local optimization can do what?
Maximizing local profit or minimizing cost in a supply chain is best described as?
magnify fluctuations
(marketing forgets to tell OM something is on sale, surge in demand, may run out)
What type of negotiation strategy is based on published, auction, or indexed prices?
market-based price model
A supply chain ends with? starts with?
a satisfied customer.
raw materials
What is transferring a firm's activities that have traditionally been internal to external suppliers?
outsourcing
The advantage of having few suppliers is to
form a long-term relationship.
With regard to the cost-based price model negotiation strategy, which of the following is true?
Prices are based upon supplier costs.
Which of the following statements is TRUE?
a. When multiple suppliers are used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.
b. It is usually less risky to use single suppliers rather than multiple suppliers.
c. When multiple suppliers are used, having geographically centralized suppliers could lessen the probability of all failing simultaneously.
d. The risk mitigation effectiveness of using multiple suppliers has nothing to do with the probability of a super-event occurring.
When multiple suppliers are used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.
Which of the following is NOT one of the major causes of the bullwhip effect?
shared demand information.
What term is used to describe the outsourcing of logistics?
Third Party Logistics
The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________.
Outsourcing.
Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?
airfreight
The trucking industry is establishing Web sites, which let shippers and truckers find each other in order to ________.
improve logistics efficiency
A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.
dropshipping
Which of the following is not an advantage of the "few suppliers" concept?
Sharing trade secrets between firms
Which one of the following performance measures is not true of a world class firm?
Long lead time
The purchasing approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.
-commodity products, suppliers compete, purchasing based on 1 price
many suppliers
Which of the following is an aspect of environmental risk in supply-chain management?
political issues
With the growth of the JIT, which of the following distribution systems has been the biggest loser?
railroads
A disadvantage of the "few suppliers" strategy is __________.
the high cost of changing partners
The three major variations of online catalogs are grouped by __________.
Internet trading exchange provides a centralized online system for certain industries and elimiates the need to contact multiple companies
online auctions: way to unload excess material or inventory, low barriers to enter. reverse auction for buyers- buyer intiated the process by submitting the desired product or service, potential suppliers then submit bids, bid in downward direction
vendors, intermediaries, and buyer exchange systems
Which of the following is an opportunity for effective management in the supply chain?
channel assembly
Local optimization is a supply-chain complication best described as __________.
optimizing one's local area without full knowledge of the organizational need
What type of negotiation strategy requires the supplier to open its books to the purchasers?
cost-based price model
What type of negotiation strategy does not generally foster long-term relationships?
competitive bidding
Which of the following is not a concern of the supply chain?
maintenance scheduling
Keeping a product generic as long as possible before customizing is known as __________.
postponement
Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?
long term partnering with a few suppliers
Which of the following best describes vertical integration?
developing the ability to produce goods or services previously purchased
addit info-integration may be forward, towards the customer, or backwards, towards suppliers
-Can
improve cost, quality, delivery, and inventory but requires capital, managerial skills, and demand
Which one of the following is NOT a supply-chain strategy?
Short-term relationship with few suppliers
A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer, therefore, places an even larger order with the lobsterman. This is the result of __________.
the bullwhip effect
The three classic types of negotiation strategies are __________.
cost-based price model, market-based price model, and competitive bidding
More reliance on supply chains means ____________
Fewer suppliers____?
more risk
increase dependence
Occurs when orders are relayed through the supply chain with fluctuations increasing at each step.
bullwhip effect
When calculating bullwhip effect, if measure is greater than one then ________.
If less
than one, then_______.
1. variance amplification is present
2. smoothing or dampening is occuring
Disaster risks are also known as
decision trees
________ reduce shipping and productions costs BUT increase inventory holding and do not reflect annual sales.
large lots *contribute to bullwhip
Which shipping system moves the vast majority of manufactured goods?
trucking
Which of the following is true regarding the cost and speed of shipments?
Faster methods tend to involve smaller shipment sizes while slower methods involve very large shipment sizes.
