SCMG Final Quiz 7-11
Quality can be considered/measured on eight attributes
-Accuracy -Accessibility -Relevancy -Timeliness (Latency) -Transferability -Usability -Reliability -Value
Design and Optimization
-Mathematical tools used to find the best solutions to problems by considering various constraints, variables, and objectives -Excel Solver
Data analysis and visualization
-Using charts, graphs, and dashboards to present complex data in a visually appealing and easy-to-understand format -Developing a model of the current system for analysis -Excel, Access, Tableau
Features of Lean/TPS Organizations
1. Employee empowerment (reduce waste in human potential, which enables reducing all wastes!) 2. Reduced "Hidden Factory" (reduce overhead) 3. Small batch production (reduce overproduction, waiting, and defects; increase agility) 4. Reduced setup times (reduce waiting; increase agility) 5. Pull-type production system (reduce overproduction, inventory, and defects) 6. Mixed-model production (reduce waiting, overproduction, inventory) 7. Cross-functional teams (improved decision-making and ability to reduce all wastes) 8. Total productive maintenance (TPM) and process reliability (reduce waiting, defects, inventory) 9. Workplace organization, Visual management, and Standard work (reduce overproduction, inventory, waiting, process, motion, defects) 10. Jidoka: No mistakes or defects allowed to proceed in a process (reduce defects, processing, inventory) 11. Supplier partnerships (reduce overproduction, inventory, defects, waiting, processing; better serve final customer)
Sustainable Supply Chain: Logistics and Distribution
1.Efficient Transportation: -Consolidates shipments, optimizes routes, and encourages the use of eco-friendly modes (rail, sea, etc.). -Selecting a mode of transportation to reduce GHG emissions. 2.Smart Warehousing: -Implements technologies for inventory management and space optimization which minimizes waste. 3.Reverse Logistics: -Manages product returns, repairs, and recycling to reduce landfill waste.
Sustainable Supply Chain: Manufacturing/ Operations Process
1.Minimize Environmental Impact: -Reduce emissions, pollution, and waste throughout the production lifecycle. 2.Ethical and Social Responsibility: -Ensure fair labor practices, worker safety, and community well-being. 3.Innovation and Technology: -Embrace advancements to create eco-friendly products and processes. 4.Lean Manufacturing: -Streamlines processes to eliminate waste, reduce energy consumption, and enhance efficiency.
A linear function exhibits two properties
1.Proportionality - the contribution of a variable grows in proportion to its value. -Y=3X: Proportional, when input doubles, contribution doubles -Y=x^2: Not proportional 2.Additivity - we can separate the contributions that come from different variables. -Z = 2X + 3Y: Additive -Z = 2X*Y: Not additive
Linear Programming
A linear program is an optimization model where -The objective function is a linear function -All the constraints are linear functions -Decision variables can take on fractional values (e.g. we can build 8.43 warehouses) -Linear programs are super easy -Non-linear programs are super hard
TMS (Transportation Management System)
A software module that sits between warehouse management and an ERP system.
Company Alpha: •Develops products with modular designs, allowing for easy component replacements and upgrades. •Collaborates with suppliers to source materials from certified sustainable sources. Company Beta: •Adopts a linear production model with a focus on maximizing output and minimizing costs. •Disposes of end-of-life products through recycling programs, ensuring minimal environmental impact. Company Gamma: •Prioritizes innovative product designs with short lifecycles to drive consumer demand. •Engages in resource extraction without considering long-term ecological consequences. Which company demonstrates a strong alignment with the principles of a circular economy? A) Alpha B) Beta C) Gamma
A) Alpha
The demand for freight transportation is a consequence of demand for something else (Commodities, Services, etc.). This type of demand is known as: A) Derived Demand B) Supply and Demand C) Utilization of Demand D) Direct Demand
A) Derived Demand
According to the UN Brundtland Commission, Sustainability is defined as: A) Meeting the needs of the present without compromising the ability of future generations to meet their own needs. B) Managing the environment to reduce global warming and waste C) Reducing cost and improving profit D) Providing customers with ethically produced products
A) Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Typical products moved via Pipeline include: A) Oil and Oil Products B) Direct to Consumer Products C) Large Shipping Containers D) High value products that require Expedited Shipping
A) Oil and Oil Products
Some of the solutions to achieve a sustainable supply chain are: A) Redesign the supply chain, measure and map, and implement a supply chain governance. B) Measure GHG emissions in areas directly under the company's control. C) Outsource higher GHG emissions functions such as transportation. D) All the above
A) Redesign the supply chain, measure and map, and implement a supply chain governance.
