Supply Chain Flashcards
(61 cards)
What are characteristics of a Responsive Supply Chain?
-High demand uncertainty
-High profit margins
-High levels of safety stock
-Prioritizes reducing lead time
-Suppliers are chosen for speed, flexibility, responsiveness and quality
-Have a greater reliance on fast/speedy modes of logistics
What are the characteristics of an Efficient Supply Chain?
-Predictable/Stable Demand
-Low demand uncertainty
-Low Profit Margins
-High average utilization rates
-High inventory turns and minimize inventory through the supply chain
-Reduce lead time as long as it doesn’t increase cost
-Suppliers selected for cost and quality
-Relies on low cost modes of logistics
When is a Decentralized Supply Chain more appropriate?
When there are many points of sale
How do Efficient and Responsive supply chains relate to Centralized vs Decentralized strategies?
-A centralized strategy needs an efficient supply chain
-A decentralized strategy needs a responsive supply chain
Why would a company consider Outsourcing?
-Lack of capacity in house
-Supplier has better technical capabilities
-To focus more on core capabilities
Why would a company want to Offshore?
-To be closer to offshore customers
-Offshore has better cost/price
-Offshore has better technical capabilities
-Faster response to offshore customer
What are some pitfalls of Offshoring?
-You may lose the ability to do the task offshore
-You many not get a good understanding of your overall product cost
-Exchange rates can be volatile
-you give up control over quality & cost
What is NOT a cost factor when considering offshoring that is not captive?
Real Estate costs
What are some conditions that are more conducive to a Centralized supply chain?
-Demand is stable
-Higher product availability
-Low distribution complexity
A centralized network configuration lends itself to which type of supply chain model?
Efficient
What are some supply chain characteristics (demand, inventory, lead times) of a Functional product?
-Low demand uncertainty
-Stable demand
-Long product life
-Low inventory costs
-Low profit margins
-Low product variety & high volume
-Low stockout & obsolescence cost
What’re reasons for outsourcing?
-Reduce and control costs
-increase flexibility and speed
-decrease lead times
-increase innovation capability
-focus on core capabilities & competencies
-gain access to world class capabilities
-free internal resources for other purposes
-insufficient resources are available internally
-share risks with partner company
What is NOT a driver of offshoring?
social drivers
What are cost drivers for offshoring?
-Exchange rate fluctuations
-Lower comparative cost factors: labor, material
-Falling communication, coordination, and material movement costs
- Economies of scale
-Cost and risk sharing in joint ventures
What are some pitfalls of offshoring?
-Inaccurate determination of overall product costs
-Lack of control over costs and quality
-Exchange Rate volatility
-Political uncertainty in the target market
What are some characteristics of a PULL system?
-Faster reactions to defects
-Operators only work when signalled
-No slack in the system
What is an advantage that a Decentralized strategy has over a Centralized strategy?
shorter shipping distances
What is the philosophy of Lean?
Eliminate waste
T/F In a traditional push system, throughput time will usually increase as WIP increases.
True
What’s the difference between a push and pull system?
A PUSH system keeps operators and materials busy while a PULL system keeps operators idle and material busy
What are some characteristics of a PULL system?
- Faster reaction to defects
- Operators only work when there’s a signal to produce
- There’s no slack in the system(?)
T/F In a PULL system the production line is controlled by the first operation
False
What is a common internal strategy to match supply with demand?
sub-contract
What’s a common external strategy for matching supply and demand
promotion or sales
