supply chain chapter 1,2,3 Flashcards
What is a supply chain?
A supply chain manages the flow of materials, information, and funds across different players.
List the three flows in a supply chain.
- Goods Flow: Raw materials → Work in progress → Finished goods
- Information Flow: Orders, dispatch advice, demand forecasts
- Funds Flow: Payments from end consumers to suppliers
What is the reverse flow in a supply chain?
Returns (defective products, packaging, equipment, customer feedback).
What triggers a supply chain based on product supply?
Push Strategy: Products are produced in advance.
What triggers a supply chain based on customer demand?
Pull Strategy: Production starts after an order is placed.
What does the SCOR Model define?
Five key supply chain functions.
List the five key functions in the SCOR Model.
- Plan: Demand forecasting & balancing supply and demand
- Source: Procuring raw materials & services
- Make: Efficient manufacturing processes
- Deliver: Logistics & distribution management
- Return: Handling defective products & recycling
What is the goal of planning in supply chain management?
To align with financial strategies to optimize supply chain performance.
What is a simple supply chain structure?
Supplier → Company → Customer.
What is an extended supply chain structure?
Supplier’s supplier → Supplier → Company → Customer → Customer’s customer.
Who are distributors in the supply chain?
They buy in bulk and supply product assortments.
True or False: Wholesalers serve industries like hotels and restaurants.
True.
What are the challenges in supply chain dynamics?
- Inventory Management: Avoiding overstocking & shortages
- Bullwhip Effect: Small changes in demand cause large supply fluctuations.
What are best practices to improve supply chain performance?
- Improved communication
- Accurate forecasting
- Reduced lead times
What key learning points are derived from the Beer Game Simulation?
- Human factors influence supply chain performance
- Collaboration prevents inefficiencies
- Outsourcing improves performance
What are the 1st Tier Suppliers for Samsonic Mobile Inc.?
- AMOLED screens from China
- Processors from South Korea
- Lithium-ion batteries from Taiwan
What are the 2nd Tier Suppliers for Samsonic Mobile Inc.?
- Cobalt from DRC
- Lithium from Chile
Where is manufacturing and assembly for Samsonic Mobile Inc. done?
Smartphones in Vietnam, accessories in Mexico.
What are the distribution centers for Samsonic Mobile Inc.?
- Thailand (corporate clients & resellers)
- Germany (retailers & telecom providers)
What are the sustainability challenges faced by Samsonic Mobile Inc.?
- Unethical sourcing
- High carbon footprint
- Electronic waste
What solutions are proposed for sustainability challenges?
- Certified mining
- Renewable energy use
- Recycling programs
- Optimized logistics
What does sourcing involve?
Selecting and managing suppliers over time.
What are the two types of sourcing groups?
- Direct Items – Essential for product manufacturing
- Indirect Items – Support business operations
List the steps in the purchasing process.
- Pre-Order: Need specification, sourcing, tendering, negotiation, selection
- Post-Order: Contracts, order handling, delivery tracking, payment & performance evaluation
What is a key benefit of effective sourcing?
Improved quality, cost savings, reduced cycle times.
What is tactical sourcing?
Includes market research, supplier benchmarking, cost & price analysis.
What is strategic sourcing?
Includes category management, supplier relationship management (SRM), sustainability initiatives.
What does the Kraljic Sourcing Strategy Matrix categorize?
Risk vs. Spend.
What are the categories in the Kraljic Sourcing Strategy Matrix?
- Critical (High Risk, High Spend)
- Leverage (Low Risk, High Spend)
- Bottleneck (High Risk, Low Spend)
- Routine (Low Risk, Low Spend)
What enhances collaboration and innovation in supply chain management?
Supplier Relationship Management (SRM).
What are the four stages of negotiation?
- Establish necessity
- Plan negotiation
- Execute negotiation
- Deliver the agreement
What types of costs are involved in cost management?
- Fixed
- Variable
- Semi-variable
What does Total Cost of Ownership (TCO) evaluate?
Evaluates suppliers.
What are the characteristics of intermittent production?
Low volume, high variety (customized production).
What are the characteristics of continuous production?
High-volume, standardized production (mass production).
What is the difference between forecast-driven and demand-driven production?
- Forecast-Driven: Uses Master Production Scheduling (MPS) and Material Requirements Planning (MRP)
- Demand-Driven: Just-In-Time (JIT) minimizes inventory and reduces waste.
What are key aspects of Just-In-Time (JIT) production?
- Reduces setup times
- Reduces lead times
- Reduces lot sizes
- Enhances quality & efficiency
What is the goal of lean manufacturing?
Reduce waste while maximizing value.
List key lean principles.
- Every step must add value
- Reduce errors & inefficiencies
- Continuous improvement (Total Quality Management - TQM)
What tools are used for lean manufacturing?
- 5-Why Analysis
- Loss Tree Analysis
- Fishbone Diagram
What problem is addressed in the case study for applying make improvement tools?
High defect rate in packaging.
