Supply Chain Management Flashcards
True or False. Supply Chain management is the oversight of of materials, information, and finances distributed from supplier to consumer
True
It involves coordinating this flow of materials within a company and to the end consumer. True or false
True
It includes all the necessary stops between the supplier and consumer. T or F
T
The Council of Supply Chain Management Professionals defines supply chain management as “Supply chain management encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management activities”. True or False
True
Coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers, and customers. T or F?
T
Supply chain
management integrates supply and demand management within and across companies. T or F?
T
Supply chain management is an integrating function with primary responsibility for linking major
business functions and business processes within and across companies into a cohesive and
high-performing business model. T or F?
T
logistics management activities, manufacturing operations and it drives coordination of processes and
activities with and across marketing, sales, product design, and finance and information
technology in not included to the function of supply chain management. T or F?
F
SCM is also called the art of management of providing the right product, at the right time, right
place and at the right cost to the customer. T or F?
T
What are the three main flows SCM?
Product flow
Information flow
Financial flow
Includes moving goods from supplier to consumer, as well as dealing
with customer service needs.
Product flow
Includes order information and delivery status.
Information flow
Includes payment schedules, credit terms, and additional
arrangements.
Financial flow
Supply chain management is a set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the
right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements. T or F?
TRUE
WHAT ARE THE OBJECTIVE OF SUPPLY CHAIN MANAGEMENT?
- Enhancing customer service
- Expanding sales revenue
- Reducing inventory cost
- Improving on-time delivery
- Reducing order to delivery cycle time
- Reducing lead time
- Reducing transportation cost
- Reducing warehouse cost
- Reducing supplier base
- Expanding depth of distribution
What is the final objective of a supply chain?
Customer satisfaction.
The supply chain management takes into consideration every facility that has an impact on cost
and plays a role in making the product match to customer requirements: from supplier and
manufacturing facilities through warehouses and distribution centers to retailers and stores. TRUE OR FALSE
TRUE
The main purpose of the supply chain is to maximize overall value generated. TRUE OR FALSE
TRUE
Can be defined as the total profit shared by all the stages and
intermediaries of a supply chain.
Supply chain surplus
The supply chain management has to be efficient and cost-effective across the entire system;
from transportation and distribution to inventories of raw materials, work in process, and
finished goods, are to be minimized. TRUE OR FALSE
TRUE
IMPORTANCE OF SUPPLY CHAIN MANAGEMENT
- Reduce inventories along the chain
- Share better information among the partners
- Plan in consultation rather than in isolation
What are the three levels of activities of supply chain management
Strategic
Tactical
Operational
Concerning the whole organization, such as the size
and location of manufacturing sites, partnerships with suppliers, products to be manufactured
and sales markets are taken. Such decisions have a long-lasting effect on the firm.
Strategic
Focus on adopting measures that will produce cost benefits such as
using industry best practices, developing a purchasing strategy with favored suppliers, working
with logistics companies to develop cost effect transportation and developing warehouse
strategies to reduce the cost of storing inventory.
Tactical
Decisions at this level affect how the products move along the supply chain and involves making schedule changes to production, purchasing agreements
with suppliers, taking orders from customers and moving products in the warehouse. Such
decisions refer to day-to-day decisions such as scheduling, lead time quotations, routing, and
truck loading.
Operational
This driver can be made very responsive by building factories that have a lot of excess capacity
and use flexible manufacturing techniques to produce a wide range of items.
PRODUCTION
Responsiveness can be had by stocking high levels of inventory for a wide range of products.
Inventory
A decision that emphasizes responsiveness would be one where a company establishes
many locations that are close to its customer base.
Location
Responsiveness can be achieved by a transportation mode that is fast and flexible such as trucks
and airplanes.
Transportion
The power of this driver grows stronger every year as the technology for collecting and sharing
information becomes more wide spread, easier to use, and less expensive.
Information
