Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

SCM > Exam 1 Module 1-4 > Flashcards

Exam 1 Module 1-4 Flashcards

1
Q

How did Walmart become one of the most successful companies in world

A

They built stores near Dostribution centers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is logistic network design strategy

A

Where do you put stores and DC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q 
What do DC do regarding 
Labor cost
Transport cost
Inventory cost 
Customer service
A

Labor, transport, inventory cost are reduced

Customer service is improved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is an economies of scope

A

It is spreading cost out over more stores ; this is done by build ng more DC to increase networks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What was Walmart’s early networking strat?

A

Locate stores next to DC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the theme throughout SCM

A

How w logistics and supply chain management can be used to create a competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is logistics

A

The management of the flow of inventory and storage inventory;

So that cost are minimized and customer service is maximized

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is supply chain management

A

Integrating business processes between different functions

Customer and suppliers

Suppliers to suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is economies of scale

A

By increasing volume you can decrease the total cost of transporting materials and good

High volume = Low cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the four major component of processes?

A

Inputs
Outputs
Controls
Mechanics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is process improvement and what is it concerned with

A

You get accurate inputs
Better forecasting

Concerned wit increasing speed of the process while reducing the cost of it
Or
Increasing the reliability of the process without changing the order of activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is process redesign

A

Vendor managed inventory - they order for you

No need for forecasting methods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Why do companies outsource?

A

Companies decide that another company can provide more value by providing their services

Ex. 3rd part logistics providers 3PIs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a 3PI

A

A firm that supplies logistics and possibly other scm services

Reduce risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the 4 Rs of supply chain competition

A

Responsiveness
Reliability
Resilience
Relationships

Cost is an extra one

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is responsiveness

A

The ability to change logistics and supply chain management activities quickly

Can be costly

Ex. Changing from serving 10 store out of one dc to serving dc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is reliability

A

Being able to execute consistently on an activity or a process and maintain a target level of performance

Ex. Deliver faster than expected

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How do you measure reliability

A

Standard deviation - measure of uncertainty

Coefficient variation = SD / Mean

Has a large impact on safety stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is safety stock

A

Expected number of units that are in hand just befor the replenishment is received and available for sale

Don’t expect to sell; extra inventory we have in hand just in case of running out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is resilience

A

Being able to deal with unexpected disruptions in the supply chain

Can you recover form problems quickly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is relationships

A

Being able to manage connections, interaction, communication, and maintain trust between customer and suppliers in the supply chain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Why is cost a big factor in logistics

A

Logistics is about cost minimization

If you don’t do it then your competitors will

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is inventory turns

A

It measures inventory performance

Unit sales or cogs / inventory
Shows how many turns a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are inventory holding costs?

A 
Cost of holding inventory 
Space 
Risk
Service cost 
Capital
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What does obsolescence mean regarding service cost

A

More inventory more likely to be obsolete

Ex. You have a lot of iPhone in stock but soon the new one will come out making the others obsolete

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What does capital (the largest cost) mean regarding to inventory holding cost

A

Cost of tying up capital in inventory
Hurdle rate
Minimum rate of return on investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are the four pillars of supply chain excellence

A

Human Resources
Organizational design
Information tech
Organizational measurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is efficiency in scm

A

To reduce cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is effectiveness in scm

A

Providing value to customers

30
Q

What happened in 1960 in scm

A

Activities were fragmented and everything is very inefficient

31
Q

1980s considering scm

A

Activities began to be integrated
Truck delivering item would leave empty = most expensive thing is to transport empty air

Made more efficient by dilevery to train and then outing things back into truck

32
Q

1990 in scm

A

Everything is fully integrated throughout activity

33
Q

Supply chain defined

A

Set of three or more organizations directly linked by one or more of the upstream and downstream FLOWS of product, services, finances, and information from a source to a customer

34
Q

What is the 80-20 rule

A

80 percent sales come from 20 percent suppliers

Therefore you want to know your suppliers and prioritize the relationship

35
Q

How to assess risks

A

Usually cost but generally you use past experience and learn from them

36
Q

What is risk prevention

A

To prevent risk

37
Q

Risk management

A

Management of the risk

38
Q

Total cost ownership what is it

A

Company has to think about the cost when doing the things

39
Q

Total cost ownership cost

A 
Acquisition 
Transportation
Management/Administrative 
Maintenance 
Operating 
Inventory 
Technical support 
Training 
Disposal
40
Q