According to the speaker in the video, are humans responsible for climate change? A) Scientifically we are uncertain. The extent of human impact on the climate is unknown. B)Humans are responsible for climate change. C) Humans are not responsible for climate change. D) The speaker in the video did not address this issue.
A) Scientifically we are uncertain. The extent of human impact on the climate is unknown.
Standard work implies that A) Standards exist about products and processes, and everyone is expected to conform to them. B) Each worker has his/her own way of doing things. C) Workers execute tasks based on the instructions of their manager or supervisor. D) Workers are expected to perform tasks to the best of their individual abilities.
A) Standards exist about products and processes, and everyone is expected to conform to them.
Intercoastal Carriers provide service... A) between ports on Atlantic and Pacific Oceans via Panama Canal B) between ports of five Great Lakes C) with Barges & towboats on principal U.S. rivers D) All of the Above
A) between ports on Atlantic and Pacific Oceans via Panama Canal
5) LTL Trucking companies provide service to A) shippers who tender shipments lower than the minimum truckload quantities. B) shippers who tender sufficient volume to meet the minimum weights required for a truckload shipment. C) shippers who tender shipments ranging from 1-100 lbs. D) shipper who utilize intercoastal water transportation exclusively.
A) shippers who tender shipments lower than the minimum truckload quantities.
Waste (muda)
Anything beyond the minimum resources (material, labor, parts, time, equipment,) necessary to add value to a product or service Emphasis in lean production is on maximizing value-added activities and eliminating non-value-added activities
How does a circular economy differ from a linear economy in supply chain sustainability? A) A circular economy maximizes resource extraction, while a linear economy focuses on resource conservation. B) A circular economy promotes continuous resource use, while a linear economy follows a "take-make-dispose" approach. C) A circular economy disregards the environmental impacts of products, while a linear economy emphasizes social aspects. D) A circular economy solely relies on new raw materials, while a linear economy prioritizes recycling.
B) A circular economy promotes continuous resource use, while a linear economy follows a "take-make-dispose" approach.
What does the term "Triple Bottom Line" refer to in the context of a sustainable supply chain? A) Three separate financial statements companies prepare annually. B) A framework that evaluates a company's performance based on social, environmental, and economic factors. C) An accounting method focusing on the life cycle assessment of products. D)The process of measuring only the circularity of the supply chain
B) A framework that evaluates a company's performance based on social, environmental, and economic factors.
1)What is the process of examining data to find patterns and gain insights known as? A) Data Encryption B) Analytics C) Data Entry D) Programming
B) Analytics
Which of the following statements best encapsulates the principles of sustainable supply chain procurement? A) Choosing suppliers solely based on the lowest cost of materials and services without considering environmental, social, and ethical factors. B) Evaluating suppliers on environmental, social, and ethical criteria, ensuring supply chain transparency, and prioritizing suppliers that support a circular economy. C) Ensuring that all suppliers are from the same geographical region to reduce transportation emissions, regardless of their sustainability practices. D) Focusing on suppliers that provide the fastest delivery times to increase business efficiency, with no emphasis on recycling or reuse practices.
B) Evaluating suppliers on environmental, social, and ethical criteria, ensuring supply chain transparency, and prioritizing suppliers that support a circular economy.
