Exam Review Flashcards
What is a supply chain?
Set of 3+ orgs/individuals involved in the up and downstream flows of products, services, etc. from a source to a customer
5 Important Factors in Supply Chain
- SC includes all activities & processes to supply a P/S to a final customer
- Any # of companies can be linked in the supply chain
- A cusromer ca be a supplier to another customer, so the chain can have more than 1 supplier-customer relationship
- SC can contain a number of intermediaries (distributors) such as wholesalers, warehousers and retailers
- P/S flow from supplier -> customer and demand flows from customer -> supplier
4 Objectives of a Firm wishing to maximize profit?
- Best customer service
- Lowest production cost
- Lowest inventory management
- Lowest distribution cost
Describe how objectives of marketing, production and finance are in conflict over customer service, disruption to production and inventories.
Each one has own responsibilities
- Marketing wants high rev & high prod availability
- Prod wants low prod cost, high-level prod, and long prod runs
- Finance wants low investment & cost, few fixed costs, and low inventories
Cycle View vs. Push/Pull View
CYCLE
- processes are series of cycles, first must finish before second begins
- specifies roles & responsibilities of each member & desired outcome of each process
PUSH/PULL
- Push - in anticipation of a customer order
- Pull - initiated by customer order
3 main types of channel relationships
- Direct
- Extended (s’s s and c’s c)
- Ultimate
What is logistics?
Having the right thing at the right place at the right time
- planning aspects of the SC
Main objectives of logistics?
RMMMQ
- Rapid Response
- Minimum variance
- Minimum inventory
- Movement consolidation
- Qual improvement
What are the 4 logistics concepts?
STAT
- Systems concept - everything is a system & works tg
- Total Cost concept - same but measure by cost
- After-Tax concept - same but after tax profit
- Trade-Off concept
Main elements of a logistics system
TWIPI
- Transportation
- Warehousing
- Inventory Mgmt
- Packing & utilization
- Information & communication
Define & explain logistisc cost
LOOK UP LOG COST DEF
- high fuel prices & port delays = higher transportation cost
- complex international trade laws & security measurements threaten to lengthen delivery times & increase warehousing costs
Explain the difference between outsourcing & offshoring
Outsourcing is transfering mgmt & delivery to a 3rd party
Offshoring is transfering processes to a lower-cost location - company may still own +control process
- outsource partner can offshore
LPI
Logistics performance index, ranks companies on 6 areas: customs, infrastructure, intl shipments, logistics competence, tracking & tracing, and timeliness
Who thinks global and acts local?
McDonald’s and Starbucks
Define ethnocentricity, polycentricity, and geocentricity
Ethnocentricity - company doing business abroad thinks only in terms of its home country environment
Polycentricity - company adopts host country perspective
Geocentricity - company acts independent of geography & adopts global perspective