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SCM 300 Exam 1 2024 QUESTIONS & ANSWERS.
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SCM 300 Exam 1 2024 QUESTIONS & ANSWERS.
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10/5/24, 6:04 PMSCM 300 Exam 1
Jeremiah
Terms in this set (87)
3 branches of supply chain procurement (purchasing), operation, logistics, reverse
the branch of supply chain where deals happen, negotiations for the best price on
Procurement (purchasing)
materials, equipment, goods, and services. acquiring materials and placing orders.
the branch responsible for making business processes effective and efficient (help
Operations
create high quality products/services using fewest resources possible).
is concerned with transportation, finding the right partners or best ways to get the
Logistics
product or service from origin to consumption.
Q - lot size
D - annual demand
Key variable in elementary inventory
C - cost to purchase one unite
calculations
H - cost to hold on unit of inventory in one year
S - cost to place a single order
Annual cost to purchase inventory DC
Annual Holding Cost (AHC) (Q/2)*H
Annual Ordering Cost (AOC) (D/Q)S
Equation for total cost DC + AHC + AOC
the lot size that minimizes total annual inventory holding and ordering costs, making
it the optimal lot size
Economic Order Quantity (EOQ) = SQRT (2DS/H)
if a manager is looking to minimize inventory costs and maximize total annual savings
then he would calculate optimal lot size through this formula.
the pace at which product must move through the assembly line in order for the
Cycle time assembly line to keep pace with demand.
= Operating Time/D
Theoretical Minimum number of total task time / cycle time
workstations calculations (TM)
3 Supply Chain Flows Money, material, information
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the direction that points towards the end customer
downstream supply chain Ex: delivering goods from a manufacturer to a distributor. main suppliers s1 working
to get parts prepared in time for manufacturer.
going backwards, moving towards the supplier.
ex: finding ways to maximize efficiency coming back. see if all the boxes that have
Upstream Supply Chain arrived at the retailer are empty and not damaged to send them beck for reuse.
developing relationships with the companies first tier supplier to enhance and better
communication.
cost, quality, speed, flexibility
Supply chain competitive priorities For example, a fast food restaurant will customize these priorities differently from a
higher up restaunt
Cost material, energy, waste, transportation
Quality design, reliability, consistency, materials or fabrics
speed delivery, on time, innovative time
flexibility customization, size of orders, design
-raw materials
-work in process
-finished goods
-maintenance, repair, and operating
Types of inventory -market inventory
-safety stock (buffer stock)
-anticipation inventory
-pipeline inventory
-inventory visibility
materials that will be used to create an item or a service. Have not yet begun
Raw materials
their manufacture to create them into a good or a service.
Items that have gone through the manufacturing but have not been
Work in Process (WIP)
completed. Example, a partially assembled shovel.
Finished Goods items that have completed manufacturing and are ready for shipment.
Items that are not intended for the Finished
Maintenance, Repair, and Operations goods but are important to the day to day operations of the business. (Examples,
(MRO) Desks,
papers, computers, cleaning material for the office, and so on)
Market Inventory Inventory readily available on the shelfs, like "Ragu Tomato sauce."
inventory to insure demand is met, if a company ships 100 soccer balls every Sunday
Safety Stock (buffer stock)
of the week, for Buffer stock they would ship 125, the extra 25 is the buffer stock
Anticipation Inventory Inventory created for the purpose of storage to use in the future
Inventory that is moving from one point in the supply chain to another.
For example, the amount of time it takes a shovel from raw material (Point A) to being
Pipeline Inventory
on the shelves (Point B). this is also known as lead time.
1. To calculate Pipeline inventory, you = Periodic Demand* Lead time.
The ability to see what is happening with inventory upstream and downstream in a
Inventory Visibility (Supply chain visibility)
supply chain.
a three-party system made up of, retailer (show casing products),
Manufacturer (creating the goods and services to be sold), and the consumer (the
Drop shipment
person
ordering). Cutting out the middle man in the process.
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