unit 1 Flashcards
____ ____ ____ is the efficient integration of all parties associated with the successful delivery of the final product and/or service
supply chain management
The primary goals of the supply chain are sustainable long-term ____ and to maximize ___
profits, ROI
____ is the process of obtaining services, supplies, and equipment in conformance with organizational regulations
procurement
____ is the design, operation, and improvement of the production systems that efficiently transform INPUTS into finished goods and services
operations
____ is the COORDINATED planning and execution of
- Preparation of packaged product
- Transport
- Warehousing
- Product distribution throughout the supply chain
logistics
The 4 Competitive priorities are c____, q____, s____, and f____
cost, quality, speed, flexibility
____ ___ is the time elapsed between customer placing order and order being received by customer
lead time
____ ____ typically refers to the order size
lot size
____ is the stock of any ITEM or RESOURCE used in an organization. Also includes what you need to run the business on a day-to-day business
Inventory
____ ____ protects against uncertainty in demand, lead time, supply. NOT intended to be used
safety stock
____ inventory is used to absorb uneven rates of demand or supply, perhaps caused by seasonal demand, holidays, or quantity discounts
anticipation
____ inventory are orders that have been placed by not yet received nor paid for by customer. Inventory “on its way” to the customer
pipeline
Average inventory formula
Quantity / 2
TC = DC + (Q/2) H + (D/Q) S
TC = ____ annual ____ of inventory
total, cost
TC = DC + (Q/2) H + (D/Q) S
D = annual ____ for item
demand
TC = DC + (Q/2) H + (D/Q) S
C = ____ per unit
cost
TC = DC + (Q/2) H + (D/Q) S
H = annual ____ cost per unit
holding
TC = DC + (Q/2) H + (D/Q) S
S = cost to place a ____ order
single
TC = DC + (Q/2) H + (D/Q) S
DC = annual cost to ____ inventory
purchase
TC = DC + (Q/2) H + (D/Q) S
(Q/2) H = annual ____ cost
holding
TC = DC + (Q/2) H + (D/Q) S
(D/Q) S = annual ____ cost
ordering
Economic Order Quantity
Q = EOQ
____ ____ can be used to communicate desires before a sales presentation or shipment
Supplier scorecards
Choosing a Supplier
- Stakeholder consideration
- Plant/Warehouse location
- Technology Accommodations
- Commitment to Product improvement
- Commitment to Service improvement
- Growth management, capacity potential
- Quality of 2nd and 3rd tier suppliers
A ____ ____ ____ are used to see a supplier’s efforts to get certified proof that they are committed to proving their true worth and open to evaluation
Supplier Certification Programs
Outsourcing considerations
- supplier considerations
- procurement
- operations
- logistics
s____:
location, infrastructure, equipment, process design, and management
supplier
p____:
material selection, material management, payment
procurement
o____:
quality control, improvement, consistency, capacity, flexibility, training
operations
l____:
inbound, outbound, reliability, communication/tracking
logistics
____ flow: every item is the same
line
____ flow: every item is unique
flexible
____ flow: demand is high
line
____ flow: demand is low
flexible
____ flow: static industry, doesn’t change quickly
line
____ flow: evolving industry, customers always want something new
flexible
____ flow: machines do the work. Items are manufactured quickly
line
____ flow: humans often important to design and manufacturing. Products manufactured slowly
flexible
____ flow: make-to-stock (FG inventory)
line
____ flow: make-to-order (raw materials inventory?)
flexible
____ flow: assembly line or continuous flow
line
____ flow: job shops
flexible
____ flow examples: Buy items at Target/Walmart
line
____ flow examples: Buy at specialty shops
flexible
____ flow: assemble-to-order (WIP inventory)
hybrid
____ flow: often this is a line system with options
hybrid
____ flow example: buy at fast food restaurants
hybrid
____ ____: can be interrupted without damaging product (cars, furniture, electronics, appliances)
assembly lines
____ ____: no interruptions, must be run to completion (loaves of bread, oil refinery, steel production, chemical processes)
continuous flow
A ____ is someone or something that slows or halts free movement and progress
bottleneck
A ____ ____ includes steps to making a product
precedence diagram
____ ____ is the maximum time allowed for work on one unit at each station
cycle time
____ ____ ____: add all the work element times together
total task time
____ ____ ____ ____: smallest number of workstations according to formula
theoretical number of workstations
____ ____ ____ ____: sometimes formula doesn’t take into account all of the parameters, so it may be higher than what the formula indicates
actual number of workstations
How to balance an assembly line
- Identify workstation candidates
- Choose one of the candidates for placement in the workstation
- Consider cycle time - Does the candidate fit in the workstation?
