SCM 300 Exam 2

15 days

according to the case, how long does it take Zara to design, produce and deliver a new garment and put it on display in its stores worldwide?

the middle east

according to the case, starbucks sources coffee from some of the more unstable regions of the world. which of the following is one of the top three regions from which coffee is sourced?

due to poor IT systems gaining economic transparency from members could difficult

according to the case, which of the following is one the the primary challenges that the starbucks CAFE practices program faces?

cradle to cradel design

according to the lecturer, ecologically intelligent design that considers not only the useful life of the product but also the recovery, disposal and reuse of the materials and component that make up the product is called

meats and fish are put in the back of the store so that customers will see them every time they emerge from the backend of the aisles.

according to the lecturers, which of the following is TRUE in relation to typical supermarket layouts?

quality at the source

according to the lecturers, which of the following is more in line with the Lean Manufacturing philosophy versus the old school American business philosophy?

outsourcing

company contracts an outside firm to perform services, operations, business processes that could be or were previously performed in-house. COULD BE IN SAME COUNTRY!

push system

consumer demand is known and expected. ex: apple store. product innovation = slow, production = static, standardized products

customs house broker

contractor that helps client's goods clear customer in a foreign country. acts as an agent- has to prepare documents, answer questions during inspection.

freight forwarder

contractor that helps companies organize the efficient and effective shipment of goods from one point in the supply chain to another. DO NOT ACTUALLY TRANSPORT THE GOODS. negotiate and arrange for logistics companies to prepare, secure, store, track, move cargo. logistics manager

intellectual property

copyrights, patents, trademarks that protect creative ideas of a company.

forward buying

result of suppliers offering sales. motivates buyers to buy in large quantities to take advantage of low prices. Buying based off of price vs. demand

maintaining close supplier ties, practicing preventative maintenance, practicing quality at the source

reuqirements for successful JIT?Lean manufacturing implementation include which of the following?

percentage of time worker is busy

ro? "p" arrival rate / service rate

incoterms

series of commercial terms, three letters est. by international chamber of commerce (ICC).

methods for controlling bullwhip

- everyday low prices - vendor management inventory - info sharing between buyers and suppliers - strong buyer-supplier relationships - lean manufacturing

risks of external partners

- quality control - intellectual protperty - business practices - loss of strategic flexibility

benefits of external partners

- speed - expertise - resource utilization - focus on core competencies

causes of bullwhip

1. order batching 2. rationing 3. forward buying 4. shortage gaming

eight supply chain processes: 1. development and commercialization 2. relationship 3. flow 4. demand 5. order 6. relationship 7. service 8. returns

1. product ____ 2. supplier ____ management 3. manufacturing ____ management 4. ____ management 5. ____ fulfillment 6. customer ____ management 7. customer ____ management 8. ____ management

collaborative, planning, forecasting, rescheduling

CPFR; forces organizations to discuss opinions and strategies; helps supply chain partners understand how their partners think, believe, values

Third Party Logistics

3PL. contractor that performs one or more logistics functions for their client in an effort to facilitate effective and efficient movement in the supply chain. can NOT BE BUYER OR SELLER OF PRODUCTS BEING MOVED. few boundaries and can do other things that might shy away from logistics.

5541

A supply chain is made up of a retailer, their distributor and the manufacturing facility. the retailer is closest to the customer and the manufacturing facility the fathers. if the retailer needs 5,000 units and the distributor has a 6% shrinkage rate, and the manufacturer produces 4% defects, in total, how many items will need to be produced to account for the shrinkage and defect rates?

customers- trade partnership against terrorism

C-TPAT voluntary program developed by US customs and border protection for companies importing goods into US. members give significant amount of detail on goods in exchange for better, faster, less-hassle clearance

custom manufacturing solutions organizations

CMSO organizations that provide data on suppliers in a region or country; able to report on reliability, stability, quality etc.

every day low prices

EDLP a method for controlling the bullwhip effect by offering the same, low prices consistently vs. having sporadic sales

free trade zone

FTZ. a geographic area sanctioned by the government where items are not under the control of custom authorities. goods can be brought in to a country, brought into FTZ and stored, manipulated before being re-exported without ever being inspected or taxed. create incentives for companies to keep their facilities in the country rather than moving into another. some display expensive equipment

just in time

JIT. another name for lean manufacturing

8650

Raymond's clothing company has three warehouses spread throughout the country. the company is considering building one new single warehouse to replace the three, which they plan to close or sell. currently, the company has average inventory level of 5,000 shirts at each warehouse. what average inventory level will be needed to maintain current service level standards if the new warehouse is built and the other three are closed down? use the square root rule

bill of landing

THREE MAIN PURPOSES: 1. contract between shipper and carrier 2. receipt of goods for the shipper 3. acts as certificate of ownership

toyota production system

TPS. another name for lean manufacturing

vendor management inventory

VMI a method for controlling the bullwhip effect in which suppliers are given power/responsibility to control their own inventory.

Vendor Managed Inventory

VMI; retailers allow vendors to monitor in-store inventories, initiate order shipments to the store when things are low and bring the times into the store directly to the shelf; less confusion for the retailer and as a result more accuraccy

contract manufacturers

a company that produces goods on behalf of another organizations

shippers export declaration

a document used by the US government to track all times that exported from the US in order to develop a census of the US exports each year; provides appropriate export license info for the goods being shipped

postponement

a mixture of push and pull system. ex: subway! food is prepared and ready to go- you get to build your sandwich. push standardized elements then allow customer to pull what can be custom.

the more merchandise a customer is exposed to in an orderly manner, the more they tend to buy

according the the textbook, which of the following best portrays the idea of space productivity?

India

according to lecture, which country has a huge middle class, but a poor highway system that accounts for 2% of all the roads but must carry 40% of the traffic, often at an average speed of about 20 mph?

contract manufacturing companies that assemble electronics items like PCs iPods, Xboxes and other consumer gadgets for big brand name companies like Microsoft and Apple

according to the Xbox story told in lecturer, which of the following best describes the electronic manufacturing services (EMS) industry?

simple products like sweaters in classic colors are manufactured directly by Zara

according to the Zara case, which of the following sternest is FALSE?

retail stores should have shiny floors, bright lights and colorful signage.

according to the textbook, Robert Kahn was on the Wal-Mart board of directors. Which of the following was NOT part of his theories on retail stores?

shortage gaming

according to the textbook, the phenomenon where inaccurate/disorted demand information is created in the supply chain, which in turn causes erratic replenishment orders that do not coincide with final product demand is called...

manufacturer

actually create finished good. retailers then buy the goods and they're responsible for distribution and storage

brick and mortar

all products and services are sold to customers from physical stores

online/etailing

all products/services are sold to customers through an online website

n sub s

average # of customers in the system

t sub l

average # of time customer waits in line

t sub s

average amount of time customer spends in system

N sub l

average number of customers in line

measuring success

best supply chains are - EFFECTIVE (creating and delivering great products and services customers want - EFFICIENT (using minimal resources/eliminating waste) - EVOLVING (adaptable)

manufacturing compliance

business behaviors of a manufacturer associated w following regulations, practices, other requirements that their clients have established

arrival rate

lambda. the number of customers arriving/ unit of time (15 customers arrive per hour)

certificates of origin

certifies that the goods were manufactured in the country specified; important for legal purposes

packing list

descibes all items in box (dimensions and weight) provide location of items in a box or container. PRICES NOT TYPICALLY ON LIST.

order batching

large, infrequent orders from suppliers to catch a deal/discount/good price

culture's imapct on negotiations

equality, trust and friendship, values, business decisions, meeting times, individual rewards, greetings

square root rule: risk pooling

future inventory = present inventory [(sqrt future warehouses) / (sqrt present warehouses)]

customs and regulations

government established custom agencies to control the goods that enter and leave a country (imports and exports). assist in clarifying goods and services according to the government classification system, assessing and collecting the appropriate tariffs, enforcing quotas, aiding issues related to national security, illegal narcotics, commerce control etc.

.242 minutes

in a THREE-server model, how much time does the average customer spend waiting in line?

1.319 minutes

in a TWO-server model, how much time does the average customer spend in the system, from the moment they enter the system until they leave the system?

clicks and calls

in addition to taking orders via company website, some companies will also offer sales via phone

Mattell was ultimately responsible for the recalls because they bought the lead paint for their Chinease manufacturers

in relations to the Mattel case, which of the following is NOT true?

queue

line

channel

line- number of lines available at each step

near-sourcing

location of the manufacturing facility is RELATIVELY CLOSE to the location of the consumer

lean manufacturing

meet consumer demand and desires but w minimal inventory levels and minimal supply chain waste. just a philosophy- no guarantees!

service rate

mew. # of customer helped / unit of time (24 customers are helped per hour)

global profit motivations

most company decisions are related to corporate profit; both revenue and cost issues must be looked at

finitie populations of customers

number of customers is limited. After a customer enters a store the chances/probability of another customer entering decrease.

drop shippers

organization that ties manufacturers and or wholesalers directly to consumers; don't actually possess product just take orders

wholesalers

organizations that purchase goods from manufacturers; purchase an assortment of goods from many manufacturers. ex: retailer would purchase all electronics from single wholesaler instead of going to each manufacturer

business process outsourcing

outsourcing of office activities; accounting, HR, customer service AKA back office

chargebacks

penalties charged by retail organizations to their suppliers/vendors for any number of minor or major supply chain offenses; the goal is to motivate vendor compliance

infrastructure

physical structures and equipment utilized to move goods (roads, railways, ocean ports. make movement of goods possible

shortage gaming

placing orders larger than needed because you expect rationing

obstacles of integration

poor communication, unwillingness to share, lack of trust

balking

potential customer sees the line but never joins because they think it looks too long/slow

manufacturing audits

process where companies examine whether or not their manufacturing contractors are abiding by the legal and agreed upon regulations, business practices and other established manufacturing requirements

bricks and clicks

products can be bought from a physical store or from an online system

maximize value

provide customers the best possible product and service bundle at the lowest possible cost

shrinkage

rate of loss: order size required = actual demand / proportion of acceptable product per order

last mile

refers to the portion of the supply chain between the final inventory holding facility and end consumer; lots of variation

duty drawback

request to refund most of the tariffs paid. done when importing lots of raw materials and then the finished product is also being taxed.

omni-channel retailing

requires companies to have a very strong presence in the many channels they choose to meet customers; being adequate in internet, catalog, etc

supply chain integration

requires coordination and communication with customer. Brings supply chain partners together and coordinated their business processes and helps ease changes

shipping documents

serve three important purposes: 1. transportation (proof that cargo was received, where it came from, where its going) 2. financial (whenever cargo changes hands= crucial part of supply chain process, proof they were received according to terms of sale) 3. international shipments (when goods cross borders, customs check shipping documents to check for legal infractions and assess duties)

phase

single step in the process (application, then registration, then orientation)

validated export license

special export license for items heavily policed by US government (weapons, nuclear, agricultural)

bullwhip effect

stable demand results in an increase in inventory in the upstream supply chain (working backwards. starting at retail --> manufacturing --> distribution --> suppliers)

rationing

suppliers don't have enough inventory that is being demanded so they only send out a fraction to everyone

pull system

system activated by consumer demand. ex: ordering a steak at a restaurant. wait for the order, THEN you create it. products that have options for customization "how i like it/want it"

infinite population of customers

the number of possible customers that may come into the store is very high (or unlimited); when one enters the system the odds of another entering the system are not impacted in any significant matter

currency exchange considerations

time means money; determined by the market, unpredictable. this is why companies choose to manufacture goods in the country where the products will be sold

commercial invoice

vital document that provides reasonable summation of the items being shipped, parties involved, cargo values, other info to supply chain member and custom officials

.861

what is the probability of being served immediately in a TWO-server model?

12%

what would Rho be in a FIVE-server model?

offshoring

when a company moves manufacturing out of its "home" country to another country

reneging

when a customer joins the line, gets frustrated and leaves

make-to-order

which of the following best describes a pure PULL system?

rocks and water analogy

you can sail a boat in water that is surrounded by big, protruding rocks. you can not run a successful supply chain if you are surrounded by problems. don't get more water and cover the rocks up (more inventory)- fix your problems! take the rocks out!