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Supply Chain Management > Final Blueprint > Flashcards

Final Blueprint Flashcards

1
Q

Materials and supplies that a firm carries either to sell or to provide inputs or supplies to the production process

A

Inventory

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2
Q

Quantities of goods in stock is known as

A

Inventory

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3
Q

What are 6 characteristics of service operations

A

Customer Participation
Simultaneity
Perishability
Intangibility
Heterogeneity
Nontransferable

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4
Q

What are the two forms of inventory

A

Accounting and Operational Inventories

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5
Q

Purchased items received, but not yet transformed

A

Raw Materials

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6
Q

Raw materials that have entered the transformation process and are in process or waiting

A

Work-in-progress

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7
Q

Products of the transformation process that are ready to be sold

A

Finished Goods

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8
Q

Why is inventory management important throughout the entire supply chain?

A

Inventory management generates valuable data that can be used for forecasting, demand planning, and supply chain optimization.

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9
Q

The planning and controlling of inventories to meet the competitive priorities of the organization.

A

Inventory Management

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10
Q

What are some of the pressures for small inventories

A

Inventory holding cost
Cost of capital
Storage and handling costs
Taxes
Insurance
Shrinkage
Pilferage
Obsolescence
Deterioration

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11
Q

What are some reasons for carrying inventory

A

1) Protect against lead time demand
2) Maintain independence of operations
3) Balance supply and demand
4) Buffer uncertainty (Safety Stock)
5) Economic purchase orders i.e buying in bulk to take advantage of reduced cost/unit

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12
Q

What are the 5 different types of inventory we have discussed

A

Cycle Stock
Safety Stock
Anticipation inventory
Pipeline inventory
Maintenance, Repair and Operating Items (MRO)

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13
Q

Inventory ready for immediate use, typically, produced in batches is known as

A

Cycle Stock

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14
Q

Extra inventory carried for uncertainties in supply and demand. This is also known as buffer stock

A

Safety Stock

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15
Q

Inventory carried in anticipation of events. This helps to smooth out the flow of products in supply chain
Also can be known as seasonal or hedge inventory

A

Anticipation Inventory

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16
Q

Inventory in transit
Exists because points of supply and demand are not the same is also known as transportation inventory

A

Pipeline Inventory

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17
Q

Inventory not directly related to product creation is known as

A

Maintenance, Repair and Operating Items (MRO)

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18
Q

What are the 3 inventory costs

A

Holding
Ordering
Shortage

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19
Q

Costs that vary with the amount of inventory held typically described as a % of inventory value
Also called carrying cost

A

Holding Cost

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20
Q

Cost involved in placing an order also referred to as “setup cost”

A

Ordering Cost

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21
Q

This cost occurs when we run out of stock

A

Shortage Cost

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22
Q

How do we determine how much to order using the Fixed-Order Quantity system?

A

Determined using the EOQ Formula

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23
Q

When do we determine to order using the Fixed-Order Quantity system?

A

When the Inventory Position (IP) reduces to the Reorder Point (ROP), an order is placed for the amount determined by the EOQ formula

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24
Q

How do we determine how much to order using the Fixed-time period system?

A

The order quantity is determined by subtracting the current inventory position (IP) from the Target Level (R)

Q=IP-R

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25
Q

How do we determine when to order when using a fixed time period system?

A

Orders are placed at fixed time intervals (T) when the Inventory Position (IP) is checked. “T” is pre-determined, i.e. every 2 weeks, every 30 days

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26
Q

An order of fixed quantity, Q, is placed when inventory drops to a reorder point, ROP. What system do we use to calculate the ROP?

A

Fixed-Order Quantity System “Q” System

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27
Q

Inventory is checked in fixed time periods, T, and the quantity ordered varies.What system is used to calcuate this answer?

A

Fixed-Time Period System “P” System

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28
Q

An order is only placed when inventory drops to a specified level, known as?

