Exam #2 Flashcards
Triple A meaning of agility?
Respond to short-term changes in demand or supply quickly; handle external disruptions smoothly.
> Promote flow of information with suppliers and customers. >Develop collaborative relationships with suppliers.
Design for postponement.
Build inventory buffers by maintaining a stockpile
of inexpensive but key components.
Have a dependable logistics system o r partner. >Draw up contingency plans and develop crisis
Management teams.
Triple A meaning of adaptability?
Adjust supply chain’s design to meet structural shifts in markets; modify supply network to strategies, products, and technologies.
> Monitor economies all over the world to spot new supply bases and markets.
Use intermediaries to develop fresh suppliers and logistics infrastructure.
Evaluate needs of ultimate consumers-not just immediate customers.
Create flexible product designs.
Determine where companies’products stand in terms o f
technology cycles and product life cycles.
Triple A meaning of alignment?
Create incentives for better performance.
> Exchange information and knowledge freely with vendors and customers.
Lay down roles, tasks, and responsibilities clearly for sup- pliers and customers.
Equitably share risks, costs, and gains o f improvement initiatives.
Adaptability in reading
Microsoft had to meet a deadline for christmas shoppers so they adopted there production to places in Hungary and Mexico, close to their big markets of america and Europe. They were able to adapt their production to meet customer demand.
Alignment in reading
HP had a problem with low inventory which caused longer lead times for customers, they then raised their inventory and were able to meet customer requirements. The issue was their alignment of efficiency of customer demands did not align with the company’s vision. All divisions must align to promote profit and customer satisfaction.
Understand what is the philosophy of ‘lean manufacturing’. Which company is credited with popularizing this philosophy?
Doing more with less. Seeks to minimize resources of components and work in progress and to move towards a just in time environment wherever possible. Toyota was credited for this unique lean manufacturing style of supply chain.
In what situations does lean manufacturing work best for firms?
It can work well with standard products and relatively predictable demand.
Know what is meant by an ‘agile supply chain’. When are agile supply chains needed most?
That can respond in shorter time frames both in terms of volume change and variety change, and hence meet the customer needs more rapidly. Primary focus is on time.
Understand the four generic supply chain strategies that firms can use for various type of products. What is the supply and demand characteristic for each type of strategy? Know the typical products for which each type of strategy can be used.
- Lean has a long supply lead time and predictable demand (Plan and optimize) Ex. Cars, airplanes, etc.
- Kanban has a short supply lead time and a predictable demand (Continuous Replenishment) Ex. Commodities, etc.
- Hybrid has a long supply lead time and a unpredictable demand (De-couple through postponement) Ex. High tech, new models, etc.
- Agile has a short supply lead time and a unpredictable demand (Quick response) Ex. Fashion clothes, etc.
Demand forecast updating
The effect of downstream vendors making a forecast and upstream vendors misreading and making a forecast that would overstate actual demand. This causes the ultimate bullwhip affect.
Order batching
This affect is when companies order batches of inventory and often causes congestion in the production process of suppliers that eventually damages the upstream vendors forecast predictions.
Rationing
When demand exceeds supply the suppliers often ration their products to vendors, mainly not meeting their vendors request. Coming short, but thats what they have.
