Chapter 11 exam 3 Flashcards
The objective of supply chain management is to structure the supply chain to _____ its competitive advantage and benefits to the ultimate consumer.
maximize
coordination of all supply chain activities involved in enhancing customer value.
supply chain management
choosing between obtaining products and services externally as opposed to producing them internally.
make-or-buy decisions
transfer traditional internal activities and resources to outside vendors.
outsourcing.
Six sourcing strategies:
- many suppliers
- few suppliers
- vertical integration
- ___ _____
- Keiretsu networks
- ____ ______
joint ventures, virtual companies
sourcing strategy that is commonly used for commodity products; purchasing is typically based on price, suppliers compete with one another
many suppliers
sourcing strategy, buyers form longer term relationships with fewer suppliers. create value through economies of scale and learning curve improvements,
few suppliers
developing ability to produce goods or services previously purchased or actually buying a supplier or distributor.
vertical integration
formal collaboration that enhances skills, secure supplies, and reduce costs. challenge is to cooperate without diluting brand or conceding competitive advantage.
joint ventures.
middle ground between few suppliers and vertical integration. supplier becomes part of company coalition.
Keiretsu networks
rely on a variety of supplier relationships to provide services on demand.
virtual companies
shipments get misrouted, stolen, damaged, or excessively delayed.
security and JIT
three issues complicate development of an efficient, integrated supply chain:
local optimization, incentives and large lots.
increasing fluctuation in orders that often occurs as orders move through the supply chain.
bullwhip effect
opportunities for effective management in the supply chain include the following 10 items:
- accurate “pull” data
- lot size reduction
- single-stage control of replenishment
- vendor-managed inventory
- collaborative planning, forecasting, and replenishment (CPFR)
- blanket order
- standardization
- postponement
- electronic ordering and funds transfer
- drop shipping and ___
special packaging.
accurate sales data that initiate transactions to “pull” product through the supply chain.
pull data
fixing responsibility for monitoring and managing inventory for the retailer.
single stage control of replenishment
system in which suppliers maintains material for the buyer, often delivering directly to the buyers using department.
vendor managed inventory (VMI)
systems which members of supplier chain share information in joint effort to reduce supply chain costs.
CPFR
long term purchase commitment to a supplier for items that are to be delivered against short term release to ship.
blanket orders
delaying any modifications or customizations to a product as long as possible in the production process.
postponement
speeds transactions and reduces paperwork.
electronic ordering and funds transfer
shipping directly from supplier to end consumer rather than from the seller, saving time and reshipping costs.
drop shipping
building the supply base has 4 steps:
- supplier evaluation
- supplier _____
- negotiations
- contracting
development
step of building the supply base that is finding potential suppliers
supplier evaluation
step of building the supply base that integrates the supplier into the system.
supplier development
Shares risks, benefits, creates incentives.
Contracting.
Purchasing facilitated through the internet, reduces costs, integrates supply chain.
E-procurement.
Objective of _____management is to obtain efficient operations through the integration of all material acquisition, movement and storage activities.
Logistics
Shipping systems: Trucking Railroads \_\_\_\_ Waterways Pipelines Multimodal.
Airfreight
Moves the vast majority of manufactured goods.
Trucking
Capable of carrying large loads, little flexibility through containers and piggybacking have helped with this.
Railroads.
Fast and flexible for light loads, may be expensive.
Airfreight
Typically used for bulky, low value cargo.
Waterways
Used for transporting oil, gas, and other chemical products.
Pipelines.
Combines shipping methods, common in international shipments.
Multimodal
Fundamental purpose is to store gods, may be expensive.
Warehousing
Postponed final assembly of a product so the distribution channel can assemble it.
Channel assembly.
The outbound flow of products. Increasing the number of facilities generally improves response time and customer satisfaction.
Distribution management.
Three types of ethics involved in sustainable supply chain management:
Personal ethics
Ethics __________
Ethical behavior regarding the environment
Within the supply chain
Institute for supply management (ISM) principles and standards:
Promote and uphold responsibilities to ones employer; avoid perceived impropriety or conflicts of ____
Interest
ISM ethical standards: Perceived impropriety Conflicts of interest \_\_\_\_\_\_\_\_\_\_\_\_\_ Responsibilities to your employer \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Sustainability and social responsibility. Confidential and proprietary information \_\_\_\_\_\_\_ Applicable laws, regulations and trade agreements. Professional competence.
Issues and influence, supplier and customer relationships. Reciprocity.
Process of sending returned products back up the supply chain for value recovery or disposal.
Reverse logistics.
Supply chain designed to optimize both forward and reverse flows.
Closed loop supply chain.
Percentage invested in inventory = (average inventory investment/total assets) x 100
Assets committed to inventory.
____ _____ = (cost of goods sold/average inventory investment)
Inventory turnover
__________ = average inventory investment/(average cost of goods sold/52 weeks)
Weeks of supply
Set of processes, metrics and best practices developed by the supply chain council.
The SCOR model.
