SCM300 Exam 2

  1. How can organizations benefit from studying procurement?
    Materials requirement, procurement of services
  2. How can organizations benefit from studying operations?
    • waiting lines
    • customer service processes
    • capacity issues
    • operational maintenance and services
  3. How can organizations benefit from studying logistics?
    • movement of stock
    • storage
    • packaging issues
    • delivery of orders
    • customer movements
  4. When developing a layout, what are some important considerations?
    • customer flow (how customers navigate)
    • product location (planograms, perimeter vs central, aisles)
  5. Facilitating goods
    physical items that make it possible to deliver the service
  6. What is VMI?
    Vendor Managed Inventory - inventory system where supplier accepts negotiated responsibilities that typically include monitoring and restocking
  7. Challenges of entering VMI agreements?
    • Goal alignment
    • process related (different way of getting things done)
    • performance and quality
    • people related
    • IT compatibility
  8. Priority Rule
    determines which customer to serve next
  9. finite
    few potential customers
  10. infinite
    many potential customers
  11. balking
    to refuse the line
  12. reneging
    being in line, then leaving because of a long wait
  13. jockeying
    customers move from line to line in hopes they will receive quicker service
  14. Basic responsibilities of supply chain
    • meet customer demand
    • contribute to profitability
    • continuous improvement
  15. front-end
    things the customer can see
  16. back-end
    things the customer cannot see
  17. upstream or downstream
    the direction in which materials might be flowing
  18. pull system
    products are based off of customer demand
  19. push system
    products are pushed to the customer
  20. old school american
    • push strategy
    • high inventory needed
    • suppliers are adversaries
    • silo mentality
    • company dictates what market will offer
    • best is always best
  21. JIT systems
    • eliminate waste
    • inventory is evil
    • open communication is required
    • flexible HR required
  22. postponement
    • PUSH through the standardized portions of manufacturing
    • PULL only the customization options offered to customers
  23. Pros of centralizing warehouses
    • lower required stock levels
    • less likely to stock out
    • warehouse operating costs decrease
  24. Cons of centralizing warehouse
    • distance/responsiveness
    • transportation costs
  25. square root rule
    √(Warehouses planned)/√(Present # of warehouses) * (Total stock present system) = total stock needed proposed system
  26. bullwhip effect
    very high and very low supply levels despite fairly constant demand levels
  27. causes of bullwhip
    • poor forecasting
    • order batching
    • price fluctuations
    • rationing
  28. how can globalization open opportunities for increased profits?
    • Increase revenue
    • decrease costs
  29. strategic issues of expanding globally
    • competition
    • legal issues
    • exchange rates
    • information management
  30. SCM related positives/negatives with expansion strategies
    • closer/further from supplies
    • closer/further from customers
    • cheaper/expensive overhead
  31. EMS
    Electronic Manufacturing Services - companies that can take on numerous primary supply chain responsibilities associated with the manufacturing of electronic components assembled end-items
  32. benefits of EMS
    • cost advantages
    • higher quality
    • higher flexibility
  33. Four Quadrants
    Image Upload 1
  34. challenges of procuring products and services at global level?
    • certification of suppliers and maintenance providers
    • developing relationships (trust, negotiate)
  35. C-TPAT
    customs-trade partnership against terrorism
  36. tier 1 of C-TPAT
    must perform risk analysis
  37. tier 2 of C-TPAT
    validated tier 1 findings by US customs
  38. tier 3
    Green lane - follow supply chain best practices
  39. Challenges of C-TPAT
    • cost to integrate IT
    • risks of sharing info with the gov.
    • HR issues (background checks, training, education)
  40. Benefits of C-TPAT
    • get through customs very quickly
    • disasters averted
    • safety
    • cost of container inspections
  41. types of companies hurt by increase of oil prices
    • retailers
    • JIT companies
    • fresh produce industry
Card Set
SCM300 Exam 2
SCM300 Exam 2