CHAPTER 3

Question 1

Steps in prioritizing SC goals

Answer 1

1. Understand CV
2. Recognize competitors
3. Understand P&S

Question 2

Supply chain priority that is low price and has availability

Answer 2

Comodities

Question 3

A SC priority that is high price and unique ex. High end cars

Answer 3

Luxury goods

Question 4

A SC priority that has wide variety but has low inventory

Answer 4

Fashion goods

Question 5

A SC priority that needs to last long and is a balance of transportation/inventory.

Answer 5

Durable goods

Question 6

A SC priority that is flexible, speed, security.

Answer 6

Technology

Question 7

Amount that you pay for the products or services that you buy.

Answer 7

Procurement cost

Question 8

Includes salaries and overhead cost

Answer 8

Procurement cost

Question 9

6 SUPPLY CHAIN DRIVERS

Answer 9

1. Facilities
2. Inventory
3. Transportation
4. Information
5. Sourcing
6. Pricing

Question 10

Using it optimizes the transportation cost

Answer 10

Multi-modal transportation

Question 11

Keeping products in a facility

Answer 11

Inventory cost

Question 12

Risk products could be lost or damaged

Answer 12

Shrinkage

Question 13

Needs quality assurance process to ensure the product meets the requirements

Answer 13

Quality cost

Question 14

Conflicts and trade-offs that makes sure that you have enough product to meet

Answer 14

Sales vs Operations

Question 15

Responsible for costs of making, moving and storing products

Answer 15

Operations and logistics

Question 16

They want to make and store only as many products are needed

Answer 16

Operations people

Question 17

Trade offs between sales and operation can lead to major conflicts

Answer 17

Unrealistic forecast by sales department
Operations ste blamed for having too much inventory

Question 18

Forces both to coordinate and agree on their goals

Answer 18

Sales and operations planning

Question 19

Best case scenario

Answer 19

Unconstrained forecast

Question 20

Everyone wins when supply chain partners collaborate and share information

Answer 20

Customer vs. Supplier

Question 21

Register trademark of GS-1, non profit organization that maintains supply chain management communication standards

Answer 21

CPFR Collaborative planning, Forecasting and Replenishment

Question 22

Teams that are looking for ways to innovate and improve products

Answer 22

Engineering teams

Question 23

Teams that are looking for ways to get products that meet the specifications at the most favorable prices

Answer 23

Procurement team

Question 24

One best way to manage the tension between two teams is to create a?

Answer 24

Cross functional product team

Question 25

To manage the trade-offs between engineering and procurement

Answer 25

Design build strategy

Question 26

The ability to provide them with all the product they want when they order is called?

Answer 26

Service level

Question 27

Process in which you try to guess how much product you are going to sell

Answer 27

Forecasting

Question 28

Error that is random and is generally a result of imperfect information

Answer 28

Unbiased error

Question 29

Error that occurs in pattern

Answer 29

Biased error

Question 30

It easily spots the forecast bias and compares forecast data to data

Answer 30

Graph creation

Question 31

Degree of forecast accuracy

Answer 31

MAPE (Mean absolute percentage)

Question 32

Inventory that provides you with protection from stock out

Answer 32

Safety stock

Question 33

Sometimes referred as customer service level

Answer 33

Instock

Question 34

6 conflicts or trade-offs

Answer 34

1. Sales vs operations
2. Customer vs supplier
3. Engineering vs procurement
4. Inventory vs customer service
5. Inventory vs downtime
6. Procurement vs logistics

Question 35

Looks for ways to get the same materials at lower cost

Answer 35

Procurement

Question 36

Increasing the amount of material

Answer 36

Lot size