Chapter 11 exam 3 Flashcards

1
Q

The objective of supply chain management is to structure the supply chain to _____ its competitive advantage and benefits to the ultimate consumer.

A

maximize

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2
Q

coordination of all supply chain activities involved in enhancing customer value.

A

supply chain management

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3
Q

choosing between obtaining products and services externally as opposed to producing them internally.

A

make-or-buy decisions

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4
Q

transfer traditional internal activities and resources to outside vendors.

A

outsourcing.

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5
Q

Six sourcing strategies:

  1. many suppliers
  2. few suppliers
  3. vertical integration
  4. ___ _____
  5. Keiretsu networks
  6. ____ ______
A

joint ventures, virtual companies

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6
Q

sourcing strategy that is commonly used for commodity products; purchasing is typically based on price, suppliers compete with one another

A

many suppliers

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7
Q

sourcing strategy, buyers form longer term relationships with fewer suppliers. create value through economies of scale and learning curve improvements,

A

few suppliers

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8
Q

developing ability to produce goods or services previously purchased or actually buying a supplier or distributor.

A

vertical integration

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9
Q

formal collaboration that enhances skills, secure supplies, and reduce costs. challenge is to cooperate without diluting brand or conceding competitive advantage.

A

joint ventures.

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10
Q

middle ground between few suppliers and vertical integration. supplier becomes part of company coalition.

A

Keiretsu networks

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11
Q

rely on a variety of supplier relationships to provide services on demand.

A

virtual companies

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12
Q

shipments get misrouted, stolen, damaged, or excessively delayed.

A

security and JIT

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13
Q

three issues complicate development of an efficient, integrated supply chain:

A

local optimization, incentives and large lots.

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14
Q

increasing fluctuation in orders that often occurs as orders move through the supply chain.

A

bullwhip effect

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15
Q

opportunities for effective management in the supply chain include the following 10 items:

  1. accurate “pull” data
  2. lot size reduction
  3. single-stage control of replenishment
  4. vendor-managed inventory
  5. collaborative planning, forecasting, and replenishment (CPFR)
  6. blanket order
  7. standardization
  8. postponement
  9. electronic ordering and funds transfer
  10. drop shipping and ___
A

special packaging.

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16
Q

accurate sales data that initiate transactions to “pull” product through the supply chain.

A

pull data

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17
Q

fixing responsibility for monitoring and managing inventory for the retailer.

A

single stage control of replenishment

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18
Q

system in which suppliers maintains material for the buyer, often delivering directly to the buyers using department.

A

vendor managed inventory (VMI)

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19
Q

systems which members of supplier chain share information in joint effort to reduce supply chain costs.

A

CPFR

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20
Q

long term purchase commitment to a supplier for items that are to be delivered against short term release to ship.

A

blanket orders

21
Q

delaying any modifications or customizations to a product as long as possible in the production process.

A

postponement

22
Q

speeds transactions and reduces paperwork.

A

electronic ordering and funds transfer

23
Q

shipping directly from supplier to end consumer rather than from the seller, saving time and reshipping costs.

A

drop shipping

24
Q

building the supply base has 4 steps:

  1. supplier evaluation
  2. supplier _____
  3. negotiations
  4. contracting
A

development

25
step of building the supply base that is finding potential suppliers
supplier evaluation
26
step of building the supply base that integrates the supplier into the system.
supplier development
27
Shares risks, benefits, creates incentives.
Contracting.
28
Purchasing facilitated through the internet, reduces costs, integrates supply chain.
E-procurement.
29
Objective of _____management is to obtain efficient operations through the integration of all material acquisition, movement and storage activities.
Logistics
30
``` Shipping systems: Trucking Railroads ____ Waterways Pipelines Multimodal. ```
Airfreight
31
Moves the vast majority of manufactured goods.
Trucking
32
Capable of carrying large loads, little flexibility through containers and piggybacking have helped with this.
Railroads.
33
Fast and flexible for light loads, may be expensive.
Airfreight
34
Typically used for bulky, low value cargo.
Waterways
35
Used for transporting oil, gas, and other chemical products.
Pipelines.
36
Combines shipping methods, common in international shipments.
Multimodal
37
Fundamental purpose is to store gods, may be expensive.
Warehousing
38
Postponed final assembly of a product so the distribution channel can assemble it.
Channel assembly.
39
The outbound flow of products. Increasing the number of facilities generally improves response time and customer satisfaction.
Distribution management.
40
Three types of ethics involved in sustainable supply chain management: Personal ethics Ethics __________ Ethical behavior regarding the environment
Within the supply chain
41
Institute for supply management (ISM) principles and standards: Promote and uphold responsibilities to ones employer; avoid perceived impropriety or conflicts of ____
Interest
42
``` 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.
43
Process of sending returned products back up the supply chain for value recovery or disposal.
Reverse logistics.
44
Supply chain designed to optimize both forward and reverse flows.
Closed loop supply chain.
45
Percentage invested in inventory = (average inventory investment/total assets) x 100
Assets committed to inventory.
46
____ _____ = (cost of goods sold/average inventory investment)
Inventory turnover
47
__________ = average inventory investment/(average cost of goods sold/52 weeks)
Weeks of supply
48
Set of processes, metrics and best practices developed by the supply chain council.
The SCOR model.