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OPMA 317_2 > Supply Chain Debrief > Flashcards

Supply Chain Debrief Flashcards

1
Q

EBeer game- 4 roles

A

Manufacturer (makes goods)
Distributor (served wholesalers)
Wholesaler (Served retailers)
Retailer (served customers)

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2
Q

what flowed up from retaielrs

A

purchase order Paperwork

this was the quantity that was requested

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3
Q

what flowed downstream from manufacturers

A

this was the products flow

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4
Q

What was a pattern in the orders that were made for every group

A

There was a time lag, but BOTH inventory and orders increased first with the retaielrs then slowly got higher at the next level after a period of time

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5
Q

What was actual demand in the EBeer Game

A

4 for the first 4 weeks and then 8 consistently

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6
Q

what are 2 reasons for fluctuations in ordering quantities

A

1) customer demand changes
2)bull whip effect
3) lack of communicaiton

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7
Q

What happened in the game

A

the retailers ordered a shit ton, then the wholesalers did more, then the distributors did more, then the manufactureres did even more!!

gues son top of guess on top of gueess

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8
Q

What is the bullwhip effect

A

information (orders) going back thorugh the supply chain become distorted and then AMPLIFIED

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9
Q

How did the bullwhip effect be showcased in the simulation

A

Lack of communicaiton/cooperation between levels, people had to guess customer demand

lead to wrong ordering decisions

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10
Q

What does the bullwhip effect result in

A

causes members of the supply chain to overreact to changes in demand at the retail level

small demand changes at consumer level result in LARGE ONES at supplier level

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11
Q

How does long lead times affect ordering

A

when long lead time, PEOPLE PANIC!! they order more but this does not increase lead time

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12
Q

how did long lead time have affects in the simulation

A

people panicked when the order did not arrive instantlty and the backlog kept growing!! panicked and order even more

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13
Q

What are the 5 business implicaitons/EXPENSES of the supply chain structure

A

1) stockouts CAN occur
2) excess inventory can occur
3) overtimem costs
4) layoffs/rehiring costs
5) expediting

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14
Q

How can stockouts occur cuz of supply chain structure

A

because the orders are coming in and there is not enough inventory

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15
Q

why do over time costs occur in a supply chain

A

50% -100% increase in labour costs can occur when trying to match the fluctuating demands of people

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16
Q

Why are there layoffs/rehiring costs in supply chain

A

beacuse demand can be fluctuating (or at least cuz of bullwhip effect)

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17
Q

Why can expediting costs become a factor in the supply chain structure

A

because there are long lead times, the companies might start rushing transportation costs to meet demand

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18
Q

What is the negative part of the supply chain structure

A

because of the general lack of communication, there are lots of costs that can occur, so this will result in a higher end price for the consumer

19
Q

HOW do we measure the bullwhip effect

A

measure the amplification of variance!!!

20
Q

Formula for bullwhip effect, numerical meaning

A

Variation in Orders/Variation in Demand

If the bullwhip effect is greater than 1! Then more var in orders than demand, which means that effect is happeining

21
Q

what did stanley do?

A

mitigated the panic buying of retailers during covid 19 by making employees build tools and shit during covid

this way they earned a lot of money cuz when the demand started ocming in they had inventory

WAS A RISK: because if the demand didnt come in the ocmpany would have lots of inventory and associated costs wouldl be high
-ALSO ethical? making parents be away from kids during a pandemic?

22
Q

How can the supply chain be improved

A

Better communication and cooperation
-track actual consumer demand (ERP)
-encouage cooperation
-forecasting

23
Q

How do we track actual cosnumer demand

A

Use IT!
-> Point of sale systems, ERP, internect
-> stop converting fairly constant consumer demand into lumpy demand by lot sizes, DONT STRESS SUPPLY CHAIN!!!!!!!!

24
Q

How can we encourage cooperation/communication between parties in the supply chain?

A

1) incentivize sharing information
-> offer lower unit cossts to buying businesses for getting the actual data of customers
-> they need this incentive because organizing data and shii means more admin costs

2) VMI
->have ppl from the vendor go in to check inventory!
-> lower admin costs for the retailer
-> vendor sees actual cunsomer demand

25
Q

PROS OF VMI

A

1) lower admin costs for retailer
2) products rrackerd properly
3) consumer demand tracked accurately
4) products showcased better
5) can track competitiors demand too

26
Q

How can forecasting encouage supply chain communication?

