Exam 2 Chapter 9

Question 1

Distribution Centers

Answer 1

warehouses that act as intermediaries between factories and customers, shipping directly to customer or to retail stores where products are made available to customers.

Question 2

Inventory

Answer 2

refers to raw materials, work in process, or finished goods that are maintained to support production or satisfy customer demand

Question 3

Supply Chain Operations Reference

Answer 3

framework for understanding the scope of SCM that is based on five basic functions involved in managing a supply chain: plan, source make, deliver, and return.

Question 4

What is the basic purpose of a supply chain?

Answer 4

to coordinate the flow of materials, services, and information among the elements of the supply chain to maximize customer value

Question 5

What are the key functions of the supply chain?

Answer 5

purchasing and procurement of materials
sales and order processing
operations
inventory and materials management
transport
distribution
IT
finance
customer service

Question 6

What is the SCOR model?

Answer 6

framework for understanding the scope of SCM that is based on five basic functions involved with the SC

Question 7

What are the five aspects of the SCOR Model?

Answer 7

Plan
Source
Make
Deliver
Return

Question 8

Define SCM

Answer 8

management of all activities that facilitate the fulfillment of a customer order for a manufactured good

Question 9

What idea did Dell introduce into the area of SCM?

Answer 9

Make-to-Order

Question 10

How does Dell’s make-to-order system function?

Answer 10

Dell pulls component parts into its factories based on actual customer orders and carries no finished goods inventory

Question 11

What are the advantages to Dell’s make-to-order system?

Answer 11

Provides the customer with the newest technology rather than one that has been on the shelf for months

Question 12

Contract manufacturer

Answer 12

firm that specializes in certain types of goods-producing activities such as customized design, assembly, etc.

Question 13

Define efficient supply chains

Answer 13

designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow.

Question 14

Responsive supply chains

Answer 14

focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements

Question 15

Push system

Answer 15

produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale where they are stored as finished goods.

Question 16

What are the advantages of the push system?

Answer 16

immediate availability

reduced transportation costs

Question 17

When do push systems work best?

Answer 17

when sales patterns are consistent

when there are a small number of distribution centers and products

Question 18

Pull system

Answer 18

produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages

Question 19

When are pull systems most effective?

Answer 19

many production facilities
many points of distribution
large number of products

Question 20

Push-pull boundary

Answer 20

point in the supply chain that separates the push system from the pull system

Question 21

Postponments

Answer 21

process of delaying product customization until the product is closer to the customer at the end of the supply chain

Question 22

What is the purpose of a sustainable SC?

Answer 22

reduce costs while helping the environment

Question 23

Define green sustainable supply chain

Answer 23

process of using environmentally friendly inputs and transforming these inputs through change agents-whose by-products can improve or be recycled within the existing environment

Question 24

define manufactured good recovery

Answer 24

recovering manufactured goods that may be discarded

Question 25

define reverse logistics

Answer 25

managing the flow of finished goods, materials, or components that may be unusable or thrown away

Question 26

define delivery reliability

Answer 26

measured by perfect order fulfillment

Question 27

define responsiveness

Answer 27

measured by order fulfillment lead time or perfect delivery fulfillment

Question 28

define customer related measures

Answer 28

focus on the ability of the supply chain to meet customer wants and needs

Question 29

define the bullwhip effect

Answer 29

variation in inventory over time and increases costs and customer service problems

Question 30

define order amplification

Answer 30

occurs when each member of a supply chain “orders up” to buffer its own inventory

Question 31

define multi-site management

Answer 31

process of managing geographically dispersed service-providing facilities

Question 32

vendor managed inventory

Answer 32

vendor monitors and manages inventory for the customer