Supply Chain Management Exam 1 Chapters 1-4 :–
Questions With Complete Solutions
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Terms in this set (100)
Supply Chain Management (SCM) is the design and management of flows of products,
information, and funds throughout the supply chain.
Supply Chain is the network of all entities involved in producing
and delivering a finished product to the final
customer.
This includes sourcing raw materials and parts;
manufacturing, producing, and assembling the
products; storing goods in warehouses; order entry
and tracking; distribution; and delivery to the final
customer.
A typical supply chain may involve -Suppliers
many different trading partners, called -Producers
stages. These stages may be: -Wholesalers/Distributors
-Retailers
-Customers
>Each stage may not be present in a SC
> The number of stages in a SC and its design will
depend on the customer's needs, the roles of stages
involved, and the value each stage provides.
Supply Chain is often called "Value -SC are under increasing financial pressure, and
Network" or "Value Chain" stages that do not add value to the SC are quickly
bypassed or eliminated.
-"Value chain" was introduced by a Harvard
professor, Michael Porter in the 1980's.
,SCM Activities 1. Coordination - coordinate the movement of goods,
services, and funds through the SC
2. Information Sharing - share forecasts, point-of-sale
data, planned promotional campaigns, and inventory
levels
3. Collaboration - jointly plan, operate, and execute
business decisions as one entity
Managing Flows through the SC 1. Flow of Products - from the beginning to the final
(Products, Information, and Funds) customer. Goods also flow back through the chain,
called "reverse logistics"
2. Flow of Information - simplifies SC utilize data from
point-of-sale back to suppliers. Real time info
reduces uncertainty and inventory levels making it
more timely and accurate.
3. Flow of Funds - funds are transferred in both
directions along the SC. "SC compression" is a
shorter order cycle time which means the customers
will receive their orders faster.
The Bullwhip Effect - Fluctuation and distortion of information increases
as it moves up the SC, from retailers, to
manufacturers, to suppliers.
> each stage of the chain carries progressively more
inventory
> the longer the SC, the greater the opportunity for
the BW effect
> sharing point-of-sale info with all members of the
SC can combat the BW effect
Customer Focus The final customer is the driving force of the SC
- products are "pulled" through the SC
, The Service SC - focus more on the interaction between the
customer and provider
- often rely on customers as the supplier of inputs
- tend to be shorter than manufacturing SC
- are often more like hubs than chains
- do not have inventory as a buffer
Boundary-Spanning nature of SCM SCM spans and integrates functions within and
between enterprises of the SC through: INTRA-
Organizational Integration and CROSS-Enterprise
Integration
INTRA-Organizational Integration 1. Marketing - links the organization to its customers
2. Operations - organizes the transformation of raw
materials into finished products and services
3. Sourcing - links the organization to its suppliers
and ensuring an efficient supply of materials
4. Logistics - is responsible for moving and
positioning inventory throughout the SC
> To support SCM, each function must also have a
systems viewpoint. This type of effort requires
company-wide integration that is different than the
traditional "silo" mentality, where each organizational
function operates independently.
> Creating systems thinking can be a big challenge
for many companies
CROSS-Enterprise Integration - Various SC organizations functioning as a single
entity to satisfy the final customer by engaging in
ongoing external efforts with suppliers,
transportation carriers, and distributors.
> The ultimate goal of a SC is to operate as a single
entity
Keys:
1. IT as an enabler
2. Relationship Management
3. Collaborative Planning
4. Sharing risks and rewards
5. Win-win strategy
Questions With Complete Solutions
Save
Terms in this set (100)
Supply Chain Management (SCM) is the design and management of flows of products,
information, and funds throughout the supply chain.
Supply Chain is the network of all entities involved in producing
and delivering a finished product to the final
customer.
This includes sourcing raw materials and parts;
manufacturing, producing, and assembling the
products; storing goods in warehouses; order entry
and tracking; distribution; and delivery to the final
customer.
A typical supply chain may involve -Suppliers
many different trading partners, called -Producers
stages. These stages may be: -Wholesalers/Distributors
-Retailers
-Customers
>Each stage may not be present in a SC
> The number of stages in a SC and its design will
depend on the customer's needs, the roles of stages
involved, and the value each stage provides.
Supply Chain is often called "Value -SC are under increasing financial pressure, and
Network" or "Value Chain" stages that do not add value to the SC are quickly
bypassed or eliminated.
-"Value chain" was introduced by a Harvard
professor, Michael Porter in the 1980's.
,SCM Activities 1. Coordination - coordinate the movement of goods,
services, and funds through the SC
2. Information Sharing - share forecasts, point-of-sale
data, planned promotional campaigns, and inventory
levels
3. Collaboration - jointly plan, operate, and execute
business decisions as one entity
Managing Flows through the SC 1. Flow of Products - from the beginning to the final
(Products, Information, and Funds) customer. Goods also flow back through the chain,
called "reverse logistics"
2. Flow of Information - simplifies SC utilize data from
point-of-sale back to suppliers. Real time info
reduces uncertainty and inventory levels making it
more timely and accurate.
3. Flow of Funds - funds are transferred in both
directions along the SC. "SC compression" is a
shorter order cycle time which means the customers
will receive their orders faster.
The Bullwhip Effect - Fluctuation and distortion of information increases
as it moves up the SC, from retailers, to
manufacturers, to suppliers.
> each stage of the chain carries progressively more
inventory
> the longer the SC, the greater the opportunity for
the BW effect
> sharing point-of-sale info with all members of the
SC can combat the BW effect
Customer Focus The final customer is the driving force of the SC
- products are "pulled" through the SC
, The Service SC - focus more on the interaction between the
customer and provider
- often rely on customers as the supplier of inputs
- tend to be shorter than manufacturing SC
- are often more like hubs than chains
- do not have inventory as a buffer
Boundary-Spanning nature of SCM SCM spans and integrates functions within and
between enterprises of the SC through: INTRA-
Organizational Integration and CROSS-Enterprise
Integration
INTRA-Organizational Integration 1. Marketing - links the organization to its customers
2. Operations - organizes the transformation of raw
materials into finished products and services
3. Sourcing - links the organization to its suppliers
and ensuring an efficient supply of materials
4. Logistics - is responsible for moving and
positioning inventory throughout the SC
> To support SCM, each function must also have a
systems viewpoint. This type of effort requires
company-wide integration that is different than the
traditional "silo" mentality, where each organizational
function operates independently.
> Creating systems thinking can be a big challenge
for many companies
CROSS-Enterprise Integration - Various SC organizations functioning as a single
entity to satisfy the final customer by engaging in
ongoing external efforts with suppliers,
transportation carriers, and distributors.
> The ultimate goal of a SC is to operate as a single
entity
Keys:
1. IT as an enabler
2. Relationship Management
3. Collaborative Planning
4. Sharing risks and rewards
5. Win-win strategy