What characterizes a linear program in the context of optimization models? A) It is a model where the objective function and all constraints are non-linear functions, and decision variables must be whole numbers. B) It is an optimization model where both the objective function and all constraints are linear functions, and decision variables can take on fractional values. C) It is a model used exclusively for solving complex logistical problems in supply chain management, with constraints that are always quadratic. D) It is a type of optimization model where the objective function is linear, but the constraints are non-linear, and decision variables are restricted to binary values.
B) It is an optimization model where both the objective function and all constraints are linear functions, and decision variables can take on fractional values.
How does implementing small batch production in Lean methodology typically benefit a manufacturing process? A) It significantly increases the variety of products available to customers. B) It leads to a reduction in lead time and improvement in product quality. C) It allows for the employment of more workers to increase production. D) It focuses on minimizing the utilization of machinery and equipment.
B) It leads to a reduction in lead time and improvement in product quality.
Based on the information provided in the video, how much water does one glass of beer consume? A) One glass of beer consumes 140 liters of water. B) One glass of beer consumes 75 liters of water. C) One glass of beer consumes 10 liters of water. D) One glass of beer consumes 200 liters of water.
B) One glass of beer consumes 75 liters of water.
In the context of Lean methodology, how is employee empowerment typically manifested? A) By strictly adhering to top-down management decisions without employee input. B) Through providing employees with the authority and resources to make decisions. C) By limiting employee involvement to their specific operational tasks only. D) Through the automation of decision-making processes, reducing the need for employee input.
B) Through providing employees with the authority and resources to make decisions.
What is the core principle of Lean management practices? A)To increase the workforce for better productivity. B) To reduce and eliminate non-value adding activities and waste. C) To focus primarily on increasing the use of technology in operations. D) To expand the range of products and services offered by a company.
B) To reduce and eliminate non-value adding activities and waste.
The "Precautionary Principle" states that: A) Companies should be cautious and aim to achieve zero carbon emissions by 2050. B) Where there are threats or serious or irreversible damage, a lack of full scientific certainty shall not be used to postpone cost-effective measures to prevent environmental degradation. C) Companies who are causing the highest GHG emission in the developed countries should pay the environmental cost to the developing countries. D) All of the above.
B) Where there are threats or serious or irreversible damage, a lack of full scientific certainty shall not be used to postpone cost-effective measures to prevent environmental degradation.
What critical challenge is associated with entry-level employment in the context of increasing automation?(chapter 20) A. The main challenge is providing enough high-tech jobs for entry-level workers. B. The scarcity of entry-level jobs due to automation handling "easy" tasks, which poses a problem for developing experienced workers who can handle exceptions and override machine errors. C. The challenge is ensuring entry-level workers are only assigned to manual labor tasks. D. The biggest challenge is the overabundance of entry-level positions, leading to a saturated job market.
B. The scarcity of entry-level jobs due to automation handling "easy" tasks, which poses a problem for developing experienced workers who can handle exceptions and override machine errors.
How does BASF utilize digital twin technology in its Ludwigshafen facility?(chapter 18) A. BASF uses digital twins only for visualizing the facility layout without any operational integration. B. They employ a Verbund simulator, a digital mirror of the physical plant, for production planning, capacity adjustments, new investments, and managing disruptions. C. BASF uses digital twin technology exclusively for employee training and safety drills. D. The technology is used by BASF to replace physical production with virtual production.
B. They employ a Verbund simulator, a digital mirror of the physical plant, for production planning, capacity adjustments, new investments, and managing disruptions.
What is the primary difference between direct operations and consolidated operations within the transportation context? (chapter 5) A.Direct operations involve multiple passengers sharing the same vehicle, while consolidated operations involve individual cargo transport. B.Direct operations are similar to a taxi service where cargo is taken directly from origin to destination, whereas consolidated operations are akin to mass transit service with shared transport and potential vehicle changes. C.Consolidated operations are faster than direct operations as they involve direct routes without any stops. D.Direct operations require cargo to change vehicles at a hub terminal, unlike consolidated operations.
