Chapter 6

Question 1

Supply chain management

Answer 1

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.

Question 2

Supply Chain Purpose

Answer 2

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.

Question 3

Three Views of Value/Supply Chains

Answer 3

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

Question 4

Which of the two views are the same

Answer 4

• Input/Output View

- Typical Goods-Producing Supply Chain Structure

Question 5

Components of a Supply Chain

Answer 5

It starts in the earth as you are taking direct material out of the earth

Question 6

For the components of a supply chain on the left side is it a up-stream or a down-stream

Answer 6

left side is upstream

Question 7

For the components of a supply chain on the right side is it a up-stream or a down-stream

Answer 7

right side is a downstream

Question 8

Dell sells

Answer 8

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.

Question 9

Dell is a good example of what type of flexibility
A. Design Flexibility
B. Volume Flexibility

Answer 9

A. Design Flexibility

Question 10

Ford GM they use a lot of car seats in there cars. Do they make the car seats? Why or why not?
[ Test question ]

Answer 10

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

Question 11

How many suppliers does a business should have?

Answer 11

1-2 suppliers

Question 12

Why do you only want 1-2 suppliers?

Answer 12

It establishes a business relationship that focuses on stable quality and consistency

Question 13

What’s another good reason to have 1-2 suppliers

Answer 13

• 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

Question 14

Should WalMart have 1-2 suppliers as well?

Answer 14

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

Question 15

Does Apple make their computer?

Answer 15

No

Question 16

What's the main competitive priority for Apple?
A. Quality
B. Time
C. Consistency 
D. Innovation

Answer 16

D. Innovation

Question 17

Design Flexibility

Answer 17

The ability to customize a product or service

Question 18

Push system
vs
Pull system

Answer 18

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.

Question 19

Postponement

Answer 19

delay complete assembly of the product unit you receive the complete order

Question 20

Multisite management

Answer 20

Managing offices all over the world. (franchises aka Mc

Donald’s)

Question 21

Reverse Logistics

Answer 21

Returning items back up the supply chain.

Question 22

Vertical Integration

Answer 22

acquiring a value chain before or after your process. For example KFC buys a chicken farm which is their suppliers.

Question 23

Outsourcing

Answer 23

products that use to be made in house and now a suppliers makes it for them

Question 24

Offshoring

Answer 24

moving a manufacturing/service facility overseas

Question 25

Break-even Analysis

Answer 25

Know how to find the break-even point look at the slides

Question 26

Center of Gravity Method

Answer 26

The purpose is to compute where to build your warehouse. (know how to compute it for the exam)

Question 27

Supplier Evaluation

Answer 27

this is where you inspect your suppliers facility

Question 28

Inventory Management

Answer 28

Supplier manages their inventory not the business