Class notes
Mar 3023 Exam 3 Review Notes
- Course
- MAR 3023
- Institution
- Florida Atlantic University
This is a comprehensive and detailed exam 3 review note for Mar 3023. *Essential Study Material!!
[Show more]
Content preview
Suppl yChai n:l ink e
ds etofc omp a niestha tperformo rsuppo rtthed eli
ver
yo fac ompany’sprod uctsors er
vice
stocust
omers(3+c o
mp ani
esl
ink
ed
byon eormo reoft heu pst
ream flo wso fpro ducts
Deliversvalue:t otheen dusero fpr o ductsatt herightplac eandt ime
Cutc ostsprovideinno vat
ion,en sureq uali
ty,an dd e
liverproducts
Downs t
ream:flo wofp r
oduc tstot h ecustome rs
Upst r
eam:t heflo woffin anc i
alr esourc e
st hatmo vefro mth ec ust
omert ot hecompaniesthatwe r
ea rtoft
hesuppl
yc ha
in
DistributionCha nne l
s(Ma r
ke tingChanne l
)ar ewho l
esalers
,d ist
ribut
ors,an dreta
ile
rs,throughwhi c htheflo wofproduct
strave
ls
Value:ma k eitavaila
bletos hipt oth ene xts t
ep,takeor ders,shiptot heproduc ttonextst
ep
Sup pl
yChai nI ntegrat
ion:be t
te rcu stome rservice,reducedc osts,effic ientr e
source
s,respondt oc hange
fie ntat
ion:p hil
osophyt hatguid est hea cti
onsofc omp anyme mbe rsto
wa rdth egoalofactiv
elyma nagingtheupst
rea
ma ndd ownst
rea
m flo wsof
good s
,a nds er
vice,fina nces,a ndi nfo
SupplyCha inMa n
a gement:action st hefrimt akestoc oordinateth evari
ousflo wswi t
hinas uppl ychain
(ExWa lmartRe tai
lLi nk;sett
ingu pt hetec hnologyise nablingthei nfosharing)
InventoryCa rryingCos ts
:ma kin go rbu y i
ngt hepr oduct( Taxes,in s
urance,spa ce)
Int
eg r
a t
edSup plyCh ai
n:*Re lations hipBa sedSt rat
egiesre al
izemu lt
ipl
ebe nefit sr
educedc osts,bett
ers er
vice
,effic ien
cy )
Comp anie
smus tbewi lli
ngtoe mbr acer el
a ti
onship-baseds tr
ategies
Suppl yCha i
nSt rategi es:
PushSt rat
egy( Spe cul at on)
i :*Lo we rcos ts/go odsb asedons alesforeca s
t,putsthoseg oo dsintostoragewait
sforacust
omert
oordert
hepr
oduct
1. Ac hiev eEc ono mi eso fSc ale:t ranspor t
.c anmo v efulltr
u cksl o
we rsper-unit
2. Pos iti
ve l
yAffe ctCu s t
ome rSe r
vicebcg oodsa rea l
readyins tock
Disad vant
ages :Ina cc urates alesf orec a
st ;toomu c
hi n ventor y
Re spo nds lo wl ytode ma ndc h ang e
In vent oryc arr yingc o st
sa ree xpe nsive25- 30%
Thepr omot onp
i us hs trate gyr e l
ie sont h es al
e sfo rcea ndpr omota cti
cstop ushpr oduc t
st owho lesal
ers
PullStrate
gy( Re spo ns i
v eSu ppl y):c ustome ror de rsdr ivema nu f
acturinga ndd i
stributi
ono ps.*CUSTOMI ZED
1. El imi na tesr iska s soc iatedwi thp roduc i
n gun wa ntedp r
oduc t
s
2. Cu stomi z ep ro duc tst oc us t
ome rr equireme n ts
3. I nve ntoryc arry ingc ostsa remi nimi zed
