Chapter 1- Introduction to Supply Chain and Operations Management

ISM

Institute for Supply Management

t/f: Most organizations function as a part of a larger supply chain.

True (Interdependence)

a term used to describe activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest. For example, corn harvesting takes place upstream of cereal processing, and cereal processing takes place upstream of cereal packaging.

Upstream

T/F: Supply Chain has many cross-functional linkages with Finance, HR, IT, Accounting, Engineering, and Marketing.

True

a supplier that provides products or services directly to a firm.

First-Tier Supplier

What are the three main reasons for why we study Operations and Supply Chain Management?

1. Pervasiveness 2. Interdependence 3. Profitability & Survival

APICS

Association for Operations Management

a term used to describe activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest. For example, sewing a shirt takes place downstream of weaving the fabric, and weaving the fabric takes place downstream of harvesting the cotton.

Downstream

the use of computer and telecommunications technologies to conduct business via electronic transfer of data and documents.

Electronic "e-commerce" Commerce

What are three important trends in Supply Chain/Operations?

Electronic Commerce Increasing Competition and Globalization Relationship Management

the collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services.

Operations Function

the planning, scheduling, and control of the activities that transform inputs into finished goods and services.

Operations Management

a supplier that provides products or services to a firm's first-tier supplier.

Second-Tier Supplier

a network of manufacturers and service providers that work together to create products or services needed by end users. These manufactures and service providers are linked together through physical flows, information flows, and monetary flows.

Supply Chain

the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by a firm or group of firms to develop and run supply chains in the most effective and efficient ways possible.

Supply Chain Management

a framework developed and supported by the Supply Chain Council that seeks to provide standard descriptions of the processes, relationships, and metrics that define supply chain management.

Supply Chain Operations Reference (SCOR) Model

Analyst, Production Manager, Service Manager, Sourcing Manager, Commodity Manager, Supplier Development Manager, International Logistics Manager, and Transportation Manager are all career paths in what field?

Supply Chain/Operations

Manufacturing operations produce a _____________ product.

Tangible

ASQ

The American Society for Quality

CSCMP

The Council of Supply Chain Management Professionals

Service operations produce an ______________ product or service. (ex: banking, consulting, legal, medical services, fast food, etc.)

intangible

Key decisions of manufacturing operations are driven by the ____________ characteristics of the product.

physical

Key decisions of service operations are driven by how we ____________ the customer.

service