Chapter 6 Flashcards
Supply chain management
is the management of all activities that facilitate the fulfillment of a customer order for a manufactured good to achieve satisfied customers at a reasonable cost.
Supply Chain Purpose
Supply Chain Purpose•The basic purpose of a supply chain is to coordinate the flow of materials, services, and information along the elements of the supply chain to maximize customer value.
Three Views of Value/Supply Chains
Input/Output View (suppliers purchasing operations distribution customers)
- Pre- and Post-Services View (gain a customer value creation keeping the customer)
- Typical Goods-Producing Supply Chain Structure (suppliers manufacturing customers)1/19/2019
Which of the two views are the same
- Input/Output View
- Typical Goods-Producing Supply Chain Structure
Components of a Supply Chain
It starts in the earth as you are taking direct material out of the earth
For the components of a supply chain on the left side is it a up-stream or a down-stream
left side is upstream
For the components of a supply chain on the right side is it a up-stream or a down-stream
right side is a downstream
Dell sells
highly customized computers, servers, computer workstations, and peripherals. Most computers are assembled based on individual orders through a direct sales model. Dell’s value chain electronically links customers, suppliers, assembly operations, & shippers.
Dell is a good example of what type of flexibility
A. Design Flexibility
B. Volume Flexibility
A. Design Flexibility
Ford GM they use a lot of car seats in there cars. Do they make the car seats? Why or why not?
[ Test question ]
No they buy it from someone else. They are famous for making car seats. They focus their development and research on power, engine. They focus on there core competency
How many suppliers does a business should have?
1-2 suppliers
Why do you only want 1-2 suppliers?
It establishes a business relationship that focuses on stable quality and consistency
What’s another good reason to have 1-2 suppliers
- You do not have to inspect the product to make sure the quality levels are up to the business standards.
- It can be directly shipped to manufacturing or selling the product
- This saves a lot of money in the long run as they don’t have to pay employees to inspect the product nor waste any resources on inspecting
Should WalMart have 1-2 suppliers as well?
No, they shouldn’t as Retailers mainly want a product that is cheap as that’s what consumers want in a retail store (especially in WalMart). Therefore, sole suppliers won’t work for Walmart or other retailer stores
Does Apple make their computer?
No
What's the main competitive priority for Apple? A. Quality B. Time C. Consistency D. Innovation
D. Innovation
Design Flexibility
The ability to customize a product or service
Push system
vs
Pull system
in a push system there is no interaction between business or consumer. Goods are produce in advance.
in a pull system don’t start pushing the product until you receive and order. this is required if you operate just in time facility.
Postponement
delay complete assembly of the product unit you receive the complete order
Multisite management
Managing offices all over the world. (franchises aka Mc
Donald’s)
Reverse Logistics
Returning items back up the supply chain.
Vertical Integration
acquiring a value chain before or after your process. For example KFC buys a chicken farm which is their suppliers.
Outsourcing
products that use to be made in house and now a suppliers makes it for them
Offshoring
moving a manufacturing/service facility overseas
Break-even Analysis
Know how to find the break-even point look at the slides
Center of Gravity Method
The purpose is to compute where to build your warehouse. (know how to compute it for the exam)
Supplier Evaluation
this is where you inspect your suppliers facility
Inventory Management
Supplier manages their inventory not the business