____ is the movement of goods (and services) from one location to another
transportation
____ is the part of supply chain that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related info between the point of origin and the point of consumption in order to meet customers’ requirements
logistics
____ cargo is free flowing cargo, stored loose… loaded by shovel, pump, bucket, or scoop
bulk
____ cargo is general or packaged cargo… often containerized and measured in TEU’s
breakbulk
____-____ cargo is items with a mix of characteristics: both bulk and breakbulk
neo-bulk
T____ and C____ ____: large shipments
truckload, container load
L____ and L____: smaller shipment that cannot fill a container
less than truckload, less than container load
____ is the amount of space in a container (or package) available for cargo
cube
____ ____ is when all of the space in the container (or package) has been filled
cubing out
____ is the heaviness of the cargo
weight
____ ____ is when the container (or package) has been filled with product, such that additional cargo will exceed the container’s weight limit
weighing out
____ is the use of more than one mode of transport during a single shipment
multimodal
____ is the seamless multimodal shipment. No need to unload container, repackage products. One container for entire trip
intermodal
A ____ is a schematic drawing that illustrates product placement to maximize use of shelf space and drive sales
planogram
____ related reasons for packaging:
- marketing and promotion
- provide product information
- legal considerations
consumer
____ ____ related reasons
- provides protection
- provides support
- preservation of perishable products
- facilitates movement/handling
supply chain
____ packaging is in contact with the end item (plastic bag, can, bottle, shrink wrap)
primary
____ packaging contains end item and primary packaging (box, case, drum, shrink wrap)
secondary
____ packaging contains several items which are in secondary packaging (crate, pallet, metal straps, shrink wrap)
tertiary
____ sizes (Width x Height x Length)
- 8’x8.5’x20’
- 8’8.5’x40’
standardized
Standardized containers are measured in ____-____ ____ ____
Twenty-Foot equivalent unit
Container types
- standard 20 or 40 footers
- open tops
- flatracks
- garmentainers
- high-cubes
- controlled atmosphere (CA) containers (also called reefers)
____ properties
- temperature controlled
- gas composition controls
- power requirement
- digital record of conditions throughout shipment
- airtight/watertight
- humidity level controls
reefer
____ benefits
- longer transit times possible
- delay aging / ripening process
- reduce water loss and weight shrinkage
- eliminates insects
- harmful glass removed
reefer
Pros of ____ transport:
- accessibility, flexible, versatile, reliable
- 2nd fastest mode of transport
- vital to intermodalism
road
Cons of ____ transport:
- long trips usually mean excessive regulations
- cost is vulnerable to increases in fuel prices, tolls, taxes, fees
- LTL’s and LCL’s will usually make many stops
road
Pros of ____ transport
- total cost
- fuel cost
- load
- fewer in-transit regulations
- more capable in poor weather conditions
railcar
Cons of ____ transport
- damage
- on-time reliability
- speed of shipment
- access to infrastructure required
railcar
____ ____ is the fast and efficient distribution of goods from an upstream supplier to a downstream customer through a distribution center
cross docking
____ tier suppliers are a company’s direct suppliers; typically a firm that directly provides goods and/or services to a company
first
____ tier suppliers are firms that provide goods and services to a company’s first-tier supplier
second
____ tier suppliers are firms that provide goods and/or services to a company’s second-tier supplier
third
A ____ supply chain is the direction that points toward the end consumer
downstream
A ____ supply chain is the direction that points toward the suppliers
upstream
____ is the branch of the supply chain responsible for developing solutions that ensure the effective and efficient flow of goods in the supply chain
logistics
____ ____ is the branch of the supply chain responsible for the movement of products and packaging that will flow backward in the supply chain, away from the consumer and back in the direction of manufacturers
reverse logistics
In order for supply chains to function and develop, three things must continuously flow: m____, m____, and i____
materials, money, information
A ____ ____ is a company’s plan for how the organization will purchase items, transform them, deliver them, and sell them in an effort to produce a profit
business model
____ ____ is the ability to see what is happening with inventory upstream and downstream in a supply chain
inventory visibility
____ is the amount of financial gain in any business endeavor
profit
___ is a ratio of total profit to total invested money
ROI
____ ____ are the primary advantages a company has over its competitors, usually difficult to replicate
core competencies
____ is the ratio of output purchased divided by inputs used to purchase the product or service
value
____ is the ratio of output created divided by inputs used to produce the product or service
productivity
The primary supply chain goals are e____, e____, and a____
effectiveness, efficiency, adaptability
The seven types of waste
1. defects
2. overproduction
3. transportation
4. motion
5. waiting
6. inventory
7. over-processing
.
