Mod 6

Question 1

The values of information include:

Answer 1

• reduce variability
• improve forecasts
• enables coordination of systems and strategies
• improves customer service
• facilitates lead time reductions
• enables firms to react more quickly to changes

Question 2

Order variability is amplified:

Answer 2

up the supply chain

Question 3

Upstream echelons face:

Answer 3

higher variability

Question 4

Causes of Bullwhip effect include:

Answer 4

• Promotional sales
• volume and transportation discounts (batching)
• inflated orders
• demand forecasting
• long cycle lead times

Question 5

Consequences of bullwhip effect include:

Answer 5

• increase transportation costs
• reduced service level
• increased safety stock
• inefficient allocation of resources
• increased production costs

Question 6

How to cope with bullwhip effect:

Answer 6

• reduce uncertainty (sharing of information)
• reduce variability (eliminate promotions)
• reduce lead times (EDI, cross docking)
• strategic partnerships (VMI, data sharing)

Question 7

collaborative forecasting addresses:

Answer 7

• pricing

-promotion

-new products

Question 8

Information for coordination of systems include:

Answer 8

• production status and costs
• transportation availability

-inventory information

-capacity information

-demand information

Question 9

benefits of lead-time reduction include:

Answer 9

• orders are filled quickly
• reduced bullwhip effect
• accurate forecasts
• reduced inventory levels

Question 10

how can you reduce lead-time?

Answer 10

• process analysis

-EDI

• transportation choices

Question 11

CPFR stands for:

Answer 11

collaborative planning, forecasting and replenishment

Question 12

CPFR include:

Answer 12

• strategy and planning
• demand and supply management
• execution
• analysis

Question 13

How does Nabisco cope w/ bullwhip effect?

Answer 13

-Integrated information systems

-coordinated planning

Question 14

how to achieve coordination in practice:

Answer 14

-Quantify the bullwhip effect
-Get top management commitment for coordination
-Devote resources to coordination
-Focus on communication with other stages
-Try to achieve coordination in the entire supply chain network
-Use technology to improve connectivity in the supply chain
-Share the benefits of coordination equitably

Question 15

Supply chain upstream is:

Answer 15

extent to which retailers and consumers can monitor origin of products

Question 16

supply chain transparency captures:

Answer 16

the extend of which information about:
-companies
-suppliers
-sourcing locations
is readily available to end users and other companies in the supply chain

Question 17

demand/downstream transparency

Answer 17

extent to which suppliers and manufacturers can monitor demand

Question 18

benefits for demand (downstream) SC transparency:

Answer 18

-sharing POS data

-VMI programs

• limit bullwhip effect
• better SC coordination
• decreases costs of demand uncertainty

Question 19

benefits of supply/upstream transparency:

Answer 19

• risk management
• quality assurance
• authenticity concerns
• environmental issues

-labor issues at origin

Question 20

forms of technologies companies are using:

Answer 20

RFID

Bar Coding

enhanced product labels

genetic testing

sand-gram micro chip

Question 21

reasons to not track SC transparency:

Answer 21

• financial barriers
• cant see beyond first tier suppliers
• increased level of risk w/ data sharing

Question 22

ways to build supply/upstream SC transparency

Answer 22

• identify and prioritize risks
• visualize risks
• use transparency levers to close info gaps
• manage and monitor

Question 23

blockchain is:

Answer 23

Distributed database of records, or public ledger of all transactions or digital

Executed and shared among participating parties.

Verified by consensus of a majority of the participants in the system.

Question 24

characteristics of blockchain include:

Answer 24

-Permission-less (accessible to anyone)
-Transparent (visible to everyone)
-Immutable (permanent)
-Secure (Extremely difficult to tamper with)

Question 25

blockchain for supply chains include:

Answer 25

• integrity of goods
• trust

-tracking

-track quantity

• record shipping documents

-provide downstream participant w/ details

-simplify regulatory and auditing processes

• monitor shared info

Question 26

benefits of blockchain:

Answer 26

-Transparency
-Security
-Speed of information
-Innovation
-Information Flow

Question 27

disadvantages of blockchain:

Answer 27

-confidentiality

• scalability
• energy consumption
• law