Scm Chapter 1

Question 1

Customer Contact

Answer 1

The amount of interaction between the customer and the value creation process. Customer contact is high in service industries and low in manufacturing.

Question 2

Design for manufacturability

Answer 2

Designing products so that they can be easily and inexpensive made. DFM often involves concurrent or simultaneous design- designing product and process at the same time.

Question 3

Economic order quantity

Answer 3

Order quantity that minimizes the total cost of cycle inventory and placing orders. The amount of inventory to make ( or buy) that minimizes total inventory cost. The EOQ occurs at the point when carrying ( aka, holding costs) are equal to set-up ( or order) costs

Question 4

Employee involvement

Answer 4

Involving workers in the decisions that affect their jobs-often used as part of continuous improvement programs.

Question 5

Environmental scanning

Answer 5

The process of systematically seeking, acquiring and interpreting relevant data to identify external opportunities and threats.