unit 2 Flashcards
The goal of waiting line management is to ____ the cost paid by the customers (time) with the cost paid by the company (money paid to maintain the system)
balance
3 parts of waiting line system
- Input source
- Waiting line
- Service facility
The ____ ____ is the population of people that might want service
input source
The ____ ____ is the area in which customers wait for service
waiting line
The ____ ____ is the area in which customers actually receive service
service facility
The 4 Managerial considerations in a waiting line
- c____
- w____ l____
- e____
- s____ f____
customers, waiting lines, employees, service facilities
A ____ refers to the number of lines available at each step
channel
A ____ is a single step in the process
phase
A ____ population of customers is when the number of possible customers that may come into the store is very high (or unlimited). Many potential customers
infinite
A ____ population of customers is when the number of customers is limited. Few potential customers
finite
____ is when a potential customer sees the line but never joins the line because they think it looks too long and/or too slow
balking
____ is when a customer joins the line, gets frustrated and leaves the line
reneging
____ is when customers join one line but then decide to switch to another line
jockeying
The ____ ____ is the number of customers arriving per unit of time
arrival rate
arrival rate symbol
lambda
The ____ ____ is the number of customers that will be served per unit of time
service rate
service rate symbol
mu
The ____ ____ ____ is stated as the percentage of time the server is busy
service utilization factor
service utilization symbol
rho
A ____ is a supplier. The company from which a buyer purchases goods and/or services
vendor
A ____ is an organization that purchases goods from manufacturers, typically in large amounts and at discounted prices
wholesaler
A ____ is a company that takes customer orders, most often via a retail site
dropshipper
A ____ owns the rights to a company and the name
franchise
____ ____ typically refers to the portion of the supply chain between the final inventory holding facility and the end consumer
last mile
A ____ is a map of where every product goes on a retail store shelf
planogram
A ____ ____ ____ is an inventory planning and replenishment system where the vendor accepts certain negotiated responsibilities that typically include monitoring and restocking
vendor managed inventory (VMI)
____-____ ____ is a system where the inventory on the retail store shelf is owned by the supplier
scan-based trading
____-____ ____ is when an organization is capable of seamlessly selling to customers online, via the company’s app, in a physical store and perhaps via a call center
omni-channel retailing
____ are penalties charged by retail organizations to their suppliers/vendors for any number of minor and major supply chain offenses
chargebacks
The ____ section is typically the first thing you see when entering a grocery store
produce
The ____ section is typically in the rear of a grocery store
meat
____ ____ is how customers typically navigate their way through a retail store. Consider entrance and exit points
customer flow
A ____ has a better understanding of demand rates, fewer retailer errors. Very responsive
vendor
____ ____ ____ is the bringing together of supply chain partners - suppliers, manufacturers, logistics companies, etc.
supply chain integration
Obstacles to integration
- poor communication
- unwillingness to share with supply chain partners, plan together
- lack of trust between supply chain partners
A ____ system is where consumer demand is known and expected. Will buy materials, manufacture finished goods and even deliver the finished goods to a store or a picking and packing facility where consumers can buy them at a later date
push
A ____ system is a system that is activated by consumer demand. Will not make and store finished goods inventory. Will instead wait for the consumer to place a specific order and only then will the supply chain react by perhaps buying raw materials and/or parts, then assembling the desired goods, before quickly delivering them to the consumer
pull
Pros of a ____ system
- high inventories
- shorter lead times for end-consumer
- mistakes and defects tolerable
push
Cons of a ____ system
- high inventories
- low customization flexibility
- mistakes and defects tolerable
- forecasting miscalculations can be costly
push
Pros of a ____ system
- low inventories
- demand driven system
- flexible manufacturing possible
- closer supplier ties are developed
pull
Cons of a ____ system
- low inventories
- risky customer service rates
- tougher sell
- forecasting miscalculations can be costly
pull
____ is a system that combines elements of both the push system and the pull system
postponement
Under postponement, we can ____ the standardized portions of manufacturing, ____ the final assembly of the end item, and ____ only the customized options offered to customers
push, delay, pull
Supply Chain strategy: trade-offs:
- cost
- quality
- speed
- flexibility
The ____ ____ is where fairly stable demand results in the proliferation of the amount of inventory that is carried as one travels upstream in the supply chain. Consists of very high and very low supply levels despite fairly constant demand levels
bullwhip effect
Causes and effects of the Bullwhip effect
- price fluctuations
- order batching
- rationing
- shortage gaming
____ ____ consist of promotions, quantity discounts, special pricing/payment options
might cause order batching
price fluctuations
____ ____ is when a company places large and infrequent orders from their suppliers
order batching
____ happens when suppliers do not have enough inventory to satisfy the demand of all of their customers. Suppliers may send each of their customers only a fraction of the inventory that was ordered
rationing
____ ____ is when retailers artificially inflate order sizes in an attempt to counteract rationing
shortage gaming
____ ____ occurs when customers buy more product than is actually needed
forward buying
lead time gaming example from lecture
pull system: cost of miscalculations
5 Methods for controlling bullwhip effect
- everyday low pricing
- vendor management inventory systems
- information sharing
- improve buyer-supplier relationships
- practice lean manufacturing
With ____ ____ ____, buyers are more likely to purchase at levels that are closer to their actual demand levels
everyday low pricing
A ____ ____ ____ system is where buyers share inventory information with suppliers
vendor management inventory
____ ____ between supply chain partners allows organizations to see transactions and inventory movements across the supply chain
information sharing
rocks and water analogy
Revenue opportunities associated with globalizing a supply chain
- reach new customers
- manage risk of low sales in one market by selling in multiple markets abroad
- potential alternative sale and distribution options
- potential new product, service, or business trends
Cost opportunities associated with globalizing a supply chain
- potentially lower cost materials, labor, shortage, transportation, energy savings, etc.
