GSCM2017 Flashcards
What are the eight ‘rights’ in logistics?
- right product
- in the right way
- in the right quantity
- and the right quality
- in the right place
- at the right time
- for the right customer
- at the right cost
What is the difference between outsourcing and offshoring?
Outsourcing: third party provider
Offshoring: transfer of specific processes to lower cost location in other countries (still own it)
What is back- and nearshoring?
Backshoring: move activities back to original home market
Nearshoring: move offshored activities to countries closer to home market
What are order-losing sensitive qualifiers?
Order qualifiers that are more critical than others in terms of the outsourcer’s requirements
How is the framework for evaluating potential outsources?

What are the four stages of outsourcer-outsourcee relationship?
- Master-servant stage: low cost is main driver
- Consultative stage: outsourcer consults with outsourcee on regular basis
- Peer-to-peer relationship stage: ideal stage, synergies, long-term, win-win
- Competitive stage: outsourcee takes the lead and starts competing with outsourcer
What are the four primary modes of integration within a supply chain?
- Internal
- Aim: integrate communication and information systems
- Backward (external)
- Forward (external)
- Forward and backward (rare) (external)

What is the difference between supply chain integration and collaboration?
Integration: alignment and interlinking of business processes
Collaboration: relationship between supply chain partners developed over a period of time
What is vertical and horizontal collaboration?
Vertical collaboration: between suppliers and customers (easiest)
Horizontal collaboration: between competitors and supply chain actors

What is the unionist view?
That logistics is part of the wider entity which is SCM (adopted by the book)
What is craft production?
Goods customised for individual customer needs
What is just-in-time (JIT)?
A system where inventory is pulled downstream through the system, which prevents stockpiling and inefficiency.
What are the seven key areas of the Toyota Production System (TPS)?
- Overproduction
- Waiting
- Transportation
- Inappropriate processing
- Unnecessary inventory
- Unnecessary motion
- Defects
What is MTS and MTO?
Made-to-stock (push + inefficient) and made-to-order (pull + Toyota)
What is an agile supply chain?
‘To a truly agile business demand volatility is not a problem; its processes and organisational structure as well as its supply chain relationship enable it to cope with whatever demands are placed upon it.’
In the above figure, the supply chain to the right is better able to cope with demand volatility, as it has more options in the second step to steer production towards another product.
Professor Christopher: ‘the ability to respond rapidly to unpredictable changes in demand’

What is postponement?
A production philosophy used for mass customisation, which involves the reconfiguration of product and process design so as to allow postponement of final product customisation as far downstream as possible
Also known as: ‘delayed product configuration’, ‘delayed product differentiation’ and ‘late stage customisation’
What is a stock-keeping unit (SKU)?
It is a unique version of a product in terms of size, packing, colour etc.
What are functional products?
- Predictable demand
- Long product life cycles
- Low variety
- Long lead times
Requires an efficient supply chain
What are innovative products?
- Unpredictable demand
- Short product life cycles
- High variety
- Short lead times
Requires a responsive supply chain
What is the taxonomy for selecting global supply chain strategies?

What is the bullwhip effect and what are the five causes?
When the inventory levels fluctuate along the supply chain, as small fluctuations in end customer demand result in amplification of demand upstream.
- Non-zero lead times
- Demand signal processing
- Order batching
- Price variation
- Rationing and gamin
What are the different types of simulation?
- Stochastic or deterministic
- Static or dynamic
- Discrete event and/or continuous
What is a stochastic and deterministic model?
Stochastic: Has a least one input variable that is random
Deterministic: has no random input variables
What is a static and dynamic model?
Static: do not include the passage of time (presents at a particular point in time)
Dynamic: includes the passage of time and represents systems as they change over time