A

Reorder Point (ROP)

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29
Q

T/F-The amount requested in each order placed will always be the same quantity when used the fixed-order quantity system

A

True

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30
Q

T/F- the amount requested in each order placed will vary and is based refilling back up to the target inventory level “R” when using the fixed time period system

A

True

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31
Q

Demand for a finished product is known as

A

Independent Demand

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32
Q

Demand for components parts or subassemblies is known as

A

Dependent Demand

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33
Q

Relationships between independent and dependent demand is shown in a

A

Bill of Materials (BOM)

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34
Q

T/F- Dependent demand order quantities can be computed via an Materials Requirements Planning system (MRP)

A

True

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35
Q

An inventory control system used to compute order quantities for dependent demand inventory items is known as

A

Materials Requirements Planning

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36
Q

A list that shows all of the raw materials and subassemblies that go into a product. It also shows the quantities and relationships of items needed to make a final product

A

Bill of Materials (BOM)

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37
Q

Inventory management tool that classifies inventory based on its degree of importance. It gives priority to important inventory items

A

ABC Classification

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38
Q

T/F- Based on Pareto’s Law (80/20) – 20% of the inventory items (part numbers) account for 80% of the total inventory value

A

True

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39
Q

Idk just know

A

High Priority Items – Class A (“vital few”), Moderate Priority – Class B, and Low Priority – Class C (“trivial many”)

40
Q

What formula provides the ideal quantity to be purchased that minimizes Total Cost.

A

EOQ Formula

41
Q

What does EOQ stand for

A

Economic Order Quantity

42
Q

***** is minimized when the ordering cost equals the holding cost. It is at this intersection that the optimal value of “Q” or EOQ is revealed.

A

Total Cost

43
Q

storage capacity and costs should be considered when ordering large quantities this is known as

A

Capacity Constraints

44
Q

Total cost changes little on either side of the EOQ
—managers can adjust to accommodate needs. What is the term that describes this

A

EOQ Adjustments

45
Q

The most common metrics used to measure inventory are (4)

A

Units
Dollars
Weeks of Supply
Inventory Turnover

46
Q

Vendor is responsible for managing the inventory located at a customer’s facility what is this known as

A

Vendor Managed Inventory (VMI)

47
Q

A management tool used to address, improve, and communicate supply chain management decisions within a company, with their suppliers, and with their customers.
A model that describes the business processes required to satisfy a customer’s demands.
Is Known as?

A

SCOR

48
Q

What does SCOR stand for?

A

Supply Chain Operational Reference

49
Q

T/F- SCOR is a process framework

A

True

50
Q

What type of frameworks deliver the known concepts of business process reengineering
- benchmarking
- best practices and
- organizational design in a cross-functional framework

A

Process Frameworks

51
Q

Why use SCOR?

A
  • Helps explain the processes along the entire supply chain
  • Provides a basis for how to improve processes along the entire supply chain
  • It is has been described as the “most promising model for supply chain strategic decision making”
52
Q

T/F- SCOR has been described as the “most promising model for supply chain strategic decision making”

A

True

53
Q

Who developed the SCOR model?

A

Developed by the Supply Chain Council along with 70 of the world’s leading manufacturing companies

54
Q

Who uses the SCOR model?

A

Manufacturing and Service Firms

55
Q

T/F- Intel was one of the first major US corporations to adopt SCOR (~1999)

A

True

56
Q

Benefits recorded using the SCOR model included for this type of business is
faster cycle times
less inventories
improved supply chain visibility
timely access to important customer information
Is this a manufacturing example or service

A

Manufacturing

57
Q

T/F- A service example of using the SCOR model is A New York hospital used the SCOR model to define, measure, and improve SC

A

True

58
Q

Benefits recorded using the SCOR model included for this type of business is
less inventories
increased capacity
increase in demand
reduced labor cost
reduced prep times for key procedures
Is this a manufacturing example or service

A

Service

59
Q

T/F- The SCOR process framework combines 4 techniques into one integrated approach

A

True

60
Q

What part of the SCOR process framework captures the “as-is” business activity and design the future “to be” state

A

Business Process Re-engineering

61
Q

What part of the SCOR process framework quantifies relative performance of similar supply chains and establish internal targets

A

Performance Benachmarking

62
Q

What part of the SCOR process framework identifies practices and software solutions that result in significantly better performance

A

Best Practices Analysis

63
Q

What part of the SCOR process framework technique assesses skills and performance needs and align staff and staffing needs to internal targets

A

Organizational Design

64
Q

What is the process reference framework for business process re-engineering

A

Processes

65
Q

What is the process reference framework for performance benchmarking?

