Supply Chain Management Exam 1

inventory control:

-2 priorities: adequate inventory levels & inventory accuracy -Place orders to prevent stock-outs -Track status of orders -Perform "cycle counts" at regular intervals

the logistics interface: -marketing/sales

-4 p's (marketing mix) price, product, promotion, and place

inventory-transportation cost:

-Aggregating material movements allows fewer and larger shipments and reduced transportation costs. -Less frequent material movement, however, requires holding inventory and possible decreases in customer service.

procurement:

-Buying, purchasing, sourcing -Consider cost, distance (time), quantities -Make decisions at an item/component level and at a systems level -Contracts can be a major part

customer service:

-Direct interaction with customer to influence/take an order & services offered to customers -Work with inventory control, manufacturing, warehousing, transportation -Must understand product availability and lead time

order fulfillment:

-Filling and shipping customer orders -Process & time important -"Order lead time" -Order transmittal, processing, preparation, & delivery

product variety-incentory:

-Increased variety and features create new part numbers, which affects forecasting complexity, product placement across the supply chain, and inventory levels.

storage:

-Involves inventory management & warehousing -How many warehouses needed? -How much inventory to hold? -Direct relationship with transportation

material handling:

-Movement of goods into and within a warehouse -Use of equipment to move product short distances -Conveyor belts, forklifts, cranes, automated storage

other logistics activities:

-Parts and service support -Returns process (reverse logistics) -product design -Maintenance services

facility location:

-Physical location impacts time and space relationships with suppliers and customers -Costs fluctuate with depending on location

industrial packaging:

-Protects products when being transported or stored -Boxes, shrink wrap, banding, bags -Higher risk in transport, more packaging needed -Sustainability influence/waste

demand forecasting:

-Reliable forecasts important but also challenging -Necessary for production efficiencies while meeting customer needs -Important to work with operations and marketing

lead time-transportation cost:

-Transportation costs are lowest when large quantities of items are transported between stages of the supply chain, creating longer lead times.

production planning and scheduling:

-Use forecasts calculate manufacturing needs -With multiple product lines, timing of production becomes challenging

transportation:

-Very important logistics activity; physical link -Often largest variable logistics cost -Physical movement of goods -5 modes

lost size (inventory):

-While larger lot sizes provide production efficiencies, demand rarely comes in large or standard lot sizes. -Large lots lead to high inventory in anticipation of demand.

the logistics interface: -accounting

-cost information for analysis of alternative logistics options -supply chain tradeoffs and performance measurements

examples of supply chain support from non-supply groups: -marketing

-develop accurate and timely demand requirements -share end-customer requirements with supply chain planning groups

examples of supply chain support from non-supply groups: -engineering

-evaluate technical capabilities during supplier site visits -interact with supply managers during product development

what are the pillars of proactive supply chain management and approaches with objectives of effective management of risk, relationships, and trade-offs?

-human resources -organized design -information technology -organizational measurement

how can physical inventory be replaced for substituting information for inventory?

-improve communications -collaborate with suppliers -track inventory precisely -keep inventory in transit -use postponement centers -mix shipments to match needs -don't wait in line at customs

what are the components of logistics?

-inventory -customer -dictionary -international society of logistics -utility/value -council of supply chain management professionals -component support

the logistics interface: -finance

-inventory levels -warehouses and transportation fleet owned and/or outsourced

the logistics interface: -manufacturing

-length of the production run -available quantity of raw material and component -industrial packaging

the logistics interface:

-manufacturing -accounting -finance -market/sales

examples of supply chain support from non-supply groups: -legal

-perform timely and effective reviews of supply chain contracts

examples of supply chain support from non-supply groups: -accounting

-provide accurate data to support. internal and external cost analyses

when considering alignment and integration in the internal process integration and collaboration, what are the factors play a role in the flow of goods and information?

-purchasing -logistics -production control -R&D -marketing/sales -distribution

how do managers determine the type of relationship to develop?

-strategic items (collaboration) -leverage items (cooperative) -transaction items (transactional) -market items (competitive)

examples of supply chain support from non-supply groups: -information technology

-support the development of supply chain information systems, including performance measurements

examples of supply chain support from non-supply groups: -human resources

-support the recruitment of human resources to staff supply chain positions -provide training and education programs related to supply chain knowledge and skill areas

the goal:

-theory of constraints -"increase throughput while reducing both inventory and operation expense"

what 4 areas play an important role in logistics in supply chain?

-transportation -warehousing -3&4 PL logistics -reverse logistics

examples of supply chain support from non-supply groups: -finance

-validate cost savings from supply chain activities -identify the impact of supply chain initiatives on corporate performance indicators, including ROI and RONA -assess the impact of inventory improvements on cash flow and working capital requirements

what are the 4 types of logistics?

1. business 2. military 3. event 4. service

information is used for what two purposes in any supply chain?

1. coordinating daily activities 2. forecasting and planning

what are the 5 logistics strategies?