4. Fi rmc a nre sp ondr ap idlyt oc ha ngingma r
k etc ond i
ti
ons
Disad vant
ages :Ca nn otus ee c on omi esofs cale
Fle xib i
lityi sha rdt oa c hi
e ve
Thepr omotionpu llst rategyi nvo lveshe a vys pendi ngf ora dsa ndp romo ,tocreated ema ndt hatpul
l sprodu
ctsthr
oughthec
hanne
ls
Hybr id(Push- Pull):s alesf or eca stinitials tageso fth es upplyc haino perateonapu shs ystem,BUTc omplet
ionofprod
ucti
sbase
donPullSys
tem
1. Combi ne st hee co nomi e sofs c al
eoft hepu shs tr
a t
egywi ththefle xi
bi l
ityoft hepu ll
2. Pr o du cesa c cura tes alesf oreca stb cfir mst e ndt obemo rea ccurat
ea taggr e
g at
el e
v el
Disadvan tage:NOTc o stc ompe ti
tive
Inc urc os tstos tor ec o
mp one ntsi nin vent
ory
De v elopdi str
ibu tions ystemt hatc and eli
verp roductstoa voidcompl a
ints
Selec
tingAp pro priateSt rateg y
1. St abi lityo fDe mand:i fitcantpr edictde ma ndsi tcantcreatea ccura
tes al
e sforecast
(*
Int r
o ,gr
o wths ta ges )Choo sePu ll/Hy br i
d
2 .De gr eeo fCo stCo mpe titivenes s:ifc ostre duc ti
oni sag oalt h
a nPu shStrategyi sgood
3 .De gr eeo fCus tomi za tion:Pu ll/Hybr idc hoi cef orc ompa n
yt ha tcomp et
e son
A.a bili
tytode l
ive rcu stomp ro duc ts
B.hi ghlevelo fc ustome rs e rvice
4 .Spe eda tWhi chCus to me rsbuyPr oduc t:Pus hs trat
e gy
LeadTi me:ti
mef rom pl ace me nto ftheo rdertode liveryoft hegoods
Lo gist
ics :ma na gementth atp lans,impl e
me nts,andc o ntrol
st heflo wo fgoods,servic
esa ndin
formati
onbetwee nthep oi
ntofori
ginandthefina
l
custome r
Logi s
ticians:s upervisi
ngt ruc kinga ndwa rehousep ersonn el
De terminingi n v
e ntoryin
gs houldbes t
or ed
Ana lyzingh o wmuc hproducttos hi
pf r omd i
str
ibuti
onc ente
rsa ndstore
sa ndwhen
Ar rangingforma t eri
alsandp r
o ductstobebou ghtandmo v
ed
Ac hieve:“ th
es ev enRso fLo gisti
c s”
De li
veringt heRI GHTp rodu ct,tot heRIGHTp la
c e
,t ot heRI GHTc ustome r
,att h
eRI GHTt i
me,intheRIGHTqu anti
ty,intheRIGHTc ondi
ti
on
anda ttheRI GHTpr ice
(Ca nserv ea sthec omp et
i t
ivea dva ntage)
Impac to fLo gisti
cs:TheFo urP’ ’s
Plac :De
e liveri
n gprodu ctsands erv i
cestothec orre
c tloc a
tion,andinat imelyma nner
(Satis
factioni sak e
yt oinc r
e asingma rke
ts ha
re)
Pric :Effe
e ctsp r
icethro ughe ffic ientpurchasing ,inventorywarehousing,andt r
ansport
ati
onproces
sesthatkeepc ost
sdo wn
Pro duct:I sin flue nc edb yi nputf roml ogi
sti
c sma nag ersa b
utp acka
gingne edsfors a
feeffic i
entst
orage
Pro motion :Promosl e adtoi nc re
as eins a
lesvolume .En suresuffic ientma t
er i
als
,inventor
y,st
orage
,andtransporta
ti
ona reava
ila
bletohandl
e
Ma nufac turingOpe rations :rece i
v i
ng,stori