A

Use CPFR (collaborative planning foreacsting and replenishment)

-> share forecasts, production and distribution schedules
-> share decision making

27
Q

Who did FIRS EVER VMI

A

ruth handler. matterls co founder, who was upset that data was 6 weeks old by the time she saw it

28
Q

Example of CPFR

COllaborative planning fprecasting and replenishment

A

-Canadian Tire gives supplier 26 week Planned order stream for each stock-keeping unit

  • this is regenerated weekly, so suppliers can see far in advance when demand will “POP”

-supplier lead times are cut down from 45 to 15 days

-now they do collaborative cpfr with 100 of their largest suppliers

29
Q

How can we shorten lead times? 3 WAYS

A

1) admin (ordering) lead time
-> use IT to cut lead times of ordering

2) physical manufacutureing lead time
-> just-in-time production systems(you have smaller batches- completed faster)

3) transportatin lead time
->have suppliers close by GEOGRAPHICALLY

30
Q

How is physical manufacturing lead time improved by just in time production systems?

A

JIT: inventory management that requires working closely with suppliers so that raw materials arrive as production is scheduled to begin, but no SOONER.

-> LOW SETUP TIME
-> VERY SMALL BATCHES= FASTER PRODUCTION COMPLETION
-> KEEP INVENTORY LOW
-> lots of opp costs of tied up inventory

31
Q

Why is there so much offshoring? is this good?

A

because it is cheaper! but it is not good because this leads to very high lead tiems

32
Q

Why is onshoring good?

A

-transportation costs are very high a lot of the time
-lead times create silos in supply chain
-reducing currency exposure
-reduces trasportation concern

-ikea onshored, so did ford

33
Q

What is next shoring

A

having producting next to demand!!!

-> reduces logisitc cost
-> reduced lead time
->better for envrionment
->better receptive to consumer demand/local needs
->better percepiton: more jobs

34
Q

What is reshoring doing to jobs!

A

increasing jobs in home country! more manufacturing jobs in usa!!

35
Q

there are awards for reshoring jobs!

A

yep ! national metalworking reshoirng

36
Q

What can you do if you are a SME (Small/mid entr) and cannot change supply chain structure

A

ADAPT TO SUPPLY CHAIN!!!!
1) Aspirin rule: if you take 2 aspiring rn dont take one more right away, just chill
-> BE AWARE OF THE LEAD TIME

2) Systems thinking: ANALYZE how your actions will affect the supply chian, before you do anything

37
Q

What is the 3 ways tosolve supply chain problems? SUMMARY

A

1) change the supply chain structure (communicaie and cooperate, shorter lead times)

2) if you cannot change the supply chain structure THEN ADAPT
(adapt= recognize the delays)

3) Choose capable suppleirs

38
Q

how can you choose capable suppliers!!!!!

A

DONT FOCUS ON THE COST OF SUPPLIERS!!!

1) choose reliable ones that have fast production and fast delivery
2) are they willing and able to collaborate (share infofrmation)
3) DONT SKIMP ON THE SUPPLIERS

39
Q

Does promotions/sales and discounts create fluctuations in the supply chian?

A

YES!!!! this makes people have varied factory orders!!!

40
Q

If you are not to have promotions/sales/discounts, what is the ideal appraoch for SCM

A

everyday low prices, so demand is constant

logic: if product prices are constant, demand will be constant too, if prices drop, then demand increases lots, this creates waves in the supply chain!

41
Q

is VMI and incentizing retailers to share info expensivE?

A

yes! but it is more expensive to have an unstable supply chaiin

42
Q

what is friendshoring

A

sourcing from nations that have ismilar political values as us! this way we can make sure that things will be stbale because our political values algin

43
Q

think about those promos like 2.00 but limit of 3 items,

what is good for mktg
what is food for scma

A

mktg: good sales!!

scma: the limit makes sure supply chiain isnt imapcted too bad

OPMA 317_2 (8 decks)

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