____ are poorly manufactured products
defects
Keys to a successful supply chain
- satisfy the needs of the ____
- satisfy the needs of the ____
- be prepared for the ____
customer, company, future
A supply chain strategy should take into account three things:
- A ____/____ that meets consumer needs
- The ____ ____ that will be used to create and deliver the product/service
- The supply chain ____ that will help create and deliver the product/service
product/service, business model, partners
____ risks from holding inventory:
- theft or damage to inventory
- late shipments from suppliers
- employee sickness
- employee strike
- machine malfunctions
- harsh weather
company
____ risks from holding inventory
- employee sickness or strikes
- sudden increases in demand for your company’s supplies
supplier
____ risks from holding inventory
- sudden increase in demand
- damage to inventory
customer
___ are items that are not intended as part of the finished goods but are important to the daily operations of the company
MRO (maintenance, repair, and operations)
Pipeline inventory = ____ ____ x ____ ____
daily demand x lead time
____ is a specific product or service’s identification code used to track inventory or catalog sales
SKU (stock keeping unit)
____ demand item is an item for which demand levels are NOT directly impacted by the demand of another related item
independent
____ demand item is an item for which demand levels ARE directly impacted by the demand of another related item
dependent
Pros of ____ inventory levels:
- higher levels of customer service
- quantity discounts may be possible
- fewer orders will need to be placed
- greater security against unexpected demand variability
high
Pros of ____ inventory levels
- less storage space required
- lower chance of inventory obsolescence and shrinkage
- less inventory typically means fewer materials handling requirements
- less money invested in inventory means more money available for other investment opportunities
low
The four costs of inventory:
- p____
- h____
- o____
- s____
purchasing, holding, ordering, stockout
The cost to ___ is the cost of buying inventory
purchase
The ____ cost is the cost of holding inventory
holding
The ____ cost are the costs associated with placing an order for inventory
ordering
The ____ cost are the costs associated with not having enough inventory on hand to meet customer demand
stockout
____ is the lot size that will minimize total annual inventory cost
EOQ (economic order quantity)
When AHC is greater than AOC, holding costs are too ____
high
When AOC is greater than AHC, holding costs are too ____
low
____ ____ ____ represent the chain of organizations that help bring a product into the hands of the end user
channels of distribution
An ____ ____ ____ implies that an organization has a group of companies with which it has developed a working relationship, perhaps these companies have worked together for many years
established supplier base
A ____ ____ can refer to one region where many companies in a single industry are all co-located, heavily concentrated in a particular region, and where these companies often compete fiercely
business cluster
____ identifies a target market, while designers and engineers work to develop products that satisfy the needs of the target market. ____ ____ must then buy parts, manufacture hundreds or thousands of those end items and then deliver them into the hands of the customer
Marketing, supply chains
____ decisions provide direction for the company by identifying target markets, business models and potential product or service categories in which the company would like to compete
strategic
____ decisions are decisions that seek to satisfy a target market in a particular product or service category
design
____ decisions impact the organization in the short-term
operating
Assembly line challenges
- identify and eliminate bottlenecks
- too many employees and/or workstations
- employee inequities
- present needs vs future demands
A ____ is a section of a supply chain or production process that limits the overall output of the system
bottleneck
____ ____ are the smallest units of work that must be accomplished to complete an end item on the assembly line
work element
____ ____ ____ is the sum of all the tasks on the precedence diagram
total task time
A ____ is the collection of one or more work elements
workstation
____ ____ is the pace at which products must move through the assembly line in order for the assembly line to keep pace with demand
cycle time
Line balancing rules
- Identify workstation candidates
- Choose one of the candidates for placement into the workstation
- Test viability of candidate chosen
____ ____ rule: a workstation must have a total task time equal to or less than the calculated cycle time
cycle time
____ rule: all tasks in a workstation must not violate the precedence relationships illustrated in the precedence diagram
precedence
A ____ assembly line uses minimal resources but it still meets consumer demand and creates high-quality outputs
balanced
____ ____ is the management of products that flow backward in the supply chain (upstream), away from the consumer and back in the direction of manufacturers
reverse logistics
____ ____ is delivering the right order (product and quantity), to the right place (location and customer), at the right time, in the expected condition, with the appropriate documentation
order fullfillment
____ represents the dimensional space (volume) inside of a container
cube
The ____ limit of a container communicates the maximum combined weight of the cargo that can fit inside of that container
