Chapter 6: Supply Chain/Customer Relationship Management

Question 1

What are just-in-time (JIT) strategies in supply chain management?

Answer 1

Companies using JIT try to keep inventory low and order quantities so that they arrive just in time for production.

Question 2

What is the supply chain?

Answer 2

SC is a system of companies, processes, information, resources.
• Raw materials flow from “upstream” to company.
• Company then transforms materials into semi-finished/finished product using processes
• Product is distributed to customers “downstream”

Question 3

What are the 4 Supply Chain Planning Processes?

Answer 3

1. Demand plan/forecast from data
2. Distribution planning for moving products demanded by customers
3. Production plan to coordinate production activities
4. Sourcing plan to plan inbound inventory levels

Question 4

What does Supply Chain Management (SCM) do for a business?

Answer 4

• Works upstream to coordinate suppliers, product or service production and distribution
• Improves business processes outside of organsational boundaries
• Reduces inventory costs and enhances revenue- improved customer service

Question 5

What is the Bullwhip effect?

Answer 5

Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain.
Minor fluctuations in retail sales for a product can create excess inventory for distributors, manufacturers, and suppliers

Question 6

What are the 3 components of CRM?

Answer 6

operational (front office)
analytical (back office)
collaborative (communication

Question 7

Why is CRM used?

Answer 7

• Web means customer have power and choice, need to keep customers satisfied
• Corporate level strategy to attract customers, portray positive image and create loyalty

Question 8

What is vendor-managed inventory (VMI)?

Answer 8

Suppliers to a manufacturer manager the manufacturer’s inventory levels based on pre-established service levels.