1. coordinating functions 2. integrating the supply chain 3. substituting inventory information 4. reducing number of partners 5. pooling risks

what are the steps to construct the logistics network for substituting information for inventory?

1. locate in the right countries 2. develop an effective export-import strategy 3. select warehouse locations 4. select. transportation modes and carriers 5. select the right number of partners 6. develop state of the art information systems

what are the 5 common trade-offs?

1. lot size (inventory) 2. inventory-transportation cost 3. lead time-transportation costs 4. product variety-inventory 5. cost-costumer service

what are the 5 logistics evaluation trade-offs?

1. order cycle length 2. inventory effect 3. transportation effect 4. product related factors 5. spatial relationships

what are the 6 external forces driving change?

1. organizational consolidation 2. technology 3. globalization 4. empowered consumers 5. government policy and regulation 6. energy and sustainability

what are the 5 types of economic utility that logistics adds value to?

1. place (logistics) 2. time (logistics) 3. form (logistics)(production/operations) 4. possession (marketing) 5. quantity

what are the 4 p's of the marketing mix?

1. price 2. product 3. promotion 4. place

what are the two factors of manufacturing?

1. product focus 2. functional focus

what are the 3 flows of supply chain management?

1. product/service flow 2. information flow 3. finance/cash flow

what are the 5 areas of supply chain management decision making?

1. production 2. inventory 3. location 4. transportation 5. information

what are the 6 logistics goals?

1. rapid response capability 2. minimum variance 3. minimum inventory expense 4. consolidated shipments 5. high quality 6. support the product life cycle

what are the Seven R's of logistics?

1. right product 2. right quantity 3. right condition 4. right place 5. right time 6. right customer 7. right price

what 4 concepts did Walmart introduce into supply chain management?

1. the strategy of expanding around distribution centers (DCs) 2. using electronic data interchange (EDI) with suppliers 3. the "big box" store format 4. "everyday low prices"

a supply chain is a set of ___ or more ___ directly linked by one or more of the upstream and downstream ___ of products, services, finances, and information from a source to a customer.

3; organizations; flows

cost-customer service:

Increased customer service levels usually require higher inventory levels and faster delivery, which increase supply chain costs.

which term has a more systemic approach and needs a big picture perspective?

SCM

what retailer had a "racial past?"

Sear's

the most popular concepts of logistics management is the concept of ___

Seven R's.

supply chain management:

The art and science of integrating the flows of products, information and financials through the entire supply pipeline from the supplier's supplier to the customer's customer.

product focus:

a factory that takes a product focus performs the range of different operations required to make a given product line from fabrication of different product parts to assembly of these parts.

functional focus:

a functional approach concentrates on performing just a few operations such as only making a select group of parts or only doing assembly. these functions can be applied to making different kinds of products.

reverse logistics:

a way to return, reuse, recycle, or disposal of products that make the the journey from the customer to the supplier.

customers/consumers:

are any organization that purchases and uses a product.

accounting is the language of business. marketing is the promotion of business. in supply chain, we are the ___.

business

pipelines:

can be efficient but are restricted to commodities that are liquids or gases such as water, oil, and natural gas.

rail:

cost efficient but can be slow since it's restricted.

ship:

cost efficient but slowest mode of transport.

the logistics value proposition needs to balance ___ and ___.

cost; service

location:

emphasizes responsiveness would be on e where a company opens up many locations to be physically close to its customer base.

logistics value proposition:

finding the balance between service and cost to achieve customer satisfaction at the lowest total cost.

what is NOT a goal of the industrial food chain?

flavorful products

logistics functions:

following areas of logistics management, contribute to an integrated approach to logistics.

what is the #1 thing customers want when buying produce?

freshness

customer:

getting the right product to the right customer in the right quantity, in the right condition, at the right places, at the right time, and at the right cost (7 R's).

Walton SCM alum, Emma Cleaver, talked about which of the following brands, in addition to wipes, that Clorox was having COVID capacity issues with? -hidden valley ranch dressing -Kingsford charcoal -glad trash bags

glad trash bags

logistics shares the ___ of supply chain management, to meet ___.

goal; customer requirements

job lot storage:

in this approach, all the different products related to the needs of a certain type of customer or related to the needs of a particular job are stored together.

stock keeping unite (SKU):

in this traditional approach, all of a given tyupe of product is stored together. this is an efficient and easy to understand way to store products.

___ is the basis upon which to make decisions regarding the other supply chain drivers. it is the connection between all the activities and operations in a supply chain.

information

___ is spread throughout the supply chain and includes everything from raw material to work in process to finished goods that are held by the manufacturers, distributors, and retailers in a supply chain.

inventory

___ refers to the geographical site of supply chain facilities. it also includes the decisions related to which activities should be performed in each facility.

location

why ____ is important to firms: -creating value for organizations -interfacing tradeoffs (often between cost and service) -responsible for a wide range of important activities

logistics

what was notable about Henry "Box" Ford?

man who shipped himself to freedom from VA to PA in a wooden crate.

inventory:

management of materials in motion and at rest.

transportation:

many modes of this play a role in the movement of goods through chains via air, rail, water, road, or pipeline, selecting the most efficient combination improves the value created for customers.

logistics:

movements of raw materials in whole supply chain.

is there a single globally accepted definition for either SC or SCM?

no

which of the following supply chain examples was NOT discussed in Australian What is SCM video? -Sydney opera house -skyscrapers -cruise ships -sydney harbor -olympic village

olympic village

substituting information for inventory:

one of the tactics, used to design effective logistics strategy. it requires taking a series of steps to construct the logistics network. another tactic is physical inventory can be replaces by better information.

reducing the number of partners reduces...?

operating costs, cycle time, and inventory holding costs.

