CHAPTER 6 – PLANNING THE SUPPLY CHAIN

Question 1

gives you an opportunity to set goals, evaluate options, and make decisions; it also helps ensure that you invest your time and money wisely

Answer 1

Planning

Question 2

not a one-time event;is an ongoing and iterative process that ensures your supply chain adapts to changes in your business.

Answer 2

Supply chain planning; planning

Question 3

different ways to plan supply chain

Answer 3

three main approaches to balancing supply and demand

Question 4

fundamental question at the heart of every supply chain plan

Answer 4

“How are we going to balance supply with demand?”

Question 5

three main approaches to balancing supply and demand

Answer 5

a. Make-to-stock
b. Make-to-order
c. Engineer-to-order

Question 6

-Start by forecasting how much you think customers are going to buy. This forecast drives all your manufacturing and distribution planning.
-sometimes called a push system because you’re pushing products out toward your customers even though they haven’t yet placed orders

Answer 6

Make-to-stock

Question 7

-your manufacturing and distribution services are standing by, waiting for an order to come in.
-This approach is an example of a pull system because an order has to pull the products through the supply chain

Answer 7

Make-to-order

Question 8

-making a customized product for each order, so you can’t finish the product design until your customer gives you the specifications.
-Pull system

Answer 8

Engineer-to-order

Question 9

Supply chain plans are built around

Answer 9

goals, or requirements.

Question 10

planning always starts by

Answer 10

identifying a requirement

Question 11

Anything used to make supply chain work___& (4)

Answer 11

Resource:
People
Facilities
Inventory
Machines

Question 12

– Things each resource can do or it can’t do
– may be physical limitations, or they may be limits imposed on the supply chain by financial, safety, and policy rules.

Answer 12

Constraints

Question 13

Factors involved in aligning resources with requirements

Answer 13

Analyze your Customers
Plan your Products
Plan your Production Systems
Plan your Delivery System
Plan for Returns

Question 14

– the source of every dollar that flows into your supply chain
– Each ____ is unique, with specific needs, preferences, and constraints.

Answer 14

customer

Question 15

Three common ways to analyze customers and their needs:

Answer 15

Market segmentation
Persona development
Key customer analysis

Question 16

segmenting them based on demographic characteristics.

Answer 16

Market segmentation

Question 17

is a description of an imaginary customer that represents key characteristics of many of your real customers.

Answer 17

persona (or customer profile)

Question 18

identify actual customers who are most likely to buy your products

Answer 18

Key customer analysis

Question 19

– can provide useful data for studying your customers by tracking purchases and other interactions with customers

Answer 19

Customer Relationship Management (CRM) System

Question 20

– can be used to create personas, to analyze market segments, or to study key customer behaviors.

Answer 20

Customer Relationship Management (CRM) System

Question 21

The supply chain for a product can change based on:

Answer 21

Demand-related factors
Supply-related factors

Question 22

product designs often change based on customer feedback

Answer 22

Demand-related factors

Question 23

resources and constraints may dictate that you make changes to your product.

Answer 23

Supply-related factors

Question 24

Important factors in making decisions for many products:

Answer 24

– Knowing which materials are readily available
– where to get them
– how much they cost

Question 25

– often evolve over time
– should be incorporated into your supply chain planning

Answer 25

Product characteristics

Question 26

– lists all the parts that go into a product, and can help you identify many of the resources that should be included in your supply chain plan

Answer 26

Bill of material

Question 27

– determines when, where, and how to make products so that you can meet your requirements without violating your production constraints

Answer 27

Production Plan

Question 28

ship all the raw materials to a single facility and manufacture your products there

Answer 28

Centralized Production

Question 29

involves manufacturing products at multiple sites to satisfy demand in each region

Answer 29

Distributed Production

Question 30

a good way to increase your access to resources and overcome constraints (such as not having enough space or enough people) in each production facility.

Answer 30

Splitting manufacturing steps across multiple factories

Question 31

One of the issues to consider when splitting up the steps in a manufacturing process is the impact it will have on inventory

Answer 31

work-in-process inventory, or WIP

Question 32

Partially assembled products in between manufacturing steps

Answer 32

Work-in-Process Inventory (WIP)

Question 33

The further one manufacturing step is from the next one, _____between the steps

Answer 33

the more WIP you are likely to accumulate

Question 34

Factors that constrain delivery system:

Answer 34

-Location
-Characteristics of the product
-Needs of the customers

Question 35

The work of delivery (which includes moving and storing products)

Answer 35

Logistics

Question 36

the collection of resources that you use to do this work (moving and storing products)

Answer 36

logistics (or distribution) network.

Question 37

– The network for returned products
– the flow goes from the customer back to your company.

Answer 37

Reverse Supply Chain

Question 38

the value of a reverse supply chain is often the_____ from returned products

Answer 38

amount of money that is recovered

Question 39

– Another strategy for reverse supply chains
– Many products contain valuable materials that can be recovered when the product is no longer needed or when it reaches the end of its life

Answer 39

Recycling

Question 40

become raw materials for a remanufacturing process that makes like-new parts
(used components)

Answer 40

cores