Final Exam Flashcards
the process of optimizing the shipment of goods and services from supplier to customer
supply chain management
goals of supply chain management
optimize production decrease manufacturing time minimize inventory streamline order fulfillment reduce cost
ultimate goal of supply chain management
to match supply with demand
what do we want with scm
the right parts in the right location in the right quantity at the right time
scm management is hard to do because
demand is volatile
can gain a ________ through sc efficiency
competitive advantage
rewards for good supply chain
deliver orders on time
keeping inventory to a minimum
efficient manufacturing
tradeoffs
high quality suppliers vs. low cost suppliers
efficiency vs. reactive
long term contract stability vs. short term flexibility
economies of scale vs. inventory level
low cost of mass production vs. flexible manufacturing and customization
global vs. local
the shift from vertical integration to focusing on ________ has led to supply chain management as we know it today
core competencies
why is scm so difficult
variation in demand and/or supply
changing customer requirements
decreasing product life cycles
conflicting objectives inside the firm
efficient supply chain would be better suited for
mass production
a responsive supply chain would be better suited for
very volatile demand
the further away you get from the consumer, the bigger the range in demand is
bullwhip effect; caused by a lack of communication and trust (everyone in the chain is trying to avoid a stock out)
hold inventory and wait for customers to come and buy
push manufacturing (traditional supply chain)
dont start manufacturing until you get an order
pull manufacturing (need to be able to react quickly and have short leads times to get to customer)
why is scm so important
firm’s main purpose is to satisfy customers
when customers want something the firm must be able to deliver at that time
cost of a stockout can be devastating
enormous effect on the financial performance of a firm
poor supply chains lead to
higher inventory levels
lower revenue
higher costs
lower profits
the type of supply chain is based on
the type of product
innovative products need a _____ sc and functional products need a _____ sc
innovative
functional
characteristics of an innovative product/sc
short product life cycles; unpredictable demand; high margins; higher penalty for stockouts; high risk of obsolescence and excess inventory
most important factor for success for an innovative supply chain
responsiveness; need flexibility in manufacturing to react quickly to market demand
characteristics of a functional product/sc
long product life cycles; predictable demand; low product variability; lower profit margin; matching supply and demand is fairly easy
most important factor for success for a functional supply chain
efficiency; allows the firm to concentrate on minimizing supply chain costs
in addition to cost effective and fast, supply chains need to be
agile, adaptable, and aligned
methods to achieve agility
all sc firms have access to real time supply and demand data
share best practices between firms in the sc
keep inventory of non-custom parts, allowing you to quickly ramp up production based on the configuration high in demand
methods to achieve adaptability
be aware of your surroundings
design the supply chain based on your product type
methods to achieve alignment
all sc firms have access to forecasts, sales data, and business plans
clarify the end results customers expect from the product
clarify the end the result your firm expects from the supply chain
develop win/win relationships
efficient, predictability, and low cost describe a ______ sc
functional
making a prediction on what will occur in the future based on past and present data
forecasting
the foundation of any successful operations team
forecasting
if the forecast is not accurate or consistent then the _____ and ______ are put under great stress
supply chain
inventory
relies on subjective opinions from one or more experts
qualitative forecasting methods
relies on data and analytical techniques
quantitative forecasting methods
models that predict future demand based on past data
time series
models that use statistical techniques to establish relationships between various items and demadn
causal relationships
models that incorporate some randomness and non-linear effects
simulation
