372 final?
How much does security cost PER VESSEL?
$36,754.46
Statistically, there's only a _____% chance your vessel will be involved in a pirate accident
0.167
2 Process Views of a Supply Chain
1. Cycle View: Processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of the supply chain 2. Push/Pull view: Processes in a supply chain are divided into two categories, depending on whether they are executed in response to a customer order or in anticipation of customer orders. Pull processes are initiated by customer order, whereas push processes are initiated and performed in anticipation of customer orders.
Decision Phases in a supply chain
1. Supply chain strategy or design - how to structure the supply chain over the next several years 2. Supply chain planning - decisions over the next quarter or year 3. Supply chain operation - daily or weekly operational decisions
How is Strategic Fit Achieved?
1. Understanding the customer and supply chain uncertainty -quantitiy of product needed in each lot -response time customers will tolerate -variety of products needed -service level required -price of the product -desired rate of innovation in the product 2. Understanding the supply chain capabilities -how does firm best meet demand? -respond to wide ranges of quantities demanded -meet short lead times -handle a large variety of products -build highly innovative products -meet a high service level -handle supply uncertainty 3. Achieving strategic fit -Ensure that the degree of supply chain responsiveness is consistent with the implied uncertainty -Assign roles to different stages of the supply chain that ensure the appropriate level of responsiveness -Ensure that all functions maintain consistent strategies that support the competitive strategy
How fast does a vessel need to go for a pirate attack to be unsuccessful?
18 knots
More than _____,000 vessels sail thru the Gulf of __________ each year including 12% of the world's petroleum traffic
20; Aden
Truck cargo theft amounts to $____ billion a year in the US
30-35
42) Which of the following statements about push processes is accurate? A) They may also be referred to as speculative processes. B) Execution is initiated in response to customer orders. C) At the time of execution, demand is known with certainty. D) They may also be referred to as reactive processes.
A
49) Zara's supply chain strategy A) results in supply more closely matching customer demand. B) results in longer lead times for store order fulfillment, primarily due to shipping time. C) of purely online sales reduces the costs that they would incur with a brick and mortar store system. D) of high volume but low cost apparel requires production well in advance of the actual selling season for each garment type.
A
5) Which sequence of stages is typical for product flow in a supply chain? A) Supplier → Manufacturer → Distributor B) Retailer → Distributor → Customer C) Manufacturer → Retailer → Distributor D) Supplier → Customer → Retailer
A) Supplier → Manufacturer → Distributor
19) The profitability of a supply chain is impacted primarily by the A) design, planning and operation categories of decisions. B) operation category of decisions. C) design and planning categories of decisions. D) planning and operation categories of decisions.
A) design, planning and operation categories of decisions.
) A supply chain features a constant flow of A) information, product and funds. B) personnel, information, and policies. C) processes, funds, and product. D) product, processes, and support.
A) information, product and funds.
8) Customer value is A) the sum of the supply chain surplus and supply chain cost. B) the remainder after supply chain cost is subtracted from supply chain surplus. C) the remainder after supply chain surplus is subtracted from supply chain cost. D) supply chain profitability minus the supply chain cost.
A) the sum of the supply chain surplus and supply chain cost.
23) The customer order cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.
A.
24) Customer arrival refers to A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.
A.
40) The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. B) it specifies the roles and responsibilities of each member of the supply chain. C) it clearly defines the processes involved and the owners of each process. D) it focuses on processes that are external to the firm.
A.
What does tailoring the supply chain mean?
Achieve strategic fit while serving many customer segments with a variety of products across multiple channels Requires sharing some links in the supply chain with some products, while having separate operations for other links
Supplier Relationship Management (SRM)
All processes that focus on the interface between the firm and its suppliers -source -negotiate -buy -design collaboration -supply collaboration SUPPLIER
What is a supply chain?
All stages involved, directly or indirectly, in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service) includes movement of products from suppliers to manufacturers to distributors and information, funds and products in both direction includes: manufacturers, suppliers, transporters, warehouses, retailers and customers
What company experienced one of their cargo trucks being stolen, resulting in a multi million dollar loss?
