Unit 4: Supply Chain Flashcards
Organix, a fast-casual restaurant chain, makes all the bread used for its sandwiches and grows all the vegetables for its salads. Organix engages in
insourcing
True or false? Agile supply chains focus on being highly responsive to changing customer demands, while lean supply chains focus on keeping costs down by improving efficiency.
True. Agile supply chains respond quickly as new products are introduced and demand changes. A lean supply chain must focus on operating efficiently to minimize costs.
True or false? The system used by Bose, just-in-time II (JIT II), involves assigning Bose personnel to work in the purchasing departments of each supplier to oversee inventory levels.
False.Under JIT II, employees of major suppliers work in the Bose purchasing department and handle all purchases from their companies.
The need for global logistics has primarily been triggered by
Increased Global trade
For an importing-exporting firm based in the United States, additional paperwork required by the U.S. Customs Agency would trigger a ________ bottleneck.
Regulatory
Supply chain bottlenecks are becoming increasingly common because of the rising popularity of agile management, which asserts that firms should keep a limited amount of inventory.
False. Bottlenecks are an increasing threat to supply chain optimization because of the increasing popularity of lean management, which encourages companies to focus on getting rid of excess inventory. Therefore, if there is an unexpected shortage, then there is nothing in reserve and the flow of goods and services halts until the shortage is addressed.
True or false? By forming strategic alliances with supply chain members, a firm can spend more time focusing on its core competences and less time managing supply chain activities.
True. Strategic alliances are important in operations management because they allow organizations to focus on their core competencies rather than trying to manage activities along the entire supply chain.