B.Direct operations are similar to a taxi service where cargo is taken directly from origin to destination, whereas consolidated operations are akin to mass transit service with shared transport and potential vehicle changes.
What distinct advantage do humans have over machines in the context of supply chain operations? (chapter 16) A.Humans are more efficient in algorithmic execution and error-free operations. B.Humans excel in understanding context, demonstrating flexibility, creativity, and critical thinking, which are vital in supply chain management. C.Machines surpass humans in all aspects of supply chain operations. D.Humans are superior in data processing and handling digital tasks within supply chain operations.
B.Humans excel in understanding context, demonstrating flexibility, creativity, and critical thinking, which are vital in supply chain management.
Which three global trends are shaping the future of supply chains and their workforce? (chapter 17) A.Automation advancements, reduction in global trade barriers, and increased use of artificial intelligence. B.Rising levels of volatility, uncertainty, complexity, and ambiguity (VUCA), demographic and geographic shifts in the world population, and the expansion of information technologies. C.Shifts in global economic power, advancements in renewable energy, and changes in consumer behavior. D.Development of global logistics networks, workforce reduction due to automation, and an increased focus on sustainability.
B.Rising levels of volatility, uncertainty, complexity, and ambiguity (VUCA), demographic and geographic shifts in the world population, and the expansion of information technologies.
Why are soft skills considered important in supply chain management? (chapter 16) A.Soft skills are generally less important than technical skills in managing supply chains. B.Soft skills, such as resilience, critical thinking, and the ability to understand context, play a crucial role in adapting to changes and solving problems in supply chain operations. C.The trend is shifting towards replacing soft skills with advanced software algorithms for increased efficiency. D.Soft skills are relevant only in the customer service segment of supply chain management.
B.Soft skills, such as resilience, critical thinking, and the ability to understand context, play a crucial role in adapting to changes and solving problems in supply chain operations.
What are some key challenges and considerations in long-distance supply chains involving multimodal transportation, as illustrated by the shipment of a T-shirt? (chapter 5) A.The simplicity of operations and the minimal need for skilled operators in multimodal transportation. B.The challenges include managing numerous vehicles and skilled operators, dealing with delays due to inspections and audits, and the economic considerations of freight vehicle operations. C.The primary challenge is the high speed of delivery and the avoidance of any form of inspection or delay. D.The focus is solely on using the most advanced vehicles, regardless of their capacity or operational costs.
B.The challenges include managing numerous vehicles and skilled operators, dealing with delays due to inspections and audits, and the economic considerations of freight vehicle operations.
When talking about supply chain disruption, what is the implication of describing links in a supply chain as 'keystones'? (chapter 6) A.It suggests that only the most significant links in a supply chain, like transportation and major suppliers, are crucial. B.The statement implies that almost every link in a supply chain is vital, and the disruption of any link can impact the entire system. C.It means that supply chains are generally robust and can function effectively even if some links are weak or disrupted. D.'Keystones' here refers to the technological aspects of supply chains, indicating their importance over other elements.
B.The statement implies that almost every link in a supply chain is vital, and the disruption of any link can impact the entire system.
What are the dual impacts of global trends on the workforce within supply chains? (chapter 17) A.These trends will lead to complete automation of the workforce, eliminating the need for human intervention in supply chains. B.The trends will result in some workforce displacement by technology, while also creating new tasks, roles, and jobs, and sustaining the need for human roles in design, management, and execution of supply chain activities. C.All supply chain tasks will be overtaken by information technologies, making human workers redundant. D.The trends will primarily increase manual labor jobs and reduce the demand for technological skills in supply chains.
B.The trends will result in some workforce displacement by technology, while also creating new tasks, roles, and jobs, and sustaining the need for human roles in design, management, and execution of supply chain activities.
What is a major limitation of many current deep learning AI systems? (chapter 18) A.They are too transparent and provide too much information about their decision-making process. B.They act like 'black boxes', offering answers without explanations for their decisions. C.The main issue is their inability to process large amounts of data efficiently. D.These systems are overly reliant on human input for decision-making.
