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
Three levels of firm strategy?
- Corporate strategy
- Business Unit strategy
- Functional strategy
Outline the various stages in the evolution of manufacturing.
- Mass production
- Lean production
- Mass customisation
Explain how mass customisation works.
- Customisation into various different finished products of what are often largely mass-produced products
- uses production philosophy “principle of postponement”
- final value-adding activities in the supply chain are delayed until customer orders are received - as far down as possible
Outline the various scenarios in which we can use combined logistics strategies.
Lean, continuous replenishment - demand is predictable and replenishment lead times are short
Agile, quick response - demand is unpredictable replenishment lead times are short
Lean, planning & execution - demand is predictable and replenishment lead times are long
Leagile - demand is unpredictable and replenishment lead times are long
What are the most frequently reported problems in outsourcing?
- Late delivery
- Consistency of quality
- Reliability
- Responsiveness problems
- Cost realization
- Confidentiality
- Outsourcee being overly polite
Explain what factors would typically be considered in contingency planning in outsourcing arrangements.
Quality certifications
Performance track record
CSR record
Price or cost reduction
Explain the distinction between integration and outsourcing.
supply chain integration is the alignment and interlinking of business processes, outsourcing is handing them off
Warehouse Activities
- Receive goods
- Identify the goods
- Dispatch goods to storage
- Hold goods
- Pick goods
- Marshal the shipment
- Dispatch the shipment
- Operate an information system