- taxes, tariffs, legal fees and business transaction fees
- potential business practices and trends that improve savings in other markets
As companies expand their supply chains globally, they must be prepared to deal with differences in:
- packaging laws and accepted packaging conventions
- environmental requirements
- different distribution and retail systems
- different consumer tastes and needs
- laws that impact truck size
- label requirements
One of the primary reasons some companies expand their supply chains is to grow and achieve ____ ____ ____
economies of scale
Benefits of utilizing external partners
- speed
- expertise
- resource utilization
- focus on core competencies
Possible risks of utilizing external partners
- quality control
- intellectual property
- business practices
- loss of strategic flexibility
____ is when a company contracts an outside firm to perform services, manufacturing, assembly, operations or business practices that could be or were previously performed in-house. Local
outsourcing
____ is a strategy where a company moves manufacturing out of its “home” country to another country. Abroad
offshoring
____ ____ ____ is a strategy where a company utilizes a contractor in another country to perform services and/or operations. Abroad
offshoring and outsourcing
____-____ is where the location of the manufacturing facility is relatively close to the location of the consumer. Local
near-sourcing
____ ____ are companies that produce goods on behalf of another organization
contract manufacturers
____ ____ ____ is an industry of companies that can manufacture, assembly, test, service, package and service electronic goods for another company
electronic manufacturing services (EMS)
____ ____ ____ can exploit economies of scale in the manufacturing of electronic devices
electronic manufacturing services
Advantages of utilizing EMS firms
- fast start
- strong start
- cost advantages
- flexibility
____ typically refers to the physical structures and equipment utilized to move goods
infrastructure
A ____ ____ ____ ____ is an organization that manages and executes a particular logistics function, using its own assets and resources, on behalf of another company. Can neither be the buyer, nor the seller of the item in question
third party logistics company
A ____ ____ is a contractor that helps companies organize the efficient and effective shipment of goods from one point in the supply chain to another
freight forwarder
A ____ is a person that works at an ocean port. Provides labor that will assist in loading and unloading cargo
longshoreman
Governments establish ____ ____ to control the goods that enter and leave a country (imports, exports)
customs agencies
Customs agencies assist in the following areas:
- classifying goods and services according to the government’s classification system
- assessing and collecting the appropriate tariffs and enforcing quotas
- aiding in issues related to national security, illegal narcotics, weapons, etc.
- aid in issues related to commerce control, intellectual property, etc.
- collecting information about goods being imported and exported
The ____-____ ____ ____ ____ is a voluntary program developed by US Customs and Border Protection for companies importing goods into the US. Requires member orgs to report a significant level of detail related to supply chain partners and actions for each imported shipment
Customs-Trade Partnership Against Terrorism (C-TPAT)
A ____ ____ ____ is a contractor (company or person) that helps a client’s goods clear customs in a foreign country
customs house broker
A ____ ____ ____ is a geographic area sanctioned by the government where items are not under the control of customs authorities
free trade zone (FTZ)
____ ____ ____ offer companies the ability to easily import raw materials and export finished goods with minimal hassle
free trade zones
A ____ ____ is utilized when an item is imported and then re-exported. Typically 90%+ return of tariff
duty drawback
A ____ ____ is a building or other secured area in which can hold goods that will require a tariff/duty to be paid
bonded warehouse
Goods may stay in the bonded warehouse for up to ____ years
5
3 Purposes of logistics documentation
- T____
- F____
- I____ S____
transportation, financial, international shipments
4 Common Logistics shipping documentation
- Bill of Lading
- Packing List
- Commercial Invoice
- Certificate of Origin
The ____ ____ _____ serves as the contract between shipper and carrier, receipt of goods for the shipper, and acts as the certificate of ownership
Bill of Lading
A ____ ____ provides significant detail on what is being shipped, including dimensions and weight of items in a box
packing list
A ____ ____ is a vital document that provides a reasonable summation of the items being shipped, the parties involved, cargo values, and other information important to supply chain members and customs officials
commercial invoice
A ____ ____ ____ certifies that the goods were in fact manufactured in the country specified. Important for clearing customs and assessing duties/tariffs
certificate of origin
A ____ ____ is a single performance measurement used to evaluate, motivate, and improve performance
performance metric
A ____ ____ ____ is a group of metrics that collectively attempt to provide a multi-dimensional view of a resource or outcome
system of metrics
A ____ is a single performance measurement used to evaluate, motivate, improve, etc.
