Ch. 11 Flashcards
The supply chain denotes the process by which components are moved and produced from raw material to the ultimate consumer.
Supply Chain
is the streamlining of a business’ supply- side activities to maximize customer value and to gain a competitive advantage in the marketplace.
Supply Chain management
What is a primary supplier selection criterion for a firm pursuing a differentiation strategy?
Willingness of supplier to work with JIT programs and contribute design and tech expertise
For which corporate strategy(ies) should supply chain inventory be minimized?
Just-in-time
What are alternative sourcing strategies? What are the six sourcing strategies?
Using many suppliers, using few suppliers, vertical integration, joint ventures, participating in Keiretsu networking, and creating virtual companies.
What would it be called if a fast-food retailer acquired a spice manufacturer?
Vertical Integration
What is a disadvantage of the “few suppliers” sourcing strategy?
It is costly to change suppliers
Developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.
vertical integration
What are advantages of the “few suppliers” sourcing strategy?
Long-term relationship, suppliers willing to participate in just-in-time, and protecting each other’s trade secrets.
What sourcing strategy is used by a fried chicken fast-food chain that has acquired feed mills and poultry farms?
Vertical integration
Japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. What is this approach called?
Keiretsu
What are advantages of a virtual company?
Lower overhead costs, Lower capital needed, Higher scalability
When Daimler and BMW pooled resources to develop standardized auto components, what sourcing strategy best describes that action?
Joint Venture
Risk of not meeting customer needs and losing money.
Supply Chain Risk
How can firms mitigate supply chain risk?
Research and assess possible risks, innovative planning, reduce potential disruptions, have flexible secure supply chains.
Using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other.
Cross-sourcing
Increasing fluctuation in orders that often occurs as orders move through the supply chain.
Bull-whip effect
What is the impact of the bullwhip effect?
Creates unstable production schedules, expensive capacity change costs, and longer lead times.
What is a remedy for shortage gaming?
allocate orders based on demand.
Hewlett-Packard withholds customization of its laser printers as long as possible. This is an example of which opportunity with the integrated supply chain?
Postponement
A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker has adopted what opportunity with the integrated supply chain?
Drop shipper
A system in which a supplier maintains material for the buyer, often delivering directly to the buyer’s using department.
Vendor Managed Inventory
A system in which members of a supply chain share information in a joint effort to reduce supply chain costs.
Collaborative planning, forecasting, and replenishment (CPFR)
What type of negotiating strategy requires the supplier to open its books to the purchasers?
Cost-based price model
What are the three classic types of pricing negotiation strategies?
The three are: 1) cost based price model (open books about full or direct costs of making a good), 2) market-based price model (sets price based upon similar products being offered on the market) and 3) competitive bidding (bids are sought from competing contractors, suppliers).
What are the four stages of supplier selection?
Supplier evaluation, supplier development, negotiation, and contracting.
Of the four stages of supplier selection, at what stage could the factor weighting approach be used?
Supplier evaluation
What is a synonym for suppliers?
Vendors
What are three common features of contracts between buyers and suppliers?
Quantity discounts, buybacks, and revenue sharing.
Purchasing facilitated through the internet
e-Procurement
The process of managing materials for operations to meet certain objectives such as delivery speed, low inventories, and high accuracy.
Logistics Management
What are alternative shipping systems?
Trucking, railroad, airfreight, waterways, pipelines, and multimodal
Sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.
Channel Assembly
What are the three goals of supply chain managers when outsourcing logistics?
Reduce inventory, cost, and improve delivery.
Accepting shipments from a variety of sources and recombining them for distribution to a variety of destinations, often without storing goods throughout the transition.
Cross-docking
What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network?
Inventory strategy, location strategy, and transport strategy
Refers to numerous activities and processes such as packaging, warehousing, supply chain, and logistics.
Distribution Management
What is the objective of distribution management?
Response time, lowest cost, and maximum profit
What is the process called of sending returned products back up the supply chain for value recovery or disposal?
Return of reverse logistics
