Course 1 Supply Chain Planning and Strategy Flashcards
What are the three main flows in a supply chain?
Information, products, and funds.
Why is accurate and timely information critical in a supply chain?
It ensures efficient operations, reduces costs, and prevents issues like overstocking or stockouts.
What is the primary objective of a supply chain?
To maximize profitability by efficiently meeting customer demand.
What are the key components of an income statement?
Sales revenue, cost of goods sold (COGS), gross profit, operating expenses, and net income.
How do assets and liabilities differ on a balance sheet?
Assets are resources owned (e.g., buildings, equipment); liabilities are obligations (e.g., loans, accounts payable).
How do financial measures link to supply chain performance?
Income statements and balance sheets help identify cost-saving opportunities and inefficiencies in the supply chain.
What is a competitive strategy?
A plan to attract and retain customers by meeting their needs better than competitors.
What are the three main factors customers consider in a supply chain?
Cost, response time (shipping/delivery), and differentiation (how the product stands out).
What is competitive advantage?
A company’s ability to attract and retain customers by offering better value, quality, or service than competitors.
What are the five stages of a product’s lifecycle?
Development, market introduction, production, distribution, and after-market service.
What are the three functional strategies in a supply chain?
Product/service development, marketing/sales, and supply chain strategy (procurement, production, distribution).
What are strategic supply chain decisions?
Facility locations, transportation modes, inventory management, and information systems.
What is supply chain responsiveness?
The ability to meet varying demand, handle short lead times, and offer a wide product variety.
What is supply chain efficiency?
Maximizing resource use to reduce costs, often trading off with responsiveness.
What is the inverse relationship in supply chains?
Increasing responsiveness (e.g., faster delivery) typically raises costs, reducing efficiency.
What is the difference between push and pull strategies?
Push produces based on forecasts; pull produces based on actual customer orders.
What are the risks of a push strategy?
Overstocking (if demand is lower than forecast) or stockouts (if demand is higher).
What is assemble-to-order/postponement?
Combines push (stocking components) and pull (final assembly based on orders).
What are the three types of production inventory?
Raw materials, work-in-process (WIP), and finished goods.
What is indirect material (MRO)?
Items used in production but not part of the final product (e.g., safety gear, tools).
What is the trade-off in inventory management?
High inventory ensures quick response but increases carrying costs; low inventory reduces costs but risks stockouts.
How does transportation impact costs?
Faster methods (e.g., air freight) cost more; slower methods (e.g., ships) cost less.
What factors are considered in choosing transportation?
Cost, speed, reliability, and product type (e.g., perishable vs. durable).
What is the role of logistics?
Managing the movement and storage of goods, including routing and network optimization.