ng,a ndr etrie
vingma t
eri
alsn e
ededi nproducti
on
, Fi
nanc:a
e mountofin
vent
oryacompan
yholdsa
ndt
heco
stsofwar
ehousi
nga
ndt
ran
sport
ati
onaffe
ct(
ROI
)
Cust
omerSe
r vi
ce:howwellma
nger
sperf
ormaffec
tsc
usto
me rs
ervi
cewhi
cha
ffe ctr
evenue
Al
igningLo gis
ticswSup plyCha i
nS tr
ate
gie:
s
Comp aniest hatpu r
suePus hSt ra
tegy:ha
vetose tupl ogist
icsopsthathandlelargerv ol
ume( *Benefitfrom)
Mo desoftra nsportatio
n;c ontainershi
psrai
lroa
dsa n dc heaplyhandlelar
gea mount sofproduct
Largewa r
e hous ese qui
ppe dt oeffic i
entl
ystore,retrieve,andloadgoodson tov ehic
lesontovehi
cl
esatfas
tpa
ce
Comp aniest hatpu r
suePul lStrat
egy:Est
abli
sho pso ns ervicequal
ity,
innovati
on ,fle xibil
it
y
Suppli
e r
sth atp roducea ndd eli
v e
rq ui
ckl
y.Ma n
a gerstryt ofin dsuppli
ersthatcanoffe rshortl
eadti
me s
Transport
ationt oe nsureo nt i
mede li
very
Advanc e
dt ec h
no logyt oinc r
easerespons
ivene
ssa ndfle xibil
it
yoflogist
icsope rat
ions
EnterpriseRe sour cePlanni ngSy st
em:d a
tama nag eme ntsyste
mst hati
ntegra
tei nformati
ona c
rossal
ldept
s,
EDI:ERPs y s
temsc anco mmuni catewit
hITs ystemso fo thercompa n
iesby;Ena blingana l
most-i
nst
ant
aneoust
rans
ferofi
nfor
mat
ionf
rom one
comp a
n y’
sc omput ertoano therREACTI NGTOCUSTOMERDEMAND
ThirdPar tyLo gist
ics( 3PLS :c
) ompa niespe r
forms omeo ra llofitslo gisticsacti
vitiesforo t
he rco mpanie
s
(Spe ci
a l
izeint ranspor t
atio
no rwa r
e h
o usingforothercompa nies)re turna ndr epairpr oducts,customsc l
eara
nce
Lo gisti
cFunc tions :
Ma n agingI n
v entories:cust
ome rservicewi l
lsuffe rifthei n v
e n
tor yi sn otproperlyma naged
Type sofI nv entorie s:
Cy cli
ca lInventor :afir
y mc a r
ri
estome etaveragede ma nd
Pipe l
ineI nventory:*MOSTLI MITEDi nventoryINTRANSI Tbe twe ens upp l
iersa ndc ust
ome rs.(Promise
datala
terda
teduetohi
ghdeman
d)
*Ant i
cipativeSt ock:pr oducedorp urch a
sedwhe nac omp an yexpe ctss omee ventt hatwi l
lNEGATI VELYa ffects
toc
kavail
abi
li
ty
*Se asonalSt oc k:go odsafir ms ell
son lyatc er
taintime so fthey e arord urin
gc e rt
ains easons
Obs oleteI nvent ory:* LeastDe s
ira
blec ann olongerb eso ld,expired ,red esigned,o ver-
or d
ere d
Inve ntoryCos ts:
Purc hasingCo sts:co st
st oplaceandpr ocessordersma teri
a lsandfini shedg oods
Inventor y
-Ca rryingCos t
s:NEGATI VELYi mpa ctprofit s( Calculatedba sedonACTUALCOSTf oreachpar
t)
Out -of-
Stoc k:Stock outoc cur
swhe nac ompan ydoesn oth avee nou ghi nv entoryav aila
bletofil lanorder
(Ba ckor derorc anc eltheorder)
Inve ntoryTur ns:#o ft i
me safir mse nti
reinventoryiss olda ndr ep laced;c alc
ula tedbydi vidingt heCOGSbyt hecompany’sav