What 3 things make up customer service

A

Pre transaction
Transaction
Post transaction

41
Q

What happens during pre transactions

A

Concerns how the policies, organizational structure l, and culture if a company affects the customer

How easy it is for a shopper to investigate my product

42
Q

What does transaction mean

A

Service includes common metric of customer service such as

%of items in stock, %of time an item is in stock, fill rate, lead time

43
Q

What happens in post transaction

A

Includes such factors as availability of spare parts, technical support, feedback and complaint process

Having to purchase a part to fix item you purchased

44
Q

A leveling of production cost between China Mexico and the US means that us firms will increasingly focus on ________ to be competitive

A

Agility flexibility responsiveness

45
Q

Considering measure in stock inventory: what does Item fill rate mean

A

Tells you the % of demand fulfilled from in hand inventory

of items out of stock can tell you the percentage of time in stock but cannot tell you the demand you are loosing

46
Q

How do you calculate perpetual inventory

A

Amount received - amount sold

47
Q

What does perpetual inventory do

A

Measures % of time in stock and % of items in stock

48
Q

What is phantom inventory

A

The system thinks there is more inventory than there really is

It can be a problem bc it won’t place order bc it thinks you have the inventory when you don’t

49
Q

Assume an item is in stock for 2 weeks but out of stock on the 3 week. We would use this info to calculate

A

Percentage of time in stock

50
Q

Perpetual inventory is one of the major ways that __________ and percentage of items in stock are measured

A

Percentage of time in stock

51
Q

What can happen in stock outs regarding customers

A 
Switch behavior 
Try new item 
Delay purchase 
Impulse buy 
May end up losing customer
52
Q

Retail shelf is very expensive bc

A

Opportunity cost of alt product

53
Q

Normal distribution

A

Bell curve
You only need to parameter
-mean : average
- standard deviation : estimates by variance

54
Q

+ or - 1 standard deviation from the mean is what percent

A

68

55
Q

+ or - 2 standard deviation from the mean is what percentage

A

95

56
Q

+ or - 3 standard deviation from the mean is what percentage

A

99

57
Q

If you want to compute an optimal service level for stocking inventory the correct formula is what

A

Cost of not having enough per unit / sum of the cost and having too much and the cost of not having enough

58
Q

If store manager says “ I shoot for a 95 percent service level” what do they mean

A

When a customer wants a product she want it to be these st least 95 percent of the time

59
Q

What is logistics the seven r definition

A 
Getting the 
right product
right customer  
right quantity
 right condition at 
 right place at the 
right time at the 
right cost
60
Q

What is the difference between SCM and Logistics

A

Scm is the flow of things from the suppliers to suppliers through many entity to end user

Logistics
Part of the scm

61
Q

What is more broader scm or logistics

A

Scm

62
Q

Why is logistics important to the economy

A

It is a widely accepted barometer used to gauge the rate of growth in economy

Total logistics cost increase a little from 2016 to 2017
7.6 to 7.7

Munched improves from 1979 (19)

Deregulation of transport was the cost

63
Q

Where is the money from logistics going to

A

Transportation essentially has 2/3 of money spent

Specifically motor carriers are the most spent

64
Q

Why is water shipping cheaper

A

Bc more volume at once = actual cost Lower

65
Q

What are the 5 types of economic utility

A 
Form
Possession 
Quantity 
Place 
Time
66
Q

What are the logistics interfaces

A

Manufacturing
Accounting
Finance
Marketing and sale

67
Q

What are the 4ps (marketing mix)

A

Price
Product
Promotion
Place

68
Q

Relationship be required inventory level and order cycle length relationship

A

OC goes up inventory goes up
Proportional

Ex. Increasing order cycles from 1 to 5 days will cause inventory to go up

69
Q

Relationship of the cost of lost sales to inventory cost

A

Want to be equilibrium

70
Q

Relationship of the cost of lost sale to transportation cost

A

Transportation cost up = cost of lost sales down

71
Q

Relationship with product dollar value to various logistics cost

A

As dollar value of product up = spend more on packaging And transportation up

High value of product goes up = inventory cost up

Density larger = cost up

72
Q

Types of logistics

A

Business
Military
Event
Service

SCM (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions