Exam 2 Flashcards
1
Q
Waiting line goals
A
Finding balance between long lines and idle paid staff
How many servers are required?
2
Q
4 parts of waiting line
A
Customers
Servers
Waiting lines
Service facility
3
Q
Infinite pool of customers
A
Odds of a customer coming in are the same as one walking out
4
Q
Degrees of variability
A
Prepared/unprepared customer Big/small orders High/low maintenance customer cash/credit Arrival rates
5
Q
Balking vs reneging
A
Balking- not getting in a line because it is too long
Reneging- waiting in line and then leaving
6
Q
Finite pool of customers
A
Every customer in the store decreases the chance of another customer arriving
7
Q
Jockeying
A
Line jumping
8
Q
Priority discipline rules
A
1st come 1st serve Earliest due date Emergencies Reservations Preemptive discipline- VIP lines
9
Q
Integration
A
Bringing together groups that were separated to improve
10
Q
Importance of integration
A
The only way for supply chain partners to achieve effectiveness efficiency and adaptibility
11
Q
Requirement of integration
A
Coordination and communication from customer
12
Q
Loser mentality
A
Allowing yourself to make mistakes
13
Q
Pull system characteristics
A
Low inventories Demand driven system Flexible manufacturing Closer ties with supplier Forecasting miscalculations Tough to sell Risky customer service rates
14
Q
Push system characteristics
A
High inventories Low customisation-con Shorter lead times-pro Mistakes are okay Forecasting miscalculations-con
15
Q
Postponement
A
Combine push and pull, standardised manufacturing but customise the final assembly
16
Q
Lean manufacturing
A
Production philosophy to meet customer demand and desires with minimal inventory levels and waste
17
Q
Keys to clean manufacturing
A
High performance quality Consistent quality Quality at the source- employees inspecting Continuous improvement Poka yoke Closer supplier ties Small lot sizes Work standards
18
Q
Rocks and water analogy
A
Rocks are a capacity problem, water is the service supplier. Boat cannot move through rocks it water shrinks, but they try to eliminate those rocks instead of trying to float above rocks
19
Q
Bullwhip effect
A
Constant demand levels but fluctuating supply levels
20
Q
Causes of bullwhip effect
A
Poor forecasting Order batching Price fluctuating Rationing- partial order Shortage gaming
21
Q
Sales cycle problem
A
Customers can predict when an item will be on sale and only buy it when it is on sale
22
Q
Order batching problem
A
Supplier thinks lower shipment orders are due to low demand not because companies are using leftover inventory
23
Q
Rationing vs gaming
A
Rationing- retailer ordering less from supplier than demand
Gaming- retailer inflates order sizes to avoid shortage
24
Q
5 methods for controlling bullwhip effect
A
Everyday low pricing Vendor management inventory systems Information sharing Strong supplier relationships Lean manufacturing
25
8 supply chain processes
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Demand management
Customer relationship management
Customer service management
Order fulfillment
Manufacturing flow management
Product development
Returns management
Supplier relationship management
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26
Global profit motivations
Reaching new customers
Manage risk of low sales in one market with another
Learn about new products, sale, and distribution options
27
Intellectual property
Work that is the result of creativity, to which one has the rights and may apply for a patent for
28
Contract manufacturing
Hiring another company to do the manufacturing for you
29
Near sourcing
Faster in delivery, go where labour costs are higher but save money on gas
Ex. Walmart moving from China to Mexico
30
Global brand strategy
Preparing for differences in packaging laws, environmental standards, retail systems, consumer tastes
31
Benefits of external partners
Speed- facilities ready in place
Expertise
Resource utilisation
Focus on core competencies
32
Risks of external partners
Quality control
Intellectual property
Business practices
Loss of strategic flexibility- you give up some supply chain
33
Manufacturing audits
A process where companies examine whether or not their manufacturing contracts abide by the rules
34
Currency exchange considerations
Must decide between high risk/ high reward and low risk/low reward
35
Infrastructure
Structures and equipment used for moving goods
36
Customs trade partnership against terrorism
Put into place after 9/11
Background checks and documentation of anyone who handles the products
Data mining program
37
Third party logistics company
An organisation that manages and executes a logistics function on behalf of another company
38
Electronic manufacturing services industry
Companies that take on numerous supply chain responsibilities associated with the manufacturing of electronic items
39
EMS advantages
Fast start
Strong start- quality control
Cost advantages
Flexibility
40
Customs house broker
A contractor that helps a clients goods clear customs in a foreign country
41
Freight forwarder
A contractor that helps companies organise the shipment of goods through the supply chain
42
Incoterms
A series of commercial terms established by the ICC to facilitate communication in commercial transactions
43
Commercial invoice
Summation of items being shipped, parties involved, cargo values and other info
44
Bill of lading
Contract between shipper and carrier, receipt of goods, certificate of ownership
45
Packing list
Describes all items in a box such as weight and dimensions
46
Shippers export declaration
Document used by the Customsto track all items that are exported and types of exports
Required of cargo > $2500
47
Validated export license
US government authorisation for controlled or policed items, drugs and agriculture
48
Duty drawbacks
Utilised when an item is imported and re exported
Method of avoiding tariffs
49
Free trade zone
Where acceptable items can enter country duty free, usually re exported
50
Art of international commerce examples
Food- FDA approved
Textile- tariffs
Toy- safety standards
51
4 retailing options
Brick and mortar
Online and e tailing
Bricks and clicks
Clicks and calls
52
Ommi channel retailing
Fully provides the customer with information both online and in store ad to what products they have, prices
53
Drop shippers
Manufacturers and whole sales sell directly to customers
54
Collaborating,
Planning,
Forecasting,
Rescheduling
Effort by supply chain partners to share data to reduce supply chain costs
55
Vendor managed inventory
Supplier controls inventory and accepts negotiated responsibilities such as monitoring and restocking
56
Scan based trading
Retailers don’t pay vendors until customer buys product, the vendor owns product and retailers sell for the vendor
57
Prototype stores
Series of stores that have a common design, construction and layout
58
Elements of corporate social responsibility
Legal and ethical
Serves the community
Environmental sustainability
59
Reasons for CSR
Avoid legal issues
Public relations
business risks- political, resource, population growth, climate change
Increased profits, Lower costs
60
How SCM helps companies become socially responsible
Eliminate waste
Make life better for humans
Better organisational operations
61
CSR issues to consider
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Money is important
Regional solutions
Innovation
Media and special interests
Impact on stakeholders
```
62
CSR challenges
What’s the right thing to do?
Monitoring suppliers
Tracking outcomes in supply Chain
63
Ethical issues in SCM
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Obeying laws
Ethical business partners
Treating suppliers well
Conflicts of interest
Breaches of data
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64
Global health issues
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Logistics challenges
Procurement challenges
Operations challenges
SCM talent pool
No single solution
Lack of communication and coordination
Media and social media coverages
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65
4 tools for managing ethical supply chain
Continued education on ethics
Security in supply chain
Whistleblower program
Monitoring programs
66
SA 8000
Certification that focuses on social responsibility in workplace
67
Sustainability
Meeting needs of present and not compromising future generations meeting their needs
68
ISO 14000
Certification for companies committed to sustainability at an organisational level
69
Zara Ortega lesson
You need 5 fingers touching factory and 5 touching customer
70
Zara 3 principles
Close the communication loop
Stick to a rhythm across chain
Leverage capital assets and increase flexibility
71
Secret to Zara’s success
Sustains an environment that optimises entire supply chain instead of each step
72
Humanitarian examples
Kenya and Malaria- people selling nets instead of using to protect themselves from malaria. They needed money for food
Clinton Gates-needed help paying for antiviral drugs, got them cheaper from Cipla, they were more expensive before to offset organisations that don’t pay bills
73
Useless items
Giving huge winter coats to Haiti because they’ve been sitting on shelves
Giving drugs to people who don’t need them because they will expire soon
74
Mandated spend
Benefactor says exactly how he wants you to use the items
75
End of pipe solutions
Solutions to deal with outputs of supply chain, disposal
Cradle to grave design or cradle to cradle design
76
Order of environmental burden
Reduce, reuse, recycle, landfill