___ refers to the capacity of a supply chain to make and store products.

production

utility/value:

providing time and place utility (value) of material and products in support of organization objectives.

coordinating daily activities:

related to the functioning of the other four supply chain drivers: production, inventory, location, and transportation.

supply chain is all about managing ___, ___, and ___.

relationships; risks, tradeoffs

trucks:

relatively quick and very flexible mode of transport. they can go anywhere and are cost cost can fluctuate.

transportation:

responsiveness can be achieved by modes that are fast and flexible.

inventory:

responsiveness here can be had by stocking high levels of inventory for a wide range of products and can be gained by stocking products at many locations so as to have it close to customers and available to them immediately.

which term is defined as inventory that is a buffer against uncertainty?

safety stock

retailers:

stock inventory and sell in smaller quantities to the general public.

what does SKU stand for?

stock keeping unit

pooling risks can reduce...?

storage costs and risks of stock outs by consolidating stock in centralized warehouses.

component support:

supply management for the plan (inbound logistics) and distribution management for the firm's customers (outbound logistics).

council of supply chain management professionals:

that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customer requirements.

international society of logistics :

the art and science of management, engineering, and technical activities concerned with requirements, design, and supplying and maintaining resources to support objectives, plans, and operations.

logistics:

the art and science of obtaining, producing, and distributing material and product in proper place and in proper quantities.

dictionary:

the branch of military science having to do with procuring, maintaining, and transporting material personnel, and facilities.

inventory:

the creation and storage of this is a cost and to achieve high levels of efficiency, the cost of it should be kept as low as possible.

electronic transport:

the fastest mode of transport and very flexible/cost efficient. however, it can only be used for movement of certain types of products such as electric energy, data, and products composed of data such as music, pictures, and text.

production:

the more excess capacity that exists, the less efficient the operation is.

reducing supply chain partners to an effective number:

the more partners there are in a chain, the more difficult and expensive the chain is to manage.

logistics management:

the 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 points of origin and the points of consumption in order to meet costumers requirements.

information:

the power of this driver grows stronger each year as the technology for collecting and sharing this becomes more widespread, easier to use, and less expensive.

location:

the responsiveness vs. efficiency trade-off here is the decision whether to centralize activities in fewer locations to gain economies of scale and efficiency, or to decentralize activities in many locations close to customers and suppliers in order for operation to be more responsive.

trade-offs:

the strategic equivalent of a fork in the road. if you take one path, you cannot simultaneously take the other.

information:

the trade-off between responsiveness and efficiency involves weighing the benefits that good information can provide against cost of acquiring that information. abundant, accurate ___ can enable efficient operating decisions and better forecasts but the cost of building and installing systems to deliver this can be very high.

transportation:

the trade-off between responsiveness and efficiency is manifested in the choice of transport mode.

service providers:

these are organizations that provide services to producers, distributers, retailers, and customers.

third(3PLs) & fourth(4PLs) party logistics:

these providers actually perform or manage one or more logistic services. these providers are logistics specialists and play the role of general contractor by taking over the entire logistics function for an organization.

crossdocking:

this approach was pioneered by Walmart in its drive to increase efficiencies in its supply chain.

production:

this driver can be made very responsive by building factories that have a lot of excess capacity and that use flexible manufacturing techniques to produce a wide range of items.

seasonal inventory:

this is inventory that is built up in anticipation of predictable increases in demand that occur at certain times of the year.

safety inventory:

this is inventory that is held as a buffer against uncertainty

cycle inventory:

this is the amount of inventory needed to satisfy demand for the product in the period between purchases of the product.

increase ___ while simultaneously reducing ___ and ___.

throughput; inventory; operating expense

forecasting and planning:

to anticipate and meet future demands.

supply chain:

transforming a materials into products, and getting it to customers.

___ refers to the movement of everything from raw material to finished goods between different facilities in a supply chain.

transportation

airplanes:

very fast mode of transport and are very responsive but is also the most expensive mode.

warehousing:

when inventory is not on the move between locations, it may have to spend some time here. this is where the activities related to receiving, storing, and shipping materials to and from production or distribution locations.

pooling risks:

when manufactures and retailers experience high variability in demand for their products, they can put together common inventory components associated with a broad family of products to buffer the overall burden of having to deploy inventory for each discrete product.

what product has YKK on it, is headquartered in Japan but likely manufactured in the U.S. in Georgia?

zipper