B.They act like 'black boxes', offering answers without explanations for their decisions.
Single Piece Flow
Batch size of one Ideally, everything in a lean process is produced one piece at a time
What does the term "hidden factory" refer to in the context of Lean management? A) A secret manufacturing facility used for developing new products. B) Overhead - "necessary but non-value added activities" C) A strategy for outsourcing production to reduce visible operational costs. D) The use of covert methods for improving efficiency without employee knowledge.
C) A strategy for outsourcing production to reduce visible operational costs.
Which of the following best describes "value-added" in the context of Lean management? A) Activities that do not directly add value and are considered waste. B) Processes that are non-value added, but necessary and hard to eliminate, such as planning and quality control. C) Actions that directly add to the value of a product or service from the perspective of the customer. D) Expanding the range of products and services to meet new market demands.
C) Actions that directly add to the value of a product or service from the perspective of the customer.
How does the circular economy concept contribute to reducing waste in supply chains? A) By encouraging disposable product designs B) By maximizing single-use plastic packaging. C) By promoting resource recovery, recycling, and reusing materials. D) By prioritizing rapid product turnover.
C) By promoting resource recovery, recycling, and reusing materials.
How does the circular economy concept contribute to reducing waste in supply chains? A) By encouraging disposable product designs. B) By maximizing single-use plastic packaging. C) By promoting resource recovery, recycling, and reusing materials. D) By prioritizing rapid product turnover.
C) By promoting resource recovery, recycling, and reusing materials.
This refers to the ability of a carrier to move a specific kind of freight A) Security B) Quantity C) Capability D) Transit
C) Capability
Which of the following is an example of a Scope 3 emission in supply chain sustainability? A) Emissions from company-owned vehicles. B) Emissions from on-site manufacturing processes. C) Emissions from employee commuting. D) Emissions from electricity consumption.
C) Emissions from employee commuting.
Which of the following is NOT one of the 8 types of 'Muda' (waste) identified in Lean methodology?" A) Overproduction B) Excess Inventory C) Employee Empowerment D) Unnecessary Transportation
C) Employee Empowerment
Which of the following commodities would be most likely to be shipped on an air carrier? A) Low-value finished goods B) Commodities in high volume C) High-value and time-sensitive goods D) Raw materials
C) High-value and time-sensitive goods
Which of the following best describes the concept of social sustainability according to UN Global Impact? A) Focusing solely on the environmental impact of business operations. B) Prioritizing financial growth over social issues within a company. C) Identifying and managing business impacts on people, both positive and negative, and maintaining quality relationships with stakeholders. D) Limiting the scope of business to social enterprises and non-profit organizations.
C) Identifying and managing business impacts on people, both positive and negative, and maintaining quality relationships with stakeholders.
What is the primary purpose of using models in organizations, especially in supply chain management? A) To create exact replicas of real-world scenarios without any simplifications. B) To provide entertainment and engagement for employees. C) To develop a better understanding of practical situations by representing them in a simplified form and predicting outcomes based on inputs. D) To replace human decision-making entirely with automated processes.
C) To develop a better understanding of practical situations by representing them in a simplified form and predicting outcomes based on inputs.
What is the purpose of an Andon system in Lean manufacturing? A) To automate the entire production process for efficiency. B) To provide real-time data analysis for market forecasting. C) To signal problems or irregularities in the production line. D) To track employee performance and productivity metrics.
C) To signal problems or irregularities in the production line.
What is a digital twin and how is it used in the context of supply chains and business environments? (chapter 18) A. A digital twin is a basic computer model used solely for visual representation of physical assets. B. It is an advanced AI system that replaces the need for physical assets in supply chains. C. A digital twin is a detailed, digital replica of a physical system, continuously updated with real data, used for operational, performance improvement, and strategic purposes. D. A digital twin is a static digital model used for marketing purposes and has no operational relevance.
C. A digital twin is a detailed, digital replica of a physical system, continuously updated with real data, used for operational, performance improvement, and strategic purposes.