erag
einv
ent
ory
Da ysofSuppl y :estima t
eo fhowma nyd aysthefir msc u rrentinve ntorywi l
llast;c a
lculat
e dby
dividingt heCur r
e ntinv e
ntorybyt hea verageda il
yus ag eo rs ales
Pur
c h
asing:s
ourcinga ndp r
ocureme nto frawma t
eri
als
,compone nt
s,a
n dpart
s,fin i
shedgoodsandse
rvi
ces
-Mater
ialsac
countfor4 0-60% ofCOSTS
-Se
lect
ingsuppli
erstha tcanprovideh igh-qual
itygoodsandservi
c e
senablescompet
it
ion
-Havi
ngg oodsuppli
erse arl
yimpr ove sproductdesi
gn
-So
urcingma t
eri
alsfromr e
li
ables uppliersensure
sthattheflo wofg oodsinasuppl
yc ha
inme e
tsde
ma n
d
PurchasingActi
vitie
s :
Sel
ectandQua l
ifyAp pr opr
iat
eSupp lier
s
Negoti
ateContra
cts:forPu rch
a s
eOr ders:buyingstu
ff
MonitorSuppli
erPerfor mance:qua l
ity,on-ti
mede li
ver
y
Devel
opSupp li
ers:organizesuppliertrainingbycompa nyexpe
r t
sorprovi
defina n
cialas
sis
tanc
e
Re
-Shoring:s our
cinggoodsa n
ds e
rvic
esdome sti
cal
lyt
hatwereonc
epur
chas
edi
ntl
.
Mat
erialMa n age
me nt
:ma nagi
n gmate
ria
lsforma nu
fact
uri
ng
Ware
h ous
ing :holdi
nginventor
iesofbot
hintermedia
tema t
eri
al
sandfinis
hedg
oods
Di
str
ibuti
on :trans
port
ingg oodsfr
om wareh
ous etocus
tomers
*Ma teri
alsMa nag eme nt:inbo undinvolveme ntands t
orag eofma t
eria
lsinpreparat
ionf o
rt hos
ema t
eri
al
stoentera
ndflo wthr
ought
he
manufacturin
gp r
oc es
s
FourBe nefit s:
1. Re du cesprocur eme nt,tr
ansport
ation,andpr oductionthroughe conomieso fscal
e
2. Coor di
na t
essu pplya ndd emandf orma terials
.Cy cl
ical,saf
ety,a
nda ntic
ipativ
e
3. Su ppo rt
sma n
uf acturingacti
vates
4. Su ppo rt
sma n
uf act.Ob j.
byma kings uretha tgood sa r
ea vai
labl
et oshiptoc us
tome rsi
na neffic i
entmanner
Wa r
e h
ou si
ngFun cti
ons:
Storage:ho l
di n
gi nvent
o riesun ti
ltheyarene eded.Pr oduc tmu stbewa rehousedprope r
lytoe ns
ureth
ereisnodamage.
Mu stbeea
sil
yfo
undb
yst
ock
pic
ke r
s
Mo veme nt:Re ceivi
ng;un loa dinggoodsfromc arr
ier,upd atingin v
entoryandi nsp
e c
tion
Put-
Awa y:mo vi
ngg oodst ot he i
rtemporarys t
oragel ocationa ndupd ati
ngi nv
entory
Shipping:l
oa dingp i
ckedi temson t
ot r
ansportati
onv e hi
c l
e s
,up dati
ngr eco
rd s
Produc t
ion:a ssemb l
yofpr od uct
s,custo
mi zingpro du c
ts,re f
u r
bishingret
urnedg oods
Dist
r i
bution:s hipsitsg oodsf rom awa r
ehou setoi tsstoresa ndc us
tome r
s
Dist
r i
but i
onCe nter:typeo fwa re
h o
useu seds pec
ific all
yt ostoreandsh i
pfin ishedg oods
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller anyiamgeorge19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.39. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now