Chapter One Flashcards
What is a Supply Chain?
List 5 main parts
A supply chain consists of the flow of products and services from:
–Raw materials manufacturers
–Component and intermediate manufacturers
–Final product manufacturers
–Wholesalers/distributors
–Retailers
What is a supply chain connected by?
Transportation Storage activities Integrated through information Planning Integration activities
In terms of manufacturers, what are the 1st and 2nd tier suppliers and buyers?
- Raw materials (2nd Tier Suppliers)
- Component and Intermediate Manufacturers (1st Tier Suppliers)
- Manufacturer
- Wholesalers/distributors (1st tier buyer)
- Retailers (2nd tier buyer)
What is the Institute for Supply Chain Management?
The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.
What is The Supply Chain Council?
Managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer.
What is the Council of Supply Chain Management Professionals?
The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities … also includes coordination with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
Are supply chains internal or external?
Both
What is the internal supply chain?
That portion of the supply chain occurring within a single organization
What is the external supply chain?
That portion of the supply chain occurring outside of the given organization (i.e., upstream suppliers and downstream distributors)
What makes up the SCOR Model?
Plan, Source, Return, Make, Deliver, Return
What is a SCOR Model?
A management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company.
Define Vertical Integration?
A company takes care of its operations by itself.
Define Horizontal Integration?
Several companies work together for operations.
What is the Bull Whip Effect?
Small changes in customer demand ripple through to create larger and larger changes as orders move through the supply chain.
Bullwhip Effect Causes and Solutions
- Production based on forecast => increase transparency and reduce length of SC
- Price fluctuations => everyday price
- Periodic order policies => increase frequency
- Rationing/shortage gaming=> transparency
- Batching => combine, consolidate
What is Business Process Reengineering (BPR) practices?
“described as the radical rethinking and redesigning of business processes to reduce waste and increase performance”
What is Just-In-Time (JIT)?
An inventory strategy that manufacturers use to increase efficiency. The process involves ordering and receiving inventory for production and customer sales only as it is needed to produce goods, and not before.
What is Total Quality Management (TQM)?
A focus on the customer, performance measurement, and formal training in quality control methods.
What are the principles of the new supply chain?
- The only entity that puts money into a supply chain is the end customer
- The only solution that is stable over the long term is where every element of the supply chain, from raw material to end customer, profits from the business
- Supply chain management is about economic value-added and total content of a product/ service.
Supply Elements
- Supplier management
- Supplier evaluation
- Supplier certification
- Strategic partnerships
- Green sourcing
- Vendor managed inventory (VMI)
Operations Elements
- Demand management
- CPFR,
- MRP
- ERP
- Inventory management
- JIT/Lean production
- quick response
- TQM
- Six Sigma
Distribution Elements
- Transportation management
- customer relationship management (CRM)
- Distribution networks
- Perfect order fulfillment
- Global supply chains
- Logistics management
- Service response logistics
- Green logistics
Integration Elements
- Process integration
- Performance measurement
- Risk management
What is Supply Chain Analytics?
Using data to reach conclusions and make predictions. Includes Big Data.
What is Supply Chain Sustainability?
Meet the needs of current supply chain without hindering the future
What does Increasing Supply Chain Visibility mean?
Knowing exactly where products are, at any point in the supply chain
What are third-party logistics providers?
For hire outside agents that provide transportation and other services such as warehousing, document preparation, customs clearance, packing, labeling, and freight, bill auditing.
What is supplier management?
Improve performance through supplier evaluation and supplier certification.
What are Strategic partnerships?
successful and trusting relationships with top-performing suppliers
What is demand management?
match demand to available capacity using Material Requirement Planning (MRP), Enterprise Resource Planning (ERP), lean systems, and six sigma.
What is Six Sigma?
A system that stresses a commitment by top management to enable a firm to identify customer expectation and to excel in meeting and exceeding these expectations.
What is Transportation management?
Tradeoffs cost & timing
