Final Exam

Question 1

the process of optimizing the shipment of goods and services from supplier to customer

Answer 1

supply chain management

Question 2

goals of supply chain management

Answer 2

optimize production
decrease manufacturing time
minimize inventory
streamline order fulfillment
reduce cost

Question 3

ultimate goal of supply chain management

Answer 3

to match supply with demand

Question 4

what do we want with scm

Answer 4

the right parts in the right location in the right quantity at the right time

Question 5

scm management is hard to do because

Answer 5

demand is volatile

Question 6

can gain a ________ through sc efficiency

Answer 6

competitive advantage

Question 7

rewards for good supply chain

Answer 7

deliver orders on time
keeping inventory to a minimum
efficient manufacturing

Question 8

tradeoffs

Answer 8

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

Question 9

the shift from vertical integration to focusing on ________ has led to supply chain management as we know it today

Answer 9

core competencies

Question 10

why is scm so difficult

Answer 10

variation in demand and/or supply
changing customer requirements
decreasing product life cycles
conflicting objectives inside the firm

Question 11

efficient supply chain would be better suited for

Answer 11

mass production

Question 12

a responsive supply chain would be better suited for

Answer 12

very volatile demand

Question 13

the further away you get from the consumer, the bigger the range in demand is

Answer 13

bullwhip effect; caused by a lack of communication and trust (everyone in the chain is trying to avoid a stock out)

Question 14

hold inventory and wait for customers to come and buy

Answer 14

push manufacturing (traditional supply chain)

Question 15

dont start manufacturing until you get an order

Answer 15

pull manufacturing (need to be able to react quickly and have short leads times to get to customer)

Question 16

why is scm so important

Answer 16

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

Question 17

poor supply chains lead to

Answer 17

higher inventory levels
lower revenue
higher costs
lower profits

Question 18

the type of supply chain is based on

Answer 18

the type of product

Question 19

innovative products need a _____ sc and functional products need a _____ sc

Answer 19

innovative

functional

Question 20

characteristics of an innovative product/sc

Answer 20

short product life cycles; unpredictable demand; high margins; higher penalty for stockouts; high risk of obsolescence and excess inventory

Question 21

most important factor for success for an innovative supply chain

Answer 21

responsiveness; need flexibility in manufacturing to react quickly to market demand

Question 22

characteristics of a functional product/sc

Answer 22

long product life cycles; predictable demand; low product variability; lower profit margin; matching supply and demand is fairly easy

Question 23

most important factor for success for a functional supply chain

Answer 23

efficiency; allows the firm to concentrate on minimizing supply chain costs

Question 24

in addition to cost effective and fast, supply chains need to be

Answer 24

agile, adaptable, and aligned

Question 25

methods to achieve agility

Answer 25

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

Question 26

methods to achieve adaptability

Answer 26

be aware of your surroundings

design the supply chain based on your product type

Question 27

methods to achieve alignment

Answer 27

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

Question 28

efficient, predictability, and low cost describe a ______ sc

Answer 28

functional

Question 29

making a prediction on what will occur in the future based on past and present data

Answer 29

forecasting

Question 30

the foundation of any successful operations team

Answer 30

forecasting

Question 31

if the forecast is not accurate or consistent then the _____ and ______ are put under great stress

Answer 31

supply chain

inventory

Question 32

relies on subjective opinions from one or more experts

Answer 32

qualitative forecasting methods

Question 33

relies on data and analytical techniques

Answer 33

quantitative forecasting methods

Question 34

models that predict future demand based on past data

Answer 34

time series

Question 35

models that use statistical techniques to establish relationships between various items and demadn

Answer 35

causal relationships

Question 36

models that incorporate some randomness and non-linear effects

Answer 36

simulation