SCM 300 EXAM 3 DAVILLA
QUESTIONS & ANSWERS(RATED A+)
Competitive priorities - ANSWER1. cost
2. quality
3. speed/time
4. flexibility
Value - ANSWERwhat i get/price
Productivity - ANSWERwhat i make/cost
SCM key components - ANSWER1. Procurement
2. Operations
3. Logistics
Procurement - ANSWERBuy it: process of obtaining services, supplies, and equipment
in conformance with corporate regulations
Operations - ANSWERMake it: makes business processes effective and efficient. They
help the organization create high quality products/ services using the fewest resources
Logistics - ANSWERMove it: developing the transportation itinerary and finding reliable
transportation and storage partners, to be able to navigate the flow of materials to the
final destination
Reverse logistics - ANSWERreuse of production and materials
1st tier suppliers - ANSWERa company's direct supplier. A firm that directly provides
goods and/ or services to a company
2nd tier suppliers - ANSWERa firm provides goods and/ or services to a company's first-
tier supplier
Downstream - ANSWERdirection in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - ANSWERdirection from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Safety stock - ANSWERprotects against uncertainty in demand, lead time, supply
not intended to be used. cushion, insurance, etc
,Pipeline inventory - ANSWEROrders that have been placed but not yet received nor
paid for by customer
Inventory "on its way" to the customer
Vertical integration - ANSWERcompany taking on additional supply classes (Forward
and backward)
Order less - ANSWERif holding cost too high
Order more - ANSWERIf holding cost too low
Low inventory pros - ANSWERless storage space required (lowering holding cost),
lower chance of inv shrinkage, less materials handling, less money invested in inventory
*Cons for High Inventory
High inventory pros - ANSWERhigher levels of customer service (having inventory
addresses immediate demand), quantity discounts possible, fewer orders will be placed,
greater security against unexpected demand variability
*Cons for Low Inventory
order cost < Carrying cost - ANSWERwhen to use eoq
Supplier considerations - ANSWERconsumer needs, cost quality speed & flex,
technological capability, location, information technology system, ability to innovate,
capacity potential, 2nd & 3rd tier suppliers, reliability, and service
holding cost = ordering cost - ANSWEREOQ formula
Bottleneck - ANSWERslowest or weakest workstation in assembly line
Line flow strategy - ANSWER-make items fast and make it over and over. everything
goes down a line
Demand: Standard Items, High Volumes, Static Industry
Layout: Product Focused/Line Flow Layouts
Manufacturing system: Assembly Lines, Continuous Flow Systems
Make-to-stock systems
Flexible flow strategy - ANSWERevery item made is different, work can go in any
direction
Demand: Customized Items, Low Volumes, Dynamic Industry
Layout: Process Focused/Flexible Flow Layouts
Manufacturing system: Job Shops
Make-to-order systems
, Hybrid strategy - ANSWERevery item is the same but one aspect is different (ie car
color)
Demand: Moderation (Customization, Changes, Industry)
Layout: Hybrid Layouts
Manufacturing system: Group Technology (Cellular) Layout
Possibly an Assemble-to-order system
Cycle time - ANSWERDefinition: maximum time allowed for work on one unit at each
station
Total task time - ANSWERDefinittion: Add ALL the work element times together
Total amount of work time that went into one end Item
Bulk cargo - ANSWERanything that you shovel, pump, bucket. Stuff that is loose, stuff
that is free flowing
Breakbulk cargo - ANSWERputting item into packages and smaller containers or shrink
wrapped
Neobulk cargo - ANSWERcan't shrink wrap, and cant shovel, pump etc (aka a cow,
logs, steel)
Multimodal - ANSWERuse of more than one mode of transport during a single shipment
Intermodal - ANSWERone container used during shipment, do not need to remove the
item for the container, only the container is moved
Planograms - ANSWERput items in certain spots at the store to use all the space
available on the shelf. And which items go on the top, middle and bottom level.
Everything fits perfectly on the shelf
workers use price tags on shelves to use as a marker for how many of that item they put
on shelf
Dunnage - ANSWERused to fill the empty space inside boxes, tubes, etc
TL and Cl - ANSWERFull Truckload
Full Container Load
LTL and LCL - ANSWERLess than a Truck Load
Less than a Container Load
TEU - ANSWERtwenty-foot equivalent unit
three scm flows - ANSWERMoney, materials, information
Balking - ANSWERLeaving before you even get in line because of the length
QUESTIONS & ANSWERS(RATED A+)
Competitive priorities - ANSWER1. cost
2. quality
3. speed/time
4. flexibility
Value - ANSWERwhat i get/price
Productivity - ANSWERwhat i make/cost
SCM key components - ANSWER1. Procurement
2. Operations
3. Logistics
Procurement - ANSWERBuy it: process of obtaining services, supplies, and equipment
in conformance with corporate regulations
Operations - ANSWERMake it: makes business processes effective and efficient. They
help the organization create high quality products/ services using the fewest resources
Logistics - ANSWERMove it: developing the transportation itinerary and finding reliable
transportation and storage partners, to be able to navigate the flow of materials to the
final destination
Reverse logistics - ANSWERreuse of production and materials
1st tier suppliers - ANSWERa company's direct supplier. A firm that directly provides
goods and/ or services to a company
2nd tier suppliers - ANSWERa firm provides goods and/ or services to a company's first-
tier supplier
Downstream - ANSWERdirection in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - ANSWERdirection from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Safety stock - ANSWERprotects against uncertainty in demand, lead time, supply
not intended to be used. cushion, insurance, etc
,Pipeline inventory - ANSWEROrders that have been placed but not yet received nor
paid for by customer
Inventory "on its way" to the customer
Vertical integration - ANSWERcompany taking on additional supply classes (Forward
and backward)
Order less - ANSWERif holding cost too high
Order more - ANSWERIf holding cost too low
Low inventory pros - ANSWERless storage space required (lowering holding cost),
lower chance of inv shrinkage, less materials handling, less money invested in inventory
*Cons for High Inventory
High inventory pros - ANSWERhigher levels of customer service (having inventory
addresses immediate demand), quantity discounts possible, fewer orders will be placed,
greater security against unexpected demand variability
*Cons for Low Inventory
order cost < Carrying cost - ANSWERwhen to use eoq
Supplier considerations - ANSWERconsumer needs, cost quality speed & flex,
technological capability, location, information technology system, ability to innovate,
capacity potential, 2nd & 3rd tier suppliers, reliability, and service
holding cost = ordering cost - ANSWEREOQ formula
Bottleneck - ANSWERslowest or weakest workstation in assembly line
Line flow strategy - ANSWER-make items fast and make it over and over. everything
goes down a line
Demand: Standard Items, High Volumes, Static Industry
Layout: Product Focused/Line Flow Layouts
Manufacturing system: Assembly Lines, Continuous Flow Systems
Make-to-stock systems
Flexible