metric
____ ____ is measuring employee performance for the purpose of motivation, improvement, statistical reference, promotion, termination, etc.
performance measurement
Metrics can help identify ____, ____, areas of improvement, and areas of decline
strengths, weaknesses
Metrics can create a platform for ____ recognition and/or promotion of people, groups, and companies
unbiased
Good metrics often ____ good employee behaviors
influence
____ ____ allow the very top executives at Ford to understand which facilities are performing well or struggling on a daily basis without having to be at each of those facilities
performance metrics
Metrics can sometimes point to ____ ____
corrective actions
Good metrics often signal ____
patterns
Common measurement pitfalls in an organization
- Managers fail to use the data
- Blind belief in institutional metrics
- Measuring selectively
- Utilizing too many metrics
____ ____ is a situation where managers are inundated with data
managerial paralysis
A ____ ____ ____ is an individual performance metric identified by the company as being imperative to achieving the organization’s most important goals
key performance indicator
A ____ ____ ____ allows managers to get a more detailed view of the elements that might constitute or explain the KPI
KPI drill down
Attributes of a good metric
- Measurable
- Easily understood
- Attainable
- Strategically oriented
- Easy to measure
- Corrective actions
- Cheater proof
Consequences of poor metrics
- Supply chain goals are not met
- Poor output and bad decisions
- Waste
- Undesirable employee behaviors
- Employee victimization
- Decay in corporate culture
3 Key attributes for a measurement system
- e____
- e____
- a____
effectiveness, efficiency, adaptability
____ is a measure of desired outcomes
effectiveness
____ is a measure of the resources used in the process of achieving the desired outcomes
efficiency
____ is a measure of the conditions under which the tasks were completed
adaptability
A ____ ____ is a computer-generated visual representation of a company’s performance that is often available to executives on nearly any of their digital devices
executive dashboard
A ____ ____ is a performance management tool that focuses on both strategic activity and strategic outcomes
balanced scorecard
____ results utilize some basic financial metrics related to cost, revenues, and profits
financial
____-____ results measure to see if the company is meeting the customers’ product and/or service requirements as well as customer satisfaction expectations
customer-related
____ ____ ____ results measure to see that the business processes in the supply chain are running efficiently and effectively
internal business process
____ ____ ____ results measure the working environment, the dedication to continuous improvement and other issues that are related to the company’s human resources
learning and growth
The ____ ____ is a measurement tool that enables supply chain partners to track performance, communicate progress and develop opportunities for improvement
SCOR model
Bad metrics in business
- profit
- productivity
- quarterly numbers
- opening new accounts
The five primary supply chain processes are
- Plan
- Source
- Make
- Deliver
- Return
The traditional supply chain analytics tools include:
- descriptive analytics
- diagnostic analytics
- predictive analytics
- prescriptive analytics
Some of the more modern and advanced analytics tools include:
- Internet of Things (IoT)
- supply chain optimization
- cognitive analytics
- supply chain modeling
____ ____ ____ is the documentation of all the facilities, suppliers, customers, and other supply chain partners in a supply chain
supply chain mapping
____ analytics report the past and or present results of the supply chain
descriptive
____ analytics attempt to explain why recent results may have occurred
diagnostic
____ analytics provide probabilities for different supply chain outcomes
predictive
____ analytics are supply chain models that provide recommendations for different supply chain decisions, actions, or strategies
prescriptive
The ____ ____ ____ are a network of objects that all have digital sensors
internet of things
____ ____ ____ is an advanced form of analytics that utilizes historical data, forecasts and real-time data to create a sophisticated inventory and resource plan to manage costs and meet demand
supply chain optimization
A ____ ____ ____ is a network that utilizes multiple technologies and tools like traditional analytics, IoT, machine learning, and AI to predict, plan, execute, learn, and communicate across the supply chain at a much faster pace than humans
cognitive supply chain
____ ____ ____ are simulations that attempt to explain an entire supply chain or perhaps just a supply chain process
supply chain modeling
Empowering every employee to be a quality inspector and manager is known as ____ ____ ____ ____
quality at the source
____-____ is when lean companies will find ways to completely eliminate certain types of errors
poka-yoke
