SCM 301 EXAM 2 LUKOFF STUDY GUIDE
Product Development and Commercialization
-Selecting new product ideas
-Developing new products and getting them to market quickly and effectively
-Assessing the success of each new product
-Developing customer feedback mechanisms
Facility Location affects....
efficiency and effectiveness of managing supply chains & a firm's overall competitive
advantage
facility location factors
Cost, customer service expectations, accessibility, and availability
Business Clusters
show that innovation and competition are geographically concentrated; their existence
provides clear evidence that innovation and successful competition are concentrated
geographically
Global Location Decisions are made to.......
optimize the performance of the supply chain and be consistent with the firm's
competitive strategy
firms competing on cost.....
will select location that provides a costadvantage in terms of logistics and inventory
costs.
Firms competing on speed of delivery.....
use the hub-and-spoke approach to determine location, with each hub being picked for
its central location and easy access to customers
six strategic roles depending on the strategic reason for the facility's location
offshore factory, source factory, server factory, contributor factory, outpost factory, lead
factory
Offshore Factory
,ow-cost w/ min. investment in tech. and managerial resources
source factory
broader strategic role with plant management heavily involved in supplier selection and
production planning
Server Factory
set up primarily to take advantage of government incentives, minimize exchange risk,
avoid tariff barriers, and reduce taxes and logistics costs
contributor factory
plays a greater strategic role by getting involved in product development and
engineering, production planning, critical procurement decisions, and developing
suppliers
Outpost Factory
set up in a location with/ an abundance of advanced suppliers, competitors, research
facilities, and knowledge centers to get access to the most current info on materials,
components, technologies, and products
Lead Factory
source of product and process innovation and competitive advantage for the entire
organization
countries with high tariffs (taxes).....
discourage importing of goods
WTO membership requires...
countries to open up markets and reduce tariffs on imported goods
Foreign Trade Zones (FTZ's)
where materialscan be imported duty-free as inputs to production that are exported
exchange rates
plays important role in costs of production in another country
, WTO Agreement
makes direct reference to sustainable development and the desire to protect and
preserve the environment
Access and Proximity to Markets
-Relocation to China for cheap labor and access to the market.
-In the service industry, proximity to customers is even more critical.
-Convenience is a factor in consumer choice.
Labor Issues Key Factors
-Labor availability, productivity, and skill
-Unemployment and underemployment rates
-Wage rates; turnover rates; labor force competitors
-Employment trends
Access to Suppliers
supplier proximity influences the delivery of materials and effectiveness of the supply
chain
Logistics Issues
Logistics costs, and ease and speed of transportation are important inlocation selection
strategy
Utility Availability and Cost
-Electricity supply has not kept pace with high speed of development.
-In heavy industries — cost and availability of energy are critical.
-China is the world's largest producer and installer of solar power in world.
quality of life issues
-Achieving Educational Excellence
-Growing a Vibrant Economy
-Preserving the Natural Environment
-Promoting Social Well-being and Harmony
-Enjoying Arts, Culture, and Recreation
-Sustaining a Healthy Community
-Maintaining Responsive Government
-Moving Around Efficiently and Safely
-Keeping the Community Safe
Product Development and Commercialization
-Selecting new product ideas
-Developing new products and getting them to market quickly and effectively
-Assessing the success of each new product
-Developing customer feedback mechanisms
Facility Location affects....
efficiency and effectiveness of managing supply chains & a firm's overall competitive
advantage
facility location factors
Cost, customer service expectations, accessibility, and availability
Business Clusters
show that innovation and competition are geographically concentrated; their existence
provides clear evidence that innovation and successful competition are concentrated
geographically
Global Location Decisions are made to.......
optimize the performance of the supply chain and be consistent with the firm's
competitive strategy
firms competing on cost.....
will select location that provides a costadvantage in terms of logistics and inventory
costs.
Firms competing on speed of delivery.....
use the hub-and-spoke approach to determine location, with each hub being picked for
its central location and easy access to customers
six strategic roles depending on the strategic reason for the facility's location
offshore factory, source factory, server factory, contributor factory, outpost factory, lead
factory
Offshore Factory
,ow-cost w/ min. investment in tech. and managerial resources
source factory
broader strategic role with plant management heavily involved in supplier selection and
production planning
Server Factory
set up primarily to take advantage of government incentives, minimize exchange risk,
avoid tariff barriers, and reduce taxes and logistics costs
contributor factory
plays a greater strategic role by getting involved in product development and
engineering, production planning, critical procurement decisions, and developing
suppliers
Outpost Factory
set up in a location with/ an abundance of advanced suppliers, competitors, research
facilities, and knowledge centers to get access to the most current info on materials,
components, technologies, and products
Lead Factory
source of product and process innovation and competitive advantage for the entire
organization
countries with high tariffs (taxes).....
discourage importing of goods
WTO membership requires...
countries to open up markets and reduce tariffs on imported goods
Foreign Trade Zones (FTZ's)
where materialscan be imported duty-free as inputs to production that are exported
exchange rates
plays important role in costs of production in another country
, WTO Agreement
makes direct reference to sustainable development and the desire to protect and
preserve the environment
Access and Proximity to Markets
-Relocation to China for cheap labor and access to the market.
-In the service industry, proximity to customers is even more critical.
-Convenience is a factor in consumer choice.
Labor Issues Key Factors
-Labor availability, productivity, and skill
-Unemployment and underemployment rates
-Wage rates; turnover rates; labor force competitors
-Employment trends
Access to Suppliers
supplier proximity influences the delivery of materials and effectiveness of the supply
chain
Logistics Issues
Logistics costs, and ease and speed of transportation are important inlocation selection
strategy
Utility Availability and Cost
-Electricity supply has not kept pace with high speed of development.
-In heavy industries — cost and availability of energy are critical.
-China is the world's largest producer and installer of solar power in world.
quality of life issues
-Achieving Educational Excellence
-Growing a Vibrant Economy
-Preserving the Natural Environment
-Promoting Social Well-being and Harmony
-Enjoying Arts, Culture, and Recreation
-Sustaining a Healthy Community
-Maintaining Responsive Government
-Moving Around Efficiently and Safely
-Keeping the Community Safe
