Chapter 15 - Supply Chain Management
what are the two essential features of e-commerce?
"front end" website and "back end" order fulfillment
What elements should a company consider when developing a supply chain code of ethics?
- Environmental issues - Customer, supplier, and company behaviors - Human relations and recruitment policies
What are the different ways that companies use electronic technology in their commercial transactions for e-Business?
- Internet buying and selling. - Electronic tracking of shipments. - Email communication internal and external.
In what ways can ERP (Enterprise Resource Planning) software effectively assist supply chain managers?
- Inventory replenishing - Production tracking - Transportation managing - Demand planning
To make a determination as to the appropriate disposition of returned items, what must be done?
- Items sorted - Directed to the appropriate destination - Items inspected
Which of the following challenges are obstacles to establishing partnerships with suppliers?
- Many benefits from the partnership accrue to the buyer. - The cultures of the buyer and supplier might conflict. - Suppliers may need to increase their investment in equipment.
Which of the following characteristics are advantages that RFID tags have over bar codes?
- Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually. - RFID tags do not require a line of sight to scan -RFID tags contain more detailed information than bar codes.
What are the advantages of centralized purchasing?
- Specialized agents - Lower prices - Better service
What are the advantages of decentralized purchasing?
- able to better respond to differing local needs - quicker response - save on transportation costs - goodwill in the community
what is the supplier relationship like when the vendor is viewed as an adversary?
-cost is the primary driver and quality inspection is performed by buyer -there are many suppliers who are pitted against one another
what are some of the many ways that global supply chains are more complex than purely domestic supply chains?
-currency fluctuations -cultural and language differences -increased transportation costs and lead times
products are sometimes returned to companies or to third-party handlers for which reasons?
-defective items or parts replaced in the field -unsold or obsolete products -obsolete or recalled items
what are the various functions of traffic management
-ensure compliance with government regulations -monitor external factors which might cause potential delays -make decisions on shipping methods and times
which of the following factors contribute to the inventory bullwhip effect?
-forecast inaccuracies -order batching to save on costs -overreaction to stockouts
what are the main factors contributing to supply chain success?
-integration of all aspects of the supply chain viewing it as a system -development and maintenance of effective supplier relationships -collaboration and joint planning across the supply chain members
what are some of the potential downsides of outsourcing?
-language and cultural differences -increased transportation costs -loss of jobs
the five basic components of supply chain management are what?
-logistics -supply management -procurement -strategy -demand management
what is the supplier relationship like when the vendor is viewed as an partner?
-one or few number of suppliers -price is moderately important but flexibility is very important -openness and sharing of strategic ad tactical information readily occurs
the back end of e-commerce, order fulfillment, involves what activities?
-order processing and billing -packing, shipping, and delivering -warehousing and inventory management
what are the main factors involved in choosing a supplier?
-quality and quality assurance -price -reputation and financial stability -flexibility and lead times
what are some ways that companies can avoid product returns?
-quality assurance to minimize defective products -improved product design for customer satisfaction purposes AND MAYBE -monitoring forecasts during promotional programs to avoid unsold products
at $100 billion a year in value, us companies want to recover value from returned products instead of discarding them. what are some of the ways this can be accomplished?
-repairing defective products to resell as reconditioned -recycling the materials of returned products -disassembling obsolete parts and harvesting for re-use
supply chains make use of various forms of facilities. select all the examples of facilities from the list below
-warehouses -retail outlets -distribution centers -factories
Put the main steps of the purchasing cycle in order from 1 to 5 with 1 being the first step and 5 being the last.
1. Receive the requisition 2. Select a supplier 3. Place an order 4. Monitor the order 5. Receive the order
put the production control logistical steps in sequential order with 1 being the start of the process and 6 being the last
1. from incoming vehicles to receiving/ storage 2. from storage to point of use 3. from one work center to the next 4. from the last operation to final storage 5. from storage to packing/shipping 6. from shipping to outgoing vehicles
What does supply chain visibility require?
Data sharing
True or False: Businesses can eliminate the need for resiliency by managing risk.
False
How are Assemble-to-Order and Make-to-Order different order fulfillment types?
Make-to-Order requires a long time to manufacture Assemble-to-Order is relatively short using in-stock components.
which of the following best describes the term Logistics?
Managing and coordinating the movement of materials, services, cash and information in a supply chain
Who controls logistics in a closed-loop supply chain?
Manufacturer
Which functional group generates most of the purchase orders which procurement then processes?
Operations
Which of the following activities in the supply chain is an operational responsibility?
Order fulfillment
Which step of the SCOR model involves the development of a strategy for managind the resources that are used to meet customer demand?
