Strategic SCM

Question 1

Nature of Products

Answer 1

Product Life Cycle
Demand Predicatablilty
Product Variety
Lead Time

Question 2

Functional Products

Answer 2

Stable and predictable demand
Long life cycles
Low profit margins

Question 3

Innovative Products

Answer 3

High profit margins
Unpredictable demand
Short life cycles
High market mediation costs

Question 4

Types of SC Strategies

Answer 4

Efficient

Responsive

Question 5

Efficient SC

Answer 5

Suppy predictable demand at the lowest possible cost.

Supply to Stock.

Question 6

Responsive SC

Answer 6

Respond quickley to minimize market mediation costs.

Supply to Order.

Question 7

Matching SC with Products

Answer 7

Functional Products and Efficient SC

Innovative Products and Responsive SC

Question 8

JIT

Answer 8

Just-In-Time; highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed.
Pull (demand) system
System for repetitve production operations

Question 9

Ultimate goal of JIT

Answer 9

Balanced System

Achives a smooth, rapid flow aof materials and/or work through the system.

Question 10

Sources of Waste

Answer 10

Inventory
Overproduction
Waiting Time
Unnecessary Transportation
Processing Waste
Ineficient work methods
Product Defects

Question 11

Pull system

Answer 11

system for moving work where a workstation pulls output from the preceding stationas needed.

Question 12

Push System

Answer 12

System for moving work where output is pushed to the next stationas it is completed.

Question 13

VMI

Answer 13

Vendor Managed Inventory

Supplier makes tthe main inventory replenishment decisions for the consuming organization.

Question 14

Distributors role in VMI

Answer 14

Consignment without Visibility
Consignment with Visiblity
Distributor-driven replenishment without visibility
Distributor-driven replenishment with visiblity
Distributor-driven replenishment with the customer owning the inventory

Question 15

Consignment without Visibility

Answer 15

Distributor owns inventory, customer determines what should be on shelf, distributor has no visiblity.

Question 16

Consignment with Visibility

Answer 16

Same as consignment without visibility, but distributor has real time visiblity fo inventory.

Question 17

Distributor-driven replenishment without visibility

Answer 17

Distributor owns inventory and determines what should be on the shelf.

Question 18

Distributor-driven replenishment with visiblity

Answer 18

Distributor owns inventory and determines what should be on the shelf and has real time visibility.

Question 19

Delayed Differentiation

Answer 19

A postponement tactic.

Producing but not quite completing a product or service until customer preferences or specifications are known.

Question 20

Key concept of DD

Answer 20

Products in the same family as late as possible.
Enables use of aggregate forecasts
Enables delay of detailed forecasts
Reduces scrapped inventory
Increases customer service.

Question 21

DD Strategies

Answer 21

Standardization

Resequencing

Question 22

Standardization

Answer 22

Related items in a family start out being manuf. form distinct initial subassemblies and components.
Achieved by substituting these by common ones.

Question 23

Resequencing

Answer 23

Modifying the order of product manufacturing steps so that the operation resultin in differentiation of specific items are delayed as much as possible.

Question 24

SMED

Answer 24

Single Minute Exchange of Die

Question 25

Turn and Earn

Answer 25

Car dealerships use this, sell more, get more.