appropriate for high volume cross docking
36
Cross-docking
Approach to split large shipments into small shipments for local delivery low inventory cost
37
Evaluation of layout design
Objective Minimize the weighted distances between departments The weighted distance is for example the distance from the middle of one area to the middle of another area multiplied with the amount of products that have to be transported between these areas
38
Criteria for choosing transport type
Speed Accessibility Costs Frequency Risks Capability
39
Inventory cost =
Inventory cost = quantity x value per unit x interest rate x time
40
Theoretical minimum number of workstations (Nt)
Nt = sum of task times (T) / workstation cycle time ( C )
41
Project
Unique product, one of a kind. One or small number of products High level of customisation Consumer can give their preferences
42
Jobbing
Small scale, one or a few customised identical outputs. Dedicated to a few products using the same resources. Low volume/ high variety products
43
Batch
More standardized products, producing many identical items. Same production line is used for multiple products Advantage: economies of scale
44
Mass/ line
Similar or identical items produced in high volumes. Efficiency = important
45
Continuous
Products are not countable (only measured in kg, l, m). Similar or identical products that flow through the process. Produces in high volumes Product (almost) never changes Production (almost) never stops
46
Layout
Physical arrangement or grouping of production resources
47
Fixed position
End item remains in the same position while it being produced
48
Functional
Production means are grouped according to function
49
Cellular
Machines are grouped in order to optimize the movement of materials and to reduce the throughput time
50
Product
The arrangement of resources follows the steps in which the end-time is produced
51
Customer Order Decoupling Point (CODP)
Last major stockpoint in the goods flow Point at which a customer gets involved in the production process Deliveries to customers are made from here
52
Internal lead time
Time before the customer gets involved
53
Customer lead time
Time after the customer gets involved
54
Make-to-stock firms
Serve customers from finished goods inventory Essential issue: Balance the level of inventory against the level of customer service Forecasting is a very important task
55
Assemble-to-order firms
Combine a number of preassembled modules to meet a customer’s specifications A primary task is to define a customer’s order in terms of alternative components One capability required is a design that enables as much flexibility as possible in combining components Manufacturing results in customer specific products, assembled in a similar way Maintaining inventories of components is key issue Forecasting at aggregate/component level
56
Make-to-order firms
Make the customer’s product from raw materials and parts Essential issue is to deliver on time, while keeping costs low through high capacity utilization Catalogue products with small demand and specific customer details/specification
57
Purchase-to-order firms
Will work with the customer and will start buying parts/products after an order has been placed Companies wait for the customers to specify their wishes and start procuring after receiving an order Products are very exclusive or specific and will not be kept in stock, but specification is more or less known Customer is willing to wait
58
Engineer-to-order firms
Will work with the customer to first design, then purchase raw material and finally make the product Frequently, Design of the products requires novel solutions and a lot of engineering knowledge Manufacturing might be relatively easier, but still complex: many suppliers, materials, and subcontractors
59
Quality of design
Inherent value of the product
60
Quality conformance
Degree to which the product/ service design specifications are met
61
Quality performances
Performance Features Reliability Durability Serviceability Aesthetics Reputation
62
Importance of quality internally
Decrease of cost, improved planning, reduce fire-fighting, better motivated personnel.
63
Importance of quality externally
Satisfy customers, reputation of the company, product liability.
64
Statistical process control
Involves testing a random sample of output from a process to determine whether the process is producing items within a preselected range.
65
Process Capability Index shows
Shows how well the parts being produced fit into the range specified by the design specification
66
Total quality management (TQM)
Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
67
Six sigma
A statistical term to describe the quality goal of no more than four defects out of every million units.
68
Waste
Anything that does not add value from the customer’s perspective
69
Muda
An activity that is wasteful and does not add value
70
Mura
Unevenness
71
Muri
Over-burden of resources
72
The seven sources of waste
Transportation Inventory Motion Wait Over-processing Over-production Defect
73
5S
Sort Set in order Shine Standardised Sustain
74
Poka Yoke
Mistake proofing
75
Andon: signalling
Communicating that there is an issue, Andon triggers problem solving
76
Kaizen
Continuous improvement

Global supply chain management (3 decks)

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