SCM 301 IOWA STATE UNIVERSITY EXAM 1 QUESTIONS
AND ANSWERS
Supply Chain - CORRECT ANSWER✅✅consists of the flow of products and services from:
- Raw materials manufacturers
- Component and intermediate manufacturers - Final product manufacturers
- Wholesalers and distributors and
- Retailers
Connected by transportation and storage activities, and integrated through information, planning, and
integration activities
Upstream Supply Chain beginning at the Focal firm - CORRECT ANSWER✅✅- Set of firms that supply the
raw materials (2nd tier), intermediate components manufacturers (1st tier).
Downstream Supply Chain beginning at the Focal firm - CORRECT ANSWER✅✅- The portion of the
supply chain from the production facility to the end-customer. Wholesalers (1st tier), Retailers (2nd
tier), and the final customers.
Old Supply Chains - CORRECT ANSWER✅✅- wanted to own all components of their Supply Chain
New Supply Chains - CORRECT ANSWER✅✅- diversify owners throughout the supply chain
In order for Supply Chains to be successful they must share information like: - CORRECT ANSWER✅✅-
Product specifications
- Production plans
- Production changes
- New marketing strategies
- New technologies employed
- Purchasing plans
,- Delivery dates
Firms using Supply Chain Management
(integration) - CORRECT ANSWER✅✅1) Start with key suppliers
2) Move on to other suppliers, customers, and shippers
3) Integrate second tier suppliers and customers
Second tier Suppliers - CORRECT ANSWER✅✅Supplier of the Supplier
Reducing the Bullwhip Effect will help ___ - CORRECT ANSWER✅✅- help improve cost savings and
better coordination of resources
Bullwhip Effect is reduced by - CORRECT ANSWER✅✅- Collaborative planning, forecasting, and
replenishment activities.
- Which lead to better customer service, lower inventory costs, improved quality, reduced cycle time,
better production methods, and more
Bullwhip Effect - CORRECT ANSWER✅✅- Small changes in customer demand ripple through to create
larger and larger changes as orders move through the supply chain
Bullwhip Effect
Cause: Production schedules based on forecasts of wholesaler demand versus what consumer demand
is - CORRECT ANSWER✅✅Solution:
- Make actual demand data available to suppliers
- Vendor-managed inventory (P&G does for Walmart)
- Reduce the length of the Supply chain
- Reduce the lead times from order to delivery
Bullwhip Effect
Cause: Price Fluctuations - CORRECT ANSWER✅✅Solution:
, - Eliminate price discounting, adopt Everyday low pricing (EDLP)
Bullwhip Effect
Cause: Periodic order policies at the wholesaler and manufacture levels - CORRECT
ANSWER✅✅Solution:
- use frequent and smaller order sizes
Bullwhip Effect
Cause: Rationing/ Shortage gaming... trade deals offered by manufacturers to wholesalers - CORRECT
ANSWER✅✅Solution:
- allocate short supplies based on the demand histories of their customers
1950s-1960s - CORRECT ANSWER✅✅Mass Production to reduce prices
1960s-1970s - CORRECT ANSWER✅✅Introduction of new computer technologies lead to development
of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate
inventory management and improve internal communication
1980s & 1990s - CORRECT ANSWER✅✅Intense global competition led U.S. manufacturers to adopt:
- Supply Chain Management
- Just-In-Time Inventory (JIT)
- Total Quality Management (TQM)
- Business Process Reengineering (BPR) practices
Business Process Reengineering (BPR) - CORRECT ANSWER✅✅A radical redesign of a business process
that improves its efficiency and effectiveness, often by beginning with a "clean sheet" (from scratch).
Customer Relationship Management (CRM) - CORRECT ANSWER✅✅Delivering superior customer value
and satisfaction to build and maintain profitable customer relationships
AND ANSWERS
Supply Chain - CORRECT ANSWER✅✅consists of the flow of products and services from:
- Raw materials manufacturers
- Component and intermediate manufacturers - Final product manufacturers
- Wholesalers and distributors and
- Retailers
Connected by transportation and storage activities, and integrated through information, planning, and
integration activities
Upstream Supply Chain beginning at the Focal firm - CORRECT ANSWER✅✅- Set of firms that supply the
raw materials (2nd tier), intermediate components manufacturers (1st tier).
Downstream Supply Chain beginning at the Focal firm - CORRECT ANSWER✅✅- The portion of the
supply chain from the production facility to the end-customer. Wholesalers (1st tier), Retailers (2nd
tier), and the final customers.
Old Supply Chains - CORRECT ANSWER✅✅- wanted to own all components of their Supply Chain
New Supply Chains - CORRECT ANSWER✅✅- diversify owners throughout the supply chain
In order for Supply Chains to be successful they must share information like: - CORRECT ANSWER✅✅-
Product specifications
- Production plans
- Production changes
- New marketing strategies
- New technologies employed
- Purchasing plans
,- Delivery dates
Firms using Supply Chain Management
(integration) - CORRECT ANSWER✅✅1) Start with key suppliers
2) Move on to other suppliers, customers, and shippers
3) Integrate second tier suppliers and customers
Second tier Suppliers - CORRECT ANSWER✅✅Supplier of the Supplier
Reducing the Bullwhip Effect will help ___ - CORRECT ANSWER✅✅- help improve cost savings and
better coordination of resources
Bullwhip Effect is reduced by - CORRECT ANSWER✅✅- Collaborative planning, forecasting, and
replenishment activities.
- Which lead to better customer service, lower inventory costs, improved quality, reduced cycle time,
better production methods, and more
Bullwhip Effect - CORRECT ANSWER✅✅- Small changes in customer demand ripple through to create
larger and larger changes as orders move through the supply chain
Bullwhip Effect
Cause: Production schedules based on forecasts of wholesaler demand versus what consumer demand
is - CORRECT ANSWER✅✅Solution:
- Make actual demand data available to suppliers
- Vendor-managed inventory (P&G does for Walmart)
- Reduce the length of the Supply chain
- Reduce the lead times from order to delivery
Bullwhip Effect
Cause: Price Fluctuations - CORRECT ANSWER✅✅Solution:
, - Eliminate price discounting, adopt Everyday low pricing (EDLP)
Bullwhip Effect
Cause: Periodic order policies at the wholesaler and manufacture levels - CORRECT
ANSWER✅✅Solution:
- use frequent and smaller order sizes
Bullwhip Effect
Cause: Rationing/ Shortage gaming... trade deals offered by manufacturers to wholesalers - CORRECT
ANSWER✅✅Solution:
- allocate short supplies based on the demand histories of their customers
1950s-1960s - CORRECT ANSWER✅✅Mass Production to reduce prices
1960s-1970s - CORRECT ANSWER✅✅Introduction of new computer technologies lead to development
of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate
inventory management and improve internal communication
1980s & 1990s - CORRECT ANSWER✅✅Intense global competition led U.S. manufacturers to adopt:
- Supply Chain Management
- Just-In-Time Inventory (JIT)
- Total Quality Management (TQM)
- Business Process Reengineering (BPR) practices
Business Process Reengineering (BPR) - CORRECT ANSWER✅✅A radical redesign of a business process
that improves its efficiency and effectiveness, often by beginning with a "clean sheet" (from scratch).
Customer Relationship Management (CRM) - CORRECT ANSWER✅✅Delivering superior customer value
and satisfaction to build and maintain profitable customer relationships