Astella
20) The time horizon of the operation phase is typically A) quarterly or yearly. B) weekly or daily. C) monthly or quarterly. D) over the next several years.
B
21) The cycle view of a supply chain holds that A) the processes in a supply chain are divided into 2 categories. B) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages. C) all processes in a supply chain are initiated in response to a customer order. D) all processes in a supply chain are performed in anticipation of customer orders.
B
26) Customer order entry is A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.
B
34) The processes involved in the manufacturing cycle include A) order trigger. B) production scheduling. C) order fulfillment. D) order entry.
B
36) The manufacturing and shipping process in the manufacturing cycle is equivalent to the A) order receiving process in the replenishment cycle. B) order fulfillment process in the replenishment cycle. C) order entry process in the replenishment cycle. D) order trigger process in the replenishment cycle.
B
43) Supply chain macro processes include which of the following? A) Internal Relationship Management (IRM) B) Customer Relationship Management (CRM) C) External Relationship Management (ERM) D) Supply Chain Relationship Management (SCRM)
B
46) Activities involved in the Internal Supply Chain Management (ISCM) macro process include A) marketing. B) order fulfillment. C) sales. D) order management.
B
48) A key supply chain difference between Gateway and Apple is that A) Gateway's stores currently carry a large variety of products made by other manufacturers, while Apple carries only Apple products. B) Apple has always carried product in their stores while at one time Gateway stores carried no inventory. C) Gateway has always used a push system while Apple has always used a pull system. D) Gateway has no suppliers, preferring to make everything in-house, while Apple buys many of their components from suppliers.
B
6) Supply chain surplus involves what two parts? A) Manufacturing cost and selling price B) Customer value and supply chain cost C) Customer value and high quality products D) Reliable transportation and supply chain cost
B) Customer value and supply chain cost
17) A company would decide whether to outsource or perform a supply chain function in-house during the A) planning phase. B) design phase. C) tactical phase. D) operation phase.
B) design phase
14) Walmart's supply chain features clusters of stores around distribution centers, which facilitates A) high transportation costs. B) frequent but inexpensive replenishment at the stores. C) rapid design cycles from their R&D group. D) sharing of information with suppliers.
B) frequent but inexpensive replenishment at the stores.
9) The objective of every supply chain is to A) minimize the overall cost generated. B) maximize the overall value generated. C) minimize the cost to the manufacturer. D) maximize the profit of the manufacturer.
B) maximize the overall value generated.
Each stage in a supply chain is connected through the flow of products, information, and funds. These flows often occur in both directions and are usually managed by A) pricing department. B) one of the stages. C) upper management. D) engineering department.
B) one of the stages.
31) The replenishment cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.
B.
39) The cycle view of the supply chain is useful when considering operational decisions, because A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. B) it specifies the roles and responsibilities of each member of the supply chain. C) processes are identified as either reactive or speculative. D) it focuses on processes that are external to the firm.
B.
Changes Over Product Life Cycle
Beginning stages 1. Demand is very uncertain, and supply may be unpredictable 2. Margins are often high, and time is crucial to gaining sales 3. Product availability is crucial to capturing the market 4. Cost is often a secondary consideration Later stages 1. Demand has become more certain, and supply is predictable 2. Margins are lower as a result of an increase in competitive pressure 3. Price becomes a significant factor in customer choice
25) The objective of the customer arrival process is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
C
32) The processes included in the replenishment cycle include A) order arrival. B) production scheduling. C) retail trigger. D) manufacturing.
C
33) The manufacturing cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.
C
35) The production scheduling process in the manufacturing cycle is similar to the A) order receiving process in the replenishment cycle. B) order fulfillment process in the replenishment cycle. C) order entry process in the replenishment cycle. D) order trigger process in the replenishment cycle.