What skills are increasingly important for supply chain workforces in a world of growing uncertainty and automation?(chapter 19) A. Skills focused solely on manual labor and routine tasks. B. Primarily technical skills related to machine operation and maintenance. C. Skills such as monitoring, critical thinking, judgment, decision-making, and the ability to respond to unforeseen problems. D. Skills limited to basic computer literacy and data entry.
C. Skills such as monitoring, critical thinking, judgment, decision-making, and the ability to respond to unforeseen problems.
What are the complexities and challenges in assessing the sustainability of products throughout their supply chain, particularly in terms of carbon footprint? (chapter 6) A.Sustainability assessment is straightforward, focusing only on the final product without considering the supply chain. B.The main challenge is limited to the disposal and recycling of end-of-life products. C.Assessing sustainability involves understanding the entire life cycle, including raw material sourcing, production, consumer use, and disposal, with complexities like the carbon footprint of local versus long-distance sourcing. D.The only significant factor in sustainability is the efficiency of the product during consumer use, such as fuel or electricity consumption.
C.Assessing sustainability involves understanding the entire life cycle, including raw material sourcing, production, consumer use, and disposal, with complexities like the carbon footprint of local versus long-distance sourcing.
How can government actions impact supply chains? (chapter 10) A.Government actions, such as trade regulations and tariffs, simplify the economic logic of network design and reduce volatility. B.Governments have no significant impact on supply chains as they are primarily driven by market forces and corporate strategies. C.Government interventions like trade regulations, tariffs, and trade sanctions can complicate and add volatility to supply chain network design, as seen in the US-China trade tensions. D.The only significant impact of government actions on supply chains is through the imposition of trade sanctions on countries like Russia and Iran.
C.Government interventions like trade regulations, tariffs, and trade sanctions can complicate and add volatility to supply chain network design, as seen in the US-China trade tensions.
In the Supply Chain in the News article discussed in class, the process of pumping liquefied carbon gas into the ground to reduce atmospheric carbon levels and mitigate climate change is known as ___________.
Carbon Capture and Sequestration | CCUS
Algebraic model
Cost accounting indicates that the cost to make a product is $40 Marketing believes that the relationship between demand and price is as follows: Demand = 800 - 5*Price Profits = (800-5*Price)*(Price-$40) = 800Price - $32,000 - 5Price^2 +200Price = -5Price^2 + 1,000Price - $32,000 Maximize -5Price^2 + 1,000Price - $32,000 Subject to Price >= 0
8) An advantage of Rail versus the other modes of freight transportation is... A) Rail can efficiently transport very large volumes over long distances B) Rail is 3.5 times more fuel efficient than trucks C) Rail has very low variable cost. D) All of the Above
D) All of the Above
Which of the following is a service characteristic of transportation? A) Capability B) Transit Time C) Reliability D) All of the Above
D) All of the Above
From a planning perspective, what support activities does a TMS include? A) Scheduling B) Carrier selection C) Routing D) All of these are correct
D) All of these are correct
How did "Frito Lay" reduce its carbon footprint? A) Used different mode of transportation. B) Changed packaging to eco-friendly packaging. C) Started buying potatoes from local farmers. D) Changed the specifications of buying potatoes to require less humidity in the potatoes.
D) Changed the specifications of buying potatoes to require less humidity in the potatoes.
Which of the following strategies is NOT a component of a sustainable supply chain in the context of logistics and distribution? A) Consolidating shipments, optimizing delivery routes, and selecting transportation modes that minimize greenhouse gas emissions. B) Implementing advanced technologies for efficient inventory management and reducing warehouse space to minimize excess stock and waste. C) Managing product returns, repairs, and recycling effectively to decrease the amount of waste sent to landfills. D) Prioritizing expedited shipping for all products regardless of the increased fuel consumption and greenhouse gas emissions.
D) Prioritizing expedited shipping for all products regardless of the increased fuel consumption and greenhouse gas emissions.
