SCMN Management of Business Processes Flashcards
Who is the most important participant in the supply chain?
The Consumer
Identify three companies that you think have great supply chains:
Amazon, Walmart, Target
What are the seven rights of supply chain management?
right product
right customer
right time
right place
right condition
right cost
What are the three key flows of a supply chain?
product, information, financial resources
The goal of supply chain is to get products to market effectively and efficiently…
Better, faster, cheaper than your competition
Who’s involved in the supply chain
Suppliers, manufacturers, distributors, retailers, customers
T/F consumer demand should drive activity across the supply chain
True
Challenges of supply chain are
- product life cycles are shrinking
- customers are demanding customized products
- competition is intensifying
- companies need to be much more efficient
Centralized activities:
Are concentrated at a single node. The network is designed around it.
Example: L. L. Bean
Decentralized activities:
Similar activities take place at multiple regional nodes that make up the overall network
Example: Kroger
What does SCM involve
Supply Chain Management includes all the activities that take place to get a product in your hands - from raw materials extraction to production and final goods delivery.
What factors tend to pull facilities away from its main markets?
severe traffic congestion
____ converts the master schedule of production into a detailed schedule, so that you can purchase raw materials and components.
Materials requirement planning
The _____ is the plan that a company develops for production, staffing, or inventory.
Master production plan
Is not one of the key priorities of Sales and Operation Planning
Creating independent forecasts and action plans.
T/F… All supply chains are constructed in a similar fashion with the same number and types of participants.
False
T/F… Auburn has an RFID lab that work on Supply chain solutions like product tracking and visibility
True
*The rate at which output can be produced by an operating unit
*Ex: Machine, process, facility, company, restaurant, movie theater, airplane, etc.
Capacity
The process of establishing the output rate that can be achieved (throughput)
capacity planning
capacity planning and management
Goal is to match capacity and demand
*National
*Lower investment
*Lower level Lower cost
*Higher cost Effective
centralized
the single node controls customer interaction, the
flow of goods, and other key activities on a national basis
* Benefits
* Lower safety stock levels
* Lower overhead costs
* Economies of scale
* Challenges
* Longer lead times
* Higher delivery costs
* Potential inefficiencies
centrazlied network
T/F… Companies that have an effective sales and operations planning process increase their visibility across their enterprise, improve product management, and minimize unnecessary buildups of inventory.
True
Suppliers to dock, dock to truck. preorganized
* moderate inventory held at store
* low handling costs
* low facility costs
cross docks
*Regional
*Greater investment
*Higher level Higher cost Lower cost Highly effective
decentralized
Each node controls customer interaction, the flow of
goods, and other key activities within its region
* Benefits
* Shorter lead times
* Better customer service
* Lower delivery costs
* Challenges
* More safety stock
* Higher overhead costs
* Fewer economies of scale
decentralized network
Supplier to store,
- no inventory idled
- quicker delivery
- lowest handling costs
direct delivery
Items held in inventory at middle warehouse
- high inventory held at warehouse
- high handling costs
- high facility investment
distribution center
A fixed point in a supply chain where goods are processed, mixed, held, or sold
node
The forward-looking process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand
supply chain planning
Capacity < Demand
Risk = inventory shortage
The transportation method used to connect the nodes (plants, warehouses, stores) in a supply chain.
link
Network design characteristics
centralized/decentralized
T/F… The primary benefit of a decentralized supply chain network is customer proximity and the main drawback is a need for larger inventory safety stock.
true
Sales and Operations Planning
The heart of balancing supply and demand, and aligning the company around a common financial, demand and supply plan. The overall result of the S&OP process is that a single operating plan is created that identifies the allocation of company resources, including time, money and employees.
*Job assignments
*Ordering
*Job scheduling Dispatching
short-range planning
T/F… Short term planning focuses on current supply chain issues. This involves planning your immediate needs - scheduling people, sequencing production, and developing delivery routes.
true
T/F… Short term planning focuses on current supply chain issues. This involves planning your immediate needs - scheduling people, sequencing production, and developing delivery routes.
true
T/F… Supply chain management mainly focuses on the creation, movement, and storage of products. However, it is also important to think about SCM strategy, people issues, and information.
true
T/F… Unlike forecasting which focuses on day-to-day planning, scheduling is a mid-range tactical activity that develops plans across months and quarters.
false
centralized
*National
*Lower investment
*Lower level Lower cost
*Higher cost Effective
In which sequencing method do companies coordinate supply chain processes based upon meeting deadlines in a timely fashion?
earliest due date
(T/F) You should always forecast component parts
(Dependent Demand items).
False
The S&OP process begins with the Demand Forecast (Account Projections) generated by the
_____________ Department.
Sales/Marketing