C
44) Supply chain macro processes include which of the following? A) Internal Relationship Management (IRM) B) External Relationship Management (ERM) C) Supplier Relationship Management (SRM) D) Supply Chain Relationship Management (SCRM)
C
45) Activities involved in the Customer Relationship Management (CRM) macro process include A) planning of internal production and storage. B) order fulfillment. C) marketing. D) supply planning.
C
47) Activities involved in the Supplier Relationship Management (SRM) macro process include A) planning of internal production and storage. B) order fulfillment. C) supplier evaluation and selection. D) order management.
C
15) Which of these statements about Dell's supply chain is best? A) Dell's supply chain surplus was largely driven by their negative shipping model. B) Dell's initial success was largely driven by the ability to accurately forecast what customers wanted and supply those models to retail outlets that carried their computers. C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage. D) Dell's supply chain consists of only two members, Dell and the customer.
C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage.
3) Which set of supply chain flows is correctly described? A) Funds flow only upstream but information flows both upstream and downstream in a supply chain. B) Product flows only downstream and information flows only upstream in a supply chain. C) Information and product both flow upstream and downstream in a supply chain. D) Funds flow both upstream and downstream but product flows only downstream in a supply chain.
C) Information and product both flow upstream and downstream in a supply chain.
10) Retailing in the United States is largely A) push/pull. B) profitable. C) consolidated. D) centralized.
C) consolidated.
13) A key issue facing Toyota is A) developing an Internet marketing system. B) whether to specialize in a particular market. C) design of its global production and distribution network. D) how to implement model changes.
C) design of its global production and distribution network.
12) Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of A) low demand for their service. B) slow inventory turnover compared to industry averages. C) higher labor costs for picking orders. D) poor quality products.
C) higher labor costs for picking orders.
16) The decision phases in a supply chain include A) production scheduling. B) customer relationship management. C) supply chain operation. D) supply chain orientation.
C) supply chain operation.
7) For any supply chain, the source of revenue is generated by A) efficient operations. B) information flows. C) the customer. D) product flows.
C) the customer.
28) Customer order fulfillment refers to A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.
C.
38) The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between A) customer and retailer. B) retailer and distributor. C) distributor and manufacturer.
C.
Who do pirates target almost exclusively?
Crew members
cost-responsiveness efficient frontier
Curve showing the lowest possible cost for a given level of responsiveness
____________ is an integral part of the supply chain.
Customer
41) Which of the following statements about pull processes is accurate? A) They may also be referred to as speculative processes. B) Execution is initiated in anticipation of customer orders. C) At the time of execution, demand must be forecast. D) They may also be referred to as reactive processes.
D
50) Toyota's global complementation strategy A) calls for plants to be devoted to the production of vehicles for only the local market. B) dictates that parts plants be built to supply all of the needs for each vehicle production plant worldwide. C) requires that a single parts plant, for example, for brakes, export brake components to all of its vehicle assembly plants worldwide. D) mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.
D
Which statement about supply chains is best? A) New product development is not a supply chain function. B) If a supplier uses a shipping company to send product to a customer, the shipping company is technically not a supply chain member. C) Funds in a supply chain flow upstream only. D) Flows in a supply chain may be managed by an intermediary.
D) Flows in a supply chain may be managed by an intermediary.
18) The supply chain strategy category would include a decision about A) which items in the warehouse will be shipped to Malibu. B) which warehouse will supply the Surf City location. C) when the order should be shipped to the little old lady from Pasadena. D) how large the warehouse in Kokomo should be.
D) how large the warehouse in Kokomo should be.
11) For any supply chain, A) management rests solely in the hands of the manufacturer. B) management rests solely in the hands of the distributor. C) if each member focuses on profitability, the overall supply chain profit will be maximized. D) there is only one source of revenue, the customer.
D) there is only one source of revenue, the customer.
22) The push/pull view of a supply chain holds that A) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages. B) all processes in a supply chain are initiated in response to a customer order. C) all responses in a supply chain are performed in anticipation of customer orders. D) the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.
D.
27) The objective of customer order entry is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
D.
30) Customer order receiving is A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocates product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.
D.
37) The procurement cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.