Lean production originated at A) Ford B) General Motors C) General Foods D) Toyota
D) Toyota
8 lean manufacturing mudas
D- defects O- overproduction W- waiting N- non-utilized potential T- transport I- inventory M- motion E- extra processing
In the context of supply chain management, what are the key challenges faced by companies due to the growing complexity and rapid changes in the environment? (chapter 11) A.The main challenge is to maintain a stable supply chain unaffected by external factors like geopolitical changes or societal trends. B.The focus is primarily on internal organizational efficiency, with minimal impact from external market dynamics. C.Companies face challenges in adapting to customers' predictable ordering patterns and navigating stable geopolitical landscapes. D.Companies must manage unpredictable customer order patterns and address issues such as geopolitical shifts, disruptive events, societal demands, cost pressures, and variable demand.
D.Companies must manage unpredictable customer order patterns and address issues such as geopolitical shifts, disruptive events, societal demands, cost pressures, and variable demand.
Which of the following are NOT a strategy companies use to increase supply chain resiliency? (chapter 13) A.Redundancy B.Flexibility Through Standardization C.Flexibility Through Collaboration D.Concentrating procurement with a single supplier to streamline purchasing processes.
D.Concentrating procurement with a single supplier to streamline purchasing processes.
10) In the Supply Chain in the News article discussed in class, the research found a link between _________ risk in a company's supply chain and that company's future stock returns.
ESG- Environmental, social, and corporate governance
Rail
Efficiently transport very large volumes over long distances Reported that railroads are 3.5 times more fuel efficient than trucks High fixed investment -Equipment is expensive -Lay tracks -Terminals need facilities for lifting containers off rail cars Cost per mile is low -Far less human resource requirements compared to truck -Fuel costs very low Overall: High fixed, low variable costs
Goal programming
Excel also enables trying to find values for decision variables so that objective function equals a specified value
Pipeline
Highest fixed cost and lowest variable cost of all modes Unique transportation mode •Can always operate, No emissions Products hauled: -Oil and oil products -Natural gas -Coal and coal products -Chemicals
In the article discussed in class about alternative energy for trucking, the types of alternative energy mentioned were Electric-Battery and _____________.
Hydrogen Power Vehicles
Water
Internal Water Carriers Great Lakes Carriers Coastal Carriers Intercostal Carriers High fixed costs: Terminals can be expensive Ships can be expensive Very low variable costs: Huge volumes Fuel-efficient
In the supply chain news article discussed in class, when production came to a screeching halt at 14 Toyota assembly plants, it highlighted a significant issue with the ___________ principle, which is a cornerstone of the Toyota Production System (TPS).
Just in Time/JIT
Lean
Lean is a set of management practices to improve efficiency and effectiveness by eliminating waste. The core principle is to reduce and eliminate non-value adding activities and waste. Often referred to as the Toyota Production System (TPS)
Air
Least utilized, 1% of intercity ton miles Fastest of all the modes Most products air-shipped have high value, high priority, or extreme "perishability" Medium fixed costs: Main expense is aircraft Do need specialized handling systems Airways and airports maintained by government Very high variable costs: Fuel Labor costs for in-flight and ground crews
Trucking
Most popular/used world-wide Accessibility and versatility -Can get some type of road vehicle to most places -Different trucks for different purposes Relatively small fixed investment -Don't need special terminal facilities -Operated on publicly financed and maintained roads Cost per mile can be high -need a tractor (sometimes called a power unit) and fuel -need a driver for each move Overall: Low fixed, high variable costs
Constraints
Number of pounds of steel consumed in production plan can't exceed number available ("Less-than constraint") Number of nurses scheduled must be at least as many as number needed ("Greater-than constraint") Inventory on hand plus production, minus orders filled equals final inventory ("Equal-to constraint")
Triple bottom line
PEOPLE: SELECTION OF SUPPLIER, EMPLOYEES WELL BEING PLANET: GHG EMISSION FROM SUPPLY CHAIN PROFIT : MINIMIZE COSTS
setup/changeover