A

Performance (metrics)

66
Q

What is the process reference framework that identifies practices and software solutions that result in significantly better performance

A

Practices

67
Q

What is the process framework that assesses skills and performance needs and align staff and staffing needs to internal targets

A

People (skills)

68
Q

SCOR defines this word as The processes that plan and execute the acquisition of materials, transformation of materials in sellable products, delivery and return of products and services in support of customer orders

A

SCOR definition of Supply Chain

69
Q

End-to-End Supply Chain

A

Supplier’s Supplier - Components PLAN
Supplier- Subassemblies PLAN
My organization- manufactures PLAN
Customer-Retailer PLAN
Customer’s Customer- Consumer

70
Q

What are the SCOR Processes

A

Plan
Source
Make
Deliver
Return
Enable

71
Q

Which SCOR process objective is determining capacity, materials, staffing 
and resource needed to achieve supply chain targets and 
the identification of corrective actions to address shortages 
in supply or demand.

A

Plan

72
Q

Which SCOR process objective is the ordering, receipt, inspection and transfer of raw materials, 
subassemblies, products, packaging and/or services
-Used for receiving from suppliers and/or from internal nodes

A

Source

73
Q

Which SCOR process objective is The conversion of adding value to products through mixing, separating, forming, machining, and chemical processes, repair, refurbishment, and/or decomposition

A

Make

74
Q

What is an example of the SCOR process plan?

A

Forecasting, S&OP, MRP? Likely “Plan” in SCOR

75
Q

What is an example of the SCOR process Source

A

Receiving processes? Probably “Source” in SCOR

76
Q

What is an example of the SCOR process “Make”

A

Item number change? Probably “Make” in SCOR

77
Q

Which SCOR process objective is the (customer-facing) process of managing orders, scheduling deliveries, picking, packing and shipping and invoicing customers for products and services delivered

A

Deliver

78
Q

Which SCOR process objective is returning materials or products to address defects in product, ordering, or manufacturing, or to perform upkeep activities (addresses both physical and logical returns).

A

Return

79
Q

What is an example of the SCOR process Deliver

A

Order taking or Shipping? Probably Deliver in SCOR

80
Q

What is an example of the SCOR process Return

A

Reverse material flow? Probably “Return” in SCOR

81
Q

How does SCOR help companies that have implemented the model?

A
  • Translates business strategy to supply chain strategy (Formulate strat)
  • Measure supply chain performance
  • Understand relative performance compared to competitors 
– How are we doing compared to our supply chain strategy
  • Identify and monitor processes that most likely cause the 
performance gaps – What improvement targets should we pursue?
82
Q

A characteristic to describe a strategy. 
Performance attributes serve as classification for metrics and 
formulate strategic direction

A

Performance Attribute

83
Q

A metric to measure the 
overall performance or state-of-affairs. SCOR level-1 metrics 
are considered KPIs

A

Key Performance Indicator

84
Q

A standard of measurement is known as

A

Metric

85
Q

An observation that reduces the amount 
of uncertainty about the value of a quantity is known as

A

Measurement

86
Q

JUST KNOW

A

SCOR METRICS- Level 1 are first selected and then diagnostic metrics follow Level 2 and Level 3

87
Q

What monitors and diagnoses overall supply chain health

A

SCOR Metrics

88
Q

A visual display of the most important information 
needed to achieve one or more objectives, consolidated and 
arranged in a single view

A

Scorecard

89
Q

A scorecard providing metrics related to 
four organizational strategies: financial, customer satisfaction, internal process excellence/efficiency, and employee learning 
and growth

A

Balanced Scorecard

90
Q

A scorecard providing metrics related to the five 
SCOR supply chain strategies (attributes): reliability, responsiveness, Agility, cost and assets

A

SCORcard

91
Q

Comparing an organization’s performance, products, practices, and/or services with those of other organizations that operate in the same or comparable industry

A

Benchmarking

92
Q

What are 3 SCORcard metric requirements

A

Measurable and quantifiable
Linkage to responsibility
Ensure metric is well-defined

93
Q

What SCORcard metric requirement should Avoid ‘feel good’ metrics like supplier satisfaction or customer satisfaction, unless they are an aggregation of well-defined detail metrics. Framework-based metrics simplify the selection process

A

Measurable and quantifiable

94
Q

What SCORcard metric requirement should Avoid metrics that have no impact on performance reviews (supplier or employee), ensure the metric is linked to the (right) process owner at the right level

A

Linkage to responsibility

95
Q

Multiple interpretations of a metric may lead to ‘workarounds’ and negation of the effort. SCOR metric this is known as

A

Ensure metric

96
Q
A

Supply Chain Management (11 decks)

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