D.
Define Competitive Strategy
Defines the set of customer needs a firm seeks to satisfy through its products and services
Cost of Ransoms
Delivery of ransom by an aircraft; damage caused to the ship; rate of negotiations; consultant and lawyer fees; psychological shock
Who controls the Suez Canal?
Egypt
Define Supply Chain Management
Encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. Essentially, it integrates supply and demand management within and across companies management of supply chain assets and product, information and fund flows to grow the total supply chain surplus
What's the problem with increasing your speed to outrun the pirates?
Increase in cost of fuel, environmental pollution
interfunctional scope
Maximize Company Profit -Functional strategies are developed to align with one another and the competitive strategy
Which countries are particularly problematic when it comes to cargo theft?
Mexico, Brazil and South Africa
intraoperation scope
Minimize Local Cost View -Each stage of the supply chain devises strategy independently
Intrafunctional Scope
Minimizing Total Functional Cost -Firms align all operations within a function
________________ is an illegal act of violence or detention on the high seas against another ship or persons on board
Piracy
Cycle View of Supply Chain Processes
Procurement cycle - supplier Manufacturing Cycle- manufacturer Replenishment Cycle- Retailer Customer Order Cycle- customer
What drug was of particular significance on the truck that had been stolen from Astella?
Prograf
How long, on average, do pirates hold crew members hostage?
Six months
What are the motives of these pirates?
Socio-economic issues in Somalia; extreme poverty, volatile politics; driven by economic and political complications
Push/Pull View of Supply Chain Processes
Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand pull: execution is initiated in response to customer order / reactive push: execution is initiated in anticipation of customer orders / speculative push/pull boundary separated push from pull processes
T/F - Private armed security increased in 2011 as a deterrent against pirate attacks.
TRUE
T/F Customer is the only source of revenue in the supply chain
TRUE
29) The objective of customer order fulfillment is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
a
Customer Relationship Management )CRM)
all processes at the interface between the firm and its customers -market -price -sell -call center -order management
Internal Supply Chain Management (ISCM)
all processes that are internal to the firm -strategic planning -demand planning -supply planning -fulfillment -field service
Strategic fit means
competitive and supply chain strategies have aligned goals
Supply Chain Strategy or Design
decisions about the configuration of the supply chain, allocation of resources, and what processes each stage will perform -outsource supply chain functions -locations and capacities of facilities - products to be made or stored at various locations -modes of transportation -information systems must support strategic objectives LONGTERM EXPENSIVE
define supply chain strategy
determines the nature of material procurement, transportation of materials, manufacture of product or creation of service, distribution or product
What is the objective of a supply chain?
maximize overall value generated
Define Logistics Management
part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. this is a part of supply chain management
The most highly sought after shipments are:
pharmaceuticals, consumer electronics, apparel, and food
Implied demand uncertainty
resulting uncertainty for the supply chain given the portion of the demand the supply chain must handle and attributes the customer desires
Supply chain planning
set of policies that govern short term operations fixed by the supply configuration from strategic phase goal is to maximize supply chain surplus given established constraints starts w/ a forecast of demand in the coming year -which markets will be supplied from which locations -planned buildup of inventories -subcontracting -inventory policies -timing and size of market promotions must consider demand uncertainty, exchange rates, competition over the time horizon in planning decision
Define marketing and sales strategy
specifics how the market will be segmented and product positioned, priced and promoted
Define product development strategy
specifics the portfolio of new products that the company will try to develop
Customer value - supply chain cost =
supply chain surplus
Scope of strategic fit
the functions within the firm and stages across the supply chain that devise an integrated strategy with an aligned objective
supply chain efficiency
the inverse to the cost of making and delivering the product to the customer
Supply Chain operation
time horizon is weekly or daily decisions regarding individual customer orders supply chain configuration is fixed and planning policies are defined goal is to handle incoming customer orders as effectively as possible allocate orders to inventory or production, set order due dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery schedules, place replenishment orders less uncertain
demand uncertainty
uncertainty of customer demand for a product