weight
____ transportation is when cargo is moved from one vehicle or vessel to another vehicle or vessel without any direct handling of the cargo
intermodal
____ secures the item, makes it easy to move, allows the customer to see and make judgements about the item, and in some cases it fulfills legal requirements
packaging
Types of packaging
- bottles, boxes, cans
- tape, steel straps, plastic wrap
- dunnage
- pallets, slip sheets, crates
A ____ is a platform upon which large amounts of cargo can be securely placed for easy movement by a human-operated or automated forklift, pallet jack, or reach truck
pallet
Basic ____ and ____ footers: capable of carrying all sorts of packaged and/or palletized cargo
20, 40
____-____: a container that is 1 foot taller than the standard 40’ container
high-cubes
____ ____: often called reefers because they are refrigerated, modern containers can also control humidity, composition of the air and pressure
controlled atmosphere
____ are containers are similar to the basic containers; except they would have a rod or cable that would allow for easy and secure movement of clothing on hangers
garmentainers
____ containers are for products that require ventilation while in transport
ventilated
____-____ allows for bulk cargo to be poured into the container
open-top
____ shippers specialize in moving large amounts of goods, enough goods to fill an entire truck or perhaps multiple tracks
truckload
____-____-____ shippers are used if a company has a reasonable amount of goods going to a single location, but not enough goods to fill an entire truck or container
less-than-truckload (LTL)
____ ____ shippers typically refer to anything from an envelope to a single packaged shipment of less than 150 pounds, although the upper limit varies from one small package shipper to another
small package
The five major modes of transportation: r____, r____, o____, a____, and p____
road, rail, ocean, air, pipeline
A ____ ____ ____ ____ ____ is a truck trailer placed directly on a rail flatcar
trailer on a flat car (TOFC)
A ____ ____ ____ ____ ____ is a standardized container placed directly on a rail flatcar
container on a flatcar (COFC)
A ____ is where two containers are stacked on top of each other on a single but specialized railcar that can safely accommodate two containers while still allowing the double-stacked containers to clear tunnels
doublestack
Warehousing and DC services
- picking and packing
- assembly
- postponement
- quality inspections
- management of packaging materials
- disposal, disassembly and/or recycling of unwanted or defective products
- repair or refurbishing of defective products
A ____ center is a facility that specializes in receiving customer orders and then picking the ordered items from the shelves, packing the items into a box or shipping envelope, and labeling the orders so the order is ready for shipment to customer’s home or office
fulfillment
A ____ ____ ____ is a facility that performs a number of reverse logistics functions typically related to returned consumer products
central return center
____ ____ typically refers to the portion of the supply chain between the final inventory holding facility and the end consumer
last mile
____ is a network of vendors that learn, improve, and prosper in sync with their parent companies
keiretsu
Steps in the purchasing process
- Requisition
- Supplier selection
- Place order
- Track order
- Receive order
Purchasing Documents:
- material requisition (MR)
- Request for quotation (RFQ)
- Purchase order (PO)
A ____ ____ is used to initiate the purchasing process. Signals that a product or service is needed along with listing the quantity needed, product/service description and or specification
material requisition (MR)
A ____ ____ ____ can be issued to one or more potential suppliers if the product or service requested is not in stock
request for quotation
A ____ ____ is a contract that states the terms and conditions of the order
purchase order
____ purchasing is a purchasing system where all corporate employees send material requisitions to a single purchasing department
centralized
____ purchasing is a purchasing system where material requisitions are sent to a departmental purchasing department
decentralized
Reasons for ____
- proprietary technology
- no competent supplier
- better quality control
- idle capacity
- control
making
Reasons for ____
- insufficient capacity
- lack of expertise
- competent supplier
- better use of resources
outsourcing
____ integration is the act of a company taking on additional supply chain responsibilities that were formerly done by outside parties
vertical
____ integration is taking over supply chain responsibilities formerly performed by downstream supply chain partners
forward
____ integration is taking over supply chain responsibilities formerly performed by upstream supply chain partners
backward
____ supplier
- quantity discount opportunities
- lowest total cost
- intellectual property advantages
- quality control
- relationship management is easier
- easier collaboration
single
____ supplier
- competition breeds innovation
- risk among multiple suppliers
- capacity flexibility
- location advantages
multiple
____ ____ ____ ____ is the cost of owning an item over the entire lifetime of the item
total cost of ownership (TCO)
____ flow generally manufactures products very quickly and makes the exact same product over and over again
line
____ flow manufactures products more slowly but each product can be highly customized
flexible
