Exam (elaborations)
SCM 300 Final Exam with correct Answers 100%
- Course
- Institution
SCM 300 Final Exam with correct Answers
[Show more]
Content preview
SCM 300 Final Exam with correctAnswers
Competitive Priorities: - Answer -1. Cost-material costs, production costs, packaging
costs, all costs throughout the supply chain
2. Quality-design, material and production, level of quality, consistent, service quality
3. Flexibility-product or customization flexibility, volume flexibility, mass customization,
facility, employee, service flexibility
4. Speed-lead time, on time delivery
Productivity: - Answer --the organizational perspective
-What did I make? (outputs)/What was the cost? (inputs)
Value: - Answer --customer perspective
-What do I get? (quantity, quality, size)/ What is the price? (money, waiting time,
warranty)
Procurement: - Answer --Responsible for acquiring materials, equipment, products and
services, finding suppliers that offer the best value, purchasing negotiations, managing
supplier relationships and developing long-term relationships with suppliers so
consistent and improved quality can be expected in the long run
Logistics: - Answer --Responsible for developing the transportation itinerary and finding
the appropriate transportation and storage partners to successfully navigate the flow of
materials from the point of origin to the destination
-Distribution/Warehousing, Infrastructure Mgmt.
Packaging, containerization, transportation, documentation, third party management
and communication
Supply Chain Management: - Answer --Efficient integration of suppliers and
manufacturers, transporters, DC and warehouses, retailers and all other parties tasked
with the successful delivery of the final product or service
Operations Management: - Answer --management responsible for making business
processes effective and efficient, help the organization create high quality
products/services using the fewest resource possible (maximizing productivity)
Downstream: - Answer --The direction that points towards the end consumer
,Upstream: - Answer --the direction that points towards the supplier
Reverse Logistics: - Answer --The management of products that flow backward in the
supply chain, away from the consumer and back in the direction of manufacturers
(management of materials moving upstream)
1st and 2nd Tier Suppliers: - Answer --1st tier: a company's direct suppliers, directly
providing goods and services to the company
-2nd tier: a firm that provides goods/services to a company's first tier supplier
Safety Stock: - Answer --inventory that the company doesn't ever plan to use but is
there for insurance, protects against uncertainty in demand, lead time, and supply.
Pipeline Inventory: - Answer --inventory in transit between two points. Those two points
establish the pipeline. So the inventory does not necessarily need to be on a truck or
train, orders that have been placed but not yet received nor paid by the customer,
inventory on its way to the customer
-should have enough inventory to account for the demand for the period of time it takes
a product to move from point A to point B - lead time.
Vertical Integration: - Answer --the act of a company taking on additional supply chain
responsibilities that were formerly done by outside parties. There are two classes of
vertical integration:
-Forward integration: Taking over supply chain responsibilities formerly performed by
downstream supply chain partners. (Example: A bakery decides to open up a sandwich
shop and use their own bread)
-Backward integration - Taking over supply chain responsibilities formerly performed by
upstream supply chain partners. (Ex: A bakery decides to purchase a flour company)
Benefits of High and Low Inventory Levels - Answer -PROS for High Inventory (Cons for
Low):
-buying the Inventory - Cost to purchase (consider quantity discounts)
-stocking out- Poor customer service levels
-paying the purchasing people- Costs to order inventory
-transportation: Ease, Cost
CONS for High Inventory (Pros for Low)
-Cost of holding ixnventory
-Materials handling - cost to handle inventory
-LOSS of Inventory - shrinkage/obsolescence
-ties up your cash-capital investment options
Economic Ordering Quantity (EOQ): - Answer --the lot size (Q) that will minimize total
annual inventory cost (TC), the optimal lot size
-annual holding cost= annual ordering cost
, -if AHC is greater than AOC, holding costs are too high so decrease lot size to reduce
TC (you are to the right of EOQ on the graph)
-if AOC is greater than AHC, holding costs are too low, so increase lot size to reduce
TC (to the left of EOQ on the graph)
Considerations in Choosing Suppliers: - Answer -1. Cost/Price-delivery, shrinkage,
insurance, financing, taxes, other industry specific charges
2. Quality-commitment to improvement, consistency
3. Time-reliability, lead time, on-time delivery
4. Flexibility-order sizes, lot sizes, frequency of delivery/orders, specifications,
customizations, services
Line Flow: - Answer --a manufacturing strategy and layout that typically works well in
producing end items (or services) that have relatively high demand and that require very
little (if any) customization.
- The work centers are located in a linear path. Items begin on one end of the line and
continue in a linear path to the last work center. Each work center performs the exact
same work to every unit that passes through that work center.
-assembly line system: can typically be stopped at any time without compromising the
inventory flowing through the system.
-continuous flow system: must run to completion once the process has been started
( baking bread)
Flexible Flow: - Answer --A manufacturing strategy and layout that typically works well
for producing end items (or services) that have relatively low demand levels and that
may require a high level of customization. The work centers focus on a particular type of
function like drilling, sanding, welding, painting, assembly, etc. While each work center
performs a single function, a large degree of variation is possible at each workstation
(painting work center)
-a physical therapy facility
Hybrid System: - Answer --combines elements of both line flow and flexible flow layouts.
In this layout, products may pass through a layout in a linear fashion, but each
workstation would have the ability to allow for some level of customization.
-Items requiring low degrees of customization may be created in hybrid systems that
very much resemble line flow systems except for one or two areas while items requiring
higher degrees of customization may only utilize line flow elements in a few parts of
their facility.
Cycle Time: - Answer --the pace at which product must move through the assembly line
in order for the assembly line to keep pace with demand, the max amount of time
allowed for work on one unit at each station
-if cycle time is 30 seconds, then one unit comes off the production line every 30
seconds. You could make 120 items/hour.
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 millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