Preparing the process to do something different (like make a different product)
Service Components of freight transportation
Transit time: Quoted time from pickup of goods to destination -6 days by rail from Chicago to Long Beach -3 days by truck from Chicago to Long Beach Reliability: Consistency of transit times -Sometimes it is 3 days by truck from Chicago to Long Beach -Sometimes it is 4 days... Accessibility: Ability of a carrier to move freight between a specific origin and destination Capability: Ability of a carrier to move specific kinds of freight/meet specific requirements Security: Safety of goods in transit
Which of the options listed below could potentially serve as a constraint in a linear programming problem? a. "5" x"-7" y≤" 8" b. "1.5" x"+2.25" x^2 = 120 c. 3 xy+ 5 x /y ≥ 22 d. None of the above
a. "5" x"-7" y≤" 8"
Let's consider the problem of maximizing profits by setting prices, as discussed in class. Suppose the demand curve is now represented by the equation: Demand = 700 - 5 * Price. What would be the optimal price in this scenario? a. $90 b. $110 c. $80 d. $100
a. $90
Which of the following statements does not accurately describe the model? a. A model is a simplified representation of a situation or problem b. A model takes inputs and then randomly generates predicted outputs. c. Organizations use models to develop a better understanding of a practical situation d. A model takes inputs and then produces predicted outputs
b. A model takes inputs and then randomly generates predicted outputs.
Which of the following dimensions are typically considered in the Triple Bottom Line concept? a. Profit, production, and planning. b. People, planet, and profit. c. Purchasing, packaging, and pricing. d. Politics, products, and partnerships.
b. People, planet, and profit.
............, ................, and ............. Are the three main components of an optimization model. a. Decision variables, Objective function, feasible solution b. Decision variables, feasible solution, constraints c. Decision variables, objective function, constraints d. Objective function, constraints, optimal solution
c. Decision variables, objective function, constraints
Intermodal
combination of transportation modes
Let's consider the problem of maximizing profits by setting prices, as discussed in class. Suppose the demand curve is now represented by the equation: Demand = 800 - 7 * Price. What would be the optimal price in this scenario? a. $67.14 b. $97.14 c. $87.14 d. $77.14
d. $77.14
Which of the following analytical tools is the most suitable description for this sentence? "create virtual representations of real-world scenarios and allow organizations to test different scenarios and make informed decisions to improve supply chain performance." a. Optimization models b. Simulation models c. Data visualization d. Visual Analytics
d. Visual Analytics
In the supply chain news article discussed in class, it was stated that a recent study found that 73% of consumers believe that more parcels are going missing, indicating a rise in___________ , a problem that the new UPS solution aims to address.
porch piracy/parcel theft
Pull Production (Toyota calls this Kanban)
• Worker at Station 2 produces only enough to meet demand. Withdraws necessary material from Station 1 as needed. • Worker at Station 1 produces whatever is needed to satisfy demand from Station 2. •All pull systems work like this.
Classification of logistics providers
•1PL: Business that handles all its own logistics in-house •2PL: Provides only shipping and transportation •3PL: Provides inbound and outbound transportation and warehousing •4PL: Manages and oversees supply chain and contracts with other companies to provide logistics services •5PL: Contracts with and overseas multiple 3PLs to create a large supply network
model
•A model is a simplified representation of a situation or problem •Organizations use models to develop a better understanding of a practical situation •In general, a model takes inputs and then produces predicted outputs
Pull-replenishment
•In between the stations in a process is small a "buffer" stock. •The amount in the buffer stock is enough to satisfy demand from worker at Station 2, uninterrupted. •"Signal to start" = ROP (reorder level) in buffer •Signals move downstream to upstream, the reverse of a push process
Push production
•Worker at Station 1 produces according to a schedule: pushes work to Station 2. (Schedules created by MRP system.) • Worker at Station 2 also has a schedule. Schedule is often invalid or obsolete because Station 1 is behind schedule or Station 2 is busy processing other work; also, the schedule ignores "interruptions"