Hoarding supplies for fear of a supply shortage?
shortage gaming
Large, infrequent orders leading suppliers to order even larger amounts?
order batching
What is the technique where a manufacturer sends individual components (rather than assembled units) to a distributor?
channel assembly
The four stages of supplier selection, in order, are:
supplier evaluation, supplier development, negotiations, and contracting
Supplier selection technique
factor weighting technique objectively analyzes a variety of factors both quantitative and qualitative
-each factor assigned weight,each supplier scored on factors, choose one with
best
The objective of supply chain management is to:
structure the supply chain to maximize its competitive advantage and benefits to the ultimate consumer
What is choosing between obtaining products and services externally as opposed to producing them internally
Make-or-buy decisions
What are some advantages of joint?
formal collaboration, enhance skills,secure supply, reduce costs
Challenge of joint?
cooperation without diluting brand or conceding competitive advantage
Keiretsu Networks are a:
-middle ground between few suppliers and vertical integration
-Supplier becomes
part of the company coalition
-Often provide financial support for suppliers through ownership or loans
-Members expect long-term relationships and provide technical expertise and stable deliveries
what do virtual companies rely on?
variety of supplier relationships to provide services on demand
-Allow the creation of unique enterprises to meet changing market demands
-Relationships may be
short- or long-term
-Exceptionally lean performance, low capital investment, flexibility, and speed
push merchandise into the supply chain for sales that have not occurred
incentives
local optimization,incentives, large lots contribute to what?
bullwhip effect
*impact matters
vendor
based management
-which is a opportunity of integrating supply chain
has vendors maintaining inventory for the buyers, often physically doing so into directly the buyers facility
>creates mutually beneficial relationship between customer and supplier. availability of inventory at lowest cost
A supplier assumes the role of inventory planner for the customer
1. set clear expectation
2. share information
3.collaborating
-reduces stockouts, less risk, lower cost
long term commitments with suppliers to purchase items which are later delievered
when actual order is released
blanket order
standardization
involves use of common components of different products and cross production facilites
Some companies require for supplier certification:
qualification,education,certification
contracting
besides rules of engagement for relationship, it moderns the supply chain contract is crafted to enable the parties to share risk, benefits, and creating incentives
e-procedurement
what three forms do the catalogs it come in?
speeds purchasing, reduces costs, integrates supply chain
provided by the vendors,intermediaries,industry specfic changes often develop by buyers
objective of logistics management?
obtain efficient operations through the integration of all material acquisition, movement, and storage activities
--essentially moving and storing goods through supply chain
-frequenctly used for outsourcing
core competencies of outsourcing
value, rare, difficult for replication
comine two modes of transportation into one
multimodal
biggest effect in lead time?
transportation
warehouses can perform consolidation and break-bulk to reduce shipping costs by taking advantage of
full truck load discounts
Outsourcing logistics can reduce inventory, costs, and improve delivery reliability and speed. through what?
also:coordinate supplier inventory with delivery services
May provide warehousing, assembly, testing, shipping, customs
third party logistics
the design distrubtion networks to meet customer expectation suggests three criteria:
rapid response-more locations/availability
product choice-products available/online
service
3 primary cost considerations when determining the best number of distribution facilities
inventory costs-costs w/maintaining
inv
transportation costs-close to 70%
facility costs-costs w/running facilites
make up logistics costs
Which of the following is NOT one of the sources?
well the sources are:
many suppliers
few suppliers
vertical integration
joint ventures
keiretsu networks
virtual companies
T or F: Most of the revenues do not go towards purchases
false
Which is the false answer?
Short term relationships with few suppliers
What is the bullwhip formula?
variance of orders / variance of demand
any company with multiple facilites must determine which products to procure centrally for all the sites and which to purchase locally at each site
anedoctes can be found in many firms about different branches getting different deals from the same supplier
Leverage volume
Develop specialized staff
Develop supplier relationships
Maintain professional control
Devote resources to selection and negotiation
Reduce duplication of tasks
Promote standardization
centralized purchasing
storing goods in a warehouse for a long period of time remains an ever present activity in many industries.
often less expensive than alternatives such as: accepting back orders,losing sales, paying for express delievery, or storing goods at local sites
may use conveyor belt systems due to size
warehousing
through innovate scheduling of shipments, warehouses can perform consolidation and break bulk activites to reduce shipping costs by taking advantages of full truck load discounts
true
via channel assembly, warehouse can be a excellent place for implementing what?
postponement
integration may be forward, towards the customer, or backwards, towards suppliers through what
vertical integration
how is accurate pull data generated?
by sharing point of sales information and computer assisted ordering
a lot size reduction occurs when?
the benefits of large orders are diminished
ex.providing discounts based on annual volume rather than units per order or reducing cost of placing the order
single stage control of replishment does what?
implies designating one supply chain number to monitor and manage inventory for the whole system
Collaborative planning, forecasting, and replenishment (CPFR)
involves members of the supply chain: sharing, planning, forecasting, and inventory info with each other
electric ordering funds transfer do what
reduce paperwork and reduce transaction costs
bypasses the seller and reduces costs. ships components directly to customers w/out using seller
dropshipping
Speeds purchasing, reduces costs, integrates supply chain
E-procurement
What does the S stand for?
super event
What does the U stand for?
unique event