Supply Chain Management

Question 1

Supply Chain

Answer 1

Interconnected of firms process across other firms and suppliers to produce g/s

Question 2

Supply Chain Management

Answer 2

synchronization of firms processes with supplies and customers to match flow of materials, services and information with demand

Question 3

Functions or Steps of SCM (5)

Answer 3

sourcing, purchasing, inventory management, logistics, customer relationship

Question 4

Customer benefit bundle

Answer 4

defined set of goods and services that customer recognizes, purchases or use

Question 5

Tier 1 supplier and ex

Answer 5

buy primary material from supplier, etc buy denim for jacket production company

Question 6

Tier 2 supplier and ex

Answer 6

primary material supplier buys from input used for primary material. Ex denim company buys cotton from external supplier

Question 7

focal firm (3)

Answer 7

companies that rule the supply chain
provide direct contact to customer
design product or service offererd

Question 8

Upstream

Answer 8

organizations suppliers and processes for managing relationships with them

Question 9

downstream

Answer 9

organization’s and processes for distributing and delivering products to final customers

Question 10

Efficient Common Designs (4)

Answer 10

minimizing inventory
predictable demand
limited product variety
Compete on cost and consistency

Question 11

Responsive Common Designs (5)

Answer 11

minimize reaction time
high product variety
low demand predictability
inventory stored across the supply chain
compete on customization, quality

Question 12

Efficient Supplier Perspective (3)

Answer 12

limited excess capacity
work with suppliers to reduce lead time, without increasing costs
selection based on consistency, low prices, on-time delivery

Question 13

Responsive Supplier Perspective (3)

Answer 13

flexible operations
inventory minimized for expensive finished goods
work with suppliers to reduce lead times, process order & receive shipment

Question 14

Postponement

Answer 14

Assemble product to a certain point (efficient strategy), send to a warehouse to finish remaining 20% to specifications (responsive). Ex dell computers

Question 15

Make or Buy Decision

Answer 15

involve more integration or more outsourcing

Question 16

integration

Answer 16

make decisions (involve more processes and production methods)

Question 17

outsourcing

Answer 17

buy decision, payment to suppliers to provide needed service and materials

Question 18

Break-even analysis

Answer 18

help with make or buy decision: quantity for cost to buy = cost to make

Question 19

Internalization forms (4)

Answer 19

Offshoring
Vertical integration
backward integration
forward integration

Question 20

offshoring

Answer 20

relocate processes and production in another country

Question 21

Vertical Integration

Answer 21

internalize activities across tiers of supply chain

Question 22

backward integration

Answer 22

movement upstream towards source of raw material

Question 23

forward integration

Answer 23

movement downstream, acquiring distribution channels

Question 24

Inventory Pooling

Answer 24

store finished goods at manufacturer and ship to customer, merges variable demand

Question 25

Forward Placement (more safety stock)

Answer 25

locating stock closer to customers at a warehouse, wholesaler etc

Question 26

Supplier relationships (5)

Answer 26

Sourcing Design Collaboration Negotiation Buying Information Exchange

Question 27

Sourcing

Answer 27

seeking out and evaluating suppliers cost, quality and delivery

Question 28

Performance Matrix

Answer 28

Assign weights to different criteria for suppliers etc W1S1 + W2S2.....WKSK

Question 29

Design Collaboration (3)

Answer 29

Early Supplier Involvement Presourcing Value Analysis

Question 30

Early Supplier Involvement

Answer 30

supplier expertise in creation of new products/services to increase efficiency of operation

Question 31

Presourcing

Answer 31

suppliers selected early in design process and given responsibility for specific component

Question 32

Value Analysis

Answer 32

effort to reduce cost or improve performance of service or products

Question 33

Competitive Negotiation (4)

Answer 33

suppliers as competition zero-sum game short-term advantage leverage purchasing power

Question 34

Cooperative Negotiation (4)

Answer 34

suppliers and partners mutually beneficial objectives: share and trust long term orientation better when few suppliers/sole sourcing

Question 35

Buying (5)

Answer 35

Electronic Data Interchange (EDI) Catalogue Hubs Exchanges Auctions Reverse Auctions

Question 36

Electronic Data Interchange

Answer 36

Technology that enables transmission of standard documents in standard format

Question 37

Catalogue Hubs

Answer 37

enable employees to place orders for approved items

Question 38

Exchanges

Answer 38

Online marketplace, necessary purchases

Question 39

Auctions

Answer 39

exchange where competitive bids are placed

Question 40

Reverse Auctions

Answer 40

bid for contracts with buyers, compete to offer lowest price

Question 41

Information Exchange

Answer 41

transmission of forecasts, schedules, inventory and data

Question 42

Radio Frequency Identification

Answer 42

radio signals and transponders attached to labels to track real time info about products

Question 43

Vendor Managed Inventory

Answer 43

firm locates inventory at customer facility and responsible for managing it

Question 44

Bullwhip effect

Answer 44

ordering patterns show increasing variance as you move upstream

Question 45

Bullwhip example

Answer 45

Grocery ordering is constant, distribution is more variable, warehouse is extremely variable

Question 46

Supply Chain Dynamic External Causes (3)

Answer 46

change to order size and product mixes, late deliveries, underfilled shipments

Question 47

Supply Chain Dynamic Internal Causes (4)

Answer 47

shortages from breakdown or low productivity, order batching, new or changes to product design, promotions