Plan
Match these flows with their descriptions.
Product and service flow - movement of goods or services from suppliers to customers Information flow - sharing forecast and sales data, transmitting orders, tracking shipments. Financial flow - Involves credit terms, payments, and consignment and title ownership arrangements.
Some of the duties of ____________ are obtaining goods and services that meet or exceed operations requirements in a timely and cost-effective manner, and managing suppliers.
Purchasing
what is meant by the supply chain management practice of measuring ROI along the supply chain?
ROI stands for return on investment and is a financial basis for decision making, e.g. outsourcing
What does the acronym RFID stand for?
Radio Frequency Identification
Select the best definition of inventory velocity.
The rate at which goods move through a supply chain.
what is meant by the term reverse logistics?
The return of goods from customers The process of physically retrieving and transporting returned items back to the company or a third-party handler.
True or false: Purchasing agents should be concerned about the perception of wrongdoing when conducting business on behalf of their employer even when they have done nothing unethical.
True
Select the best definition of strategic partnering.
Two or more business organizations with complementary products or services join so that each may realize a strategic benefit.
A supply chain is alternatively referred to by what name?
Value chain
all of the following are current trends in supply chain management except which?
adopting automated assembly lines
A(n) _________ supply chain has flexibility to respond to unpredictable changes or circumstances.
agile
what is strategic sourcing in supply chain management?
analyzing the procurement process to lower costs by reducing waste, increase profits, reduce risks and improve performance
a top management responsibility with respect to supply chains is the distribution strategy. what does this area of responsibility entail?
deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired
a top management strategic responsibility with respect to supply chains is network configuration. what does this area of responsibility entail?
determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers
one approach to reducing lead times for customer is to ship direct from the factory to the end user. reducing one or more steps in the supply chain is known as what?
disintermediation
what is the purpose of an RFID tag?
enables identification of goods in a supply chain using radio waves
what is the difference between engineer-to-order and make-to-order?
engineer to order requires more customization and make to order is based upon a standard design with some changes
the activities that supply chain managers are involved with planning and coordinating are all of the following except which?
financial accounting
all of the following are true about strategic sourcing except which?
focuses on purchase price instead of total cost
an important aspect of supply chain management is flow management. what are the three types of flow?
goods/services flow, information flow, financial flow
the ___ the inventory velocity, the ___ the holding costs
greater/lower
An alternative to extra _________ is to have backup suppliers for critical items.
inventory
all of the following are support items usually required to perform logistics operations except which?
marketing brochures
often members of a supply chain have conflicting objectives which can be a barrier to effective supply chain integration. which of the following is an example of this?
one company insists on frequent low volume deliveries from a supplier, transferring inventory holding costs to the vendor
what is traffic management in the context of supply chain management?
overseeing the shipment of incoming and outgoing goods
in evaluating shipping alternatives, operation using a low-cost strategy choose ___ methods, while operations using a responsive strategy more often opt for ___, higher cost carriers
slower/quicker
Firms are encouraged to adopt a ____________ ____________ to their supply chains where they make decisions that are optimal for the supply chain as a whole.
systems approach
when a buyer certifies a supplier, what does this mean?
the buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods
select the best definition of logistics
the part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information
select the best definition of supply chain
the sequence of organizations-their facilities, functions, and activities- that are involved in producing and delivering a product or service
what is the best definition of supply chain management?
the strategic coordination of business functions within and throughout an organizations supply chain to integrate supply and demand
which of the following best describes the two parts of the value chain- the supply and demand components?
the supply component starts at raw material and ends in the organization. the demand component is from delivery of output to the final customer
what is a broad definition of e-business?
the use of electronic technology to facilitate business transactions
why are supplier audits conducted periodically by the buyer?
to keep current on vendor capabilities, quality, performance, problems and their resolutions
sometimes if a buyer does not want to develop its own supplier certification program, it will accept standard industry certifications such as ISO 9000
true
select the best definition of strategic planning
two of more business organizations with complementary products or services join so that each may realize a strategic benefit
select the best definition of supply chain visibility
when a major trading partner can connect to any part of its supply chain to access data on inventory, shipment status, etc.
what is the definition of a closed-loop supply chain?
when a manufacturer controls both the forward and reverse logistics
which of the below is an example of strategic partnering?
when a supplier agrees to hold inventory for the buyer in exchange for a long term contract
For manufacturing companies approximately what percentage of finished goods is procured in the form of purchased parts and materials?
60%
For wholesalers and retailers what approximate percentage of finished goods is procured in the form of purchased inventories?
90%
What is the difference between centralized and decentralized purchasing?
Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately.
