Supply Chain Integration (12)

Question 1

supply chain integration

Answer 1

the effective coordination of supply chain processes through the seamless flow of information up and down the supply chain.

Question 2

Supply Chain Dynamics

Answer 2

each firm in a supply chain depends on other firms and services for materials or info

Question 3

bullwhip effect

Answer 3

increase in variability is referred to as the bullwhip effect
phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain.

Question 4

External Causes

Answer 4

least amount of control. include the following: 
volume changes 
service and product mix changes
late deliveries
under filled shipments

Question 5

Internal Causes

Answer 5

a firm's own operations can be the culprit in what becomes the source of constant dynamics in the supply chain. include the following: 
internally generated shortages 
engineering changes
order batching 
new service or product introductions 
service or product promotions
information errors

Question 6

Supplier Relationship Process

Answer 6

focuses on the interaction of the firm with upstream suppliers, includes five major nested processes.

1. sourcing (which suppliers you chose) ex. quality, cost, proximity, service
2. design collaboration (slight design change in product/ packaging can shift costs)
   
   • need to get people involved early, best designs are from out of company
3. negotiation
4. buying
5. info exchange

Question 7

SCOR supply chain operations reference model

Answer 7

a framework that focuses on a basic supply chain of plan, source, make, deliver, and return processes, repeated again and again along the supply chain
plan - deliver- source-make-return

Question 8

new service or product development process

Answer 8

1 design -critical as it links the creation to the corporate strategy
2 analysis -critical review of new offering and how it will be produced
3development-specificity to the new offering
4 full launch- the coordination of many internal processes as well as those both upstream and downstream. promotions, sales personnel briefed, distribution process etc.

Question 9

Purchasing

Answer 9

the activity that decides which suppliers to use, negotiates contracts, and determines whether to buy locally

Question 10

Sourcing

Answer 10

selection, certification, and evaluation of suppliers
annual materials cost: pD *p=price per unit
freight costs: mode of transportation, # of shipments, and full vs less than truckload
inventory costs: cycle inventory = Q/2
pipeline inventory = dL
*l= lead time d=average requirements per day
annual inv costs: (Q/2 +dL)H
administrative costs: managerial time, travel and other variables

Question 11

total annual cost

Answer 11

total annual costs= pD +freight costs+(Q/2+dL) H + administrative costs.

Question 12

Design Collaboration

Answer 12

jointly designing new services or products with key suppliers
early supplier involvement- program that includes suppliers in the design phase of a service or product.
presourcing- suppliers are selected early in a product;s concept development stage and are given significant
value analysis- systematic effort to reduce the cost or improve the performance of services or products, either purchased or produced.

Question 13

Negotiation

Answer 13

obtaining an effective contract that meets the price, quality, and delivery requirements of the supplier relationship process’s internal customers.
competitive orientation- neg. between buyer and seller as a zero sum game. one loses, other gains.
cooperative orientation- buyer and seller are partners, each helping the other as much as possible.

Question 14

Negotiation: sources

Answer 14

referent- supplier values identification with buyer
expert- buyer has access to knowledge, info, and skills desired by the supplier.
reward- buyer has the ability ot give rewards to the supplier
legal- buyer has the legal right to prescribe behavior for the supplier

Question 15

Buying

Answer 15

relates to the actual procurement of the service or material from the supplier. includes creation, management, and approval of purchase orders and determine the locus of control for purchasing decisions. 
e-purchasing
1. electronic data interchange
2. catalog hubs
3. exchanges
4. auctions
5. locus of control

Question 16

Information Exchange

Answer 16

facilitates the exchange of pertinent operating info, such as forecasts, schedules and inventory levels between the firm and its suppliers.

• radio frequency identification (RFID) identifying through use of radio signals from a tag attached to item
• vendor managed inventories system in which supplier has access to the customer’s inventory data and responsible for maintaining the inventory level required by the customer.

Question 17

Order Fulfillment Process

Answer 17

produces and delivers the service or product to the firm's customers. 
four key nested processes:
1. customer demand planning
2. supply planning
3. production
4. logistics-

Question 18

logistics includes

Answer 18

degree of ownership
facility location
mode selection
capacity level
amount of cross docking.

Question 19

fastest

Answer 19

air-truck-train-boat

Question 20

cheapest

Answer 20

boat-train-truck-air

Question 21

Customer Relationship Process

Answer 21

supports (CRM) programs, identify, attract, and build relationships with customer sand to facilitate the transmission and tracking of orders.

marketing, order placement, customer service

Question 22

Levers for Improved Supply Chain Performance

Answer 22

key levers and measurements for improving SCM
sharing data-> route computer info to supplier
collaborate activities
reduce replenishment lead times
reduce order lot sizes
ration short supplies
use every day low pricing
be cooperative and trustworthy