SCM300 Exam 1

  1. vertically integrated firm
    a firm whose business boundaries include one-time suppliers and/or customers
  2. collaborative approach to making and distributing products and services to customers
    strategic partnerships
  3. generic supply chain flow
    • 1. firms extracting raw materials from the ground (iron ore, wood, oil)
    • 2. selling these to suppliers (lumber companies, raw food distributors)
    • 3. turn raw materials into materials useable by manufacturers (sheet steel, aluminum, lumber)
    • 4. component manufacturers make and sell intermediate components (electrical wire, fabrics)
    • 5. final-products manufacturers (coca-cola, boeing) assemble finished goods and sell to wholesalers
  4. reverse logistics activites
    returned product, warranty repairs, recycled product.
  5. focal firm
    end-product manufacturer (boeing, general motors, coca-cola)
  6. key to developing effective supply chain management
    keeping the customer in mind
  7. supply chain management
    idea of coordinating or integrating a number of product-related activities among supply chain participants to improve operating efficiencies, quality, and customer service in order to gain a sustainable competitive advantage for all of the collaborating organizations.
  8. who has the most to gain from supply chains?
    firms with large system inventories, many suppliers, complex product assemblies, and large purchasing budgets.
  9. bullwhip effect
    supply chain safety stock, forecasting, and production problems. Caused by forecasts not being met.
  10. business process reengineering (BPR)
    radical rethinking and redesigning of business processes to reduce waste and increase performance.
  11. third-party logistics providers (3PLs)
    used to ensure a continuous, uninterrupted supply of goods.
  12. supply chain management in wholesaling and retailing industries is referred to as:
    quick response (QR) service response logistics, or integrated logistics
  13. supplier management
    encouraging or helping the firm's suppliers to perform.
  14. supplier evaluation
    determining the current capabilities of suppliers.
  15. effective supplier management allows:
    firms to selectively screen out poor-performing suppliers and build successful, trusting relationships with the remaining top-performing suppliers.
  16. advantages of operating on a global scale
    larger market for products, lower labor costs
  17. risks of operating on a global scale
    fluctuating exchange rates, tariffs, taxes
  18. How can firms avoid problems with global operation
    use a number of suppliers, manufacturing, and storage facilities in various foreign locations
  19. successful supply chain integration occurs when:
    participants realize that supply chain management must become part of the firms' strategic planning processes, where objectives are based on the end-customers' needs.
  20. supply chain expansion is occurring on two fronts:
    increasing the breadth of the supply chain to include foreign manufacturing, and increasing the depth of the supply chain to include second- and third-tier suppliers and customers.
  21. second-tier suppliers and customers are:
    suppliers' suppliers and the customers' customers
  22. three corporate goals are:
    value, productivity, growth
  23. Procurement
    process of obtaining services, supplies, and equipment in conformance with corporate regulations
  24. operations
    design, operation, and improvement of production systems that efficiently transform inputs into finished good and services, while maximizing productivity.
  25. logistics
    coordinated planning and execution of product distribution, transport, warehousing
  26. steps in corporate strategy and management
    • 1. research and planning
    • 2. design
    • 3. business models
    • 4. managing the supply chain
    • 5. selling the product
    • 6. service, support, repairs, maintenance, returns
  27. independent demand item
    items for which demand is influenced by market conditions. Demand is not related to demand for other items in stock or produced.
  28. dependent demand item
    items that are required as components or inputs to other products or services.
  29. lead time
    time elapsed between customer placing order and order being received by customer
  30. lot size
    typically refers to the order size
  31. SKU
    stock keeping unit. Unique identifying number used to track each unique product customers can purchase.
  32. market inventory
    readily available on the shelf
  33. safety stock
    protects against uncertainty: it is not intended to be used.
  34. anticipation inventory
    used to absorb uneven rates of demand or supply
  35. pipeline inventory
    inventory "on its way" to the customer
  36. backward integration
    taking over the role of your supplier
  37. forward integration
    taking over the role of companies closer to the customer
  38. bulk cargo
    free flowing, stored loose (coal, grain, rice, oil)
  39. breakbulk cargo
    general or packaged cargo, typically containerized.
  40. neo-bulk cargo
    characteristics of both bulk and breakbulk cargo (cars, logs, steel)
  41. mulitmodal
    use of more than one mode of transport during a single shipment
  42. intermodal
    seamless multimodal shipment - no need to unload container or repackage products
  43. dunnage
    used to fill empty space inside boxes, tubes, etc (packing peanuts, styrofoam)
  44. primary packaging
    in contact with the end item (plastic bag, can, bottle, shrink wrap)
  45. secondary packaging
    contains end item and primary packaging (box, case, drum)
  46. tertiary packaging
    contains several items which are in secondary packaging (crate, pallet, metal straps)
  47. 3PLs
    third party logistics company
  48. freight forwarders
    travel agents for exports
  49. customs house brokers
    help items clear foreign customs
Card Set
SCM300 Exam 1
SCM300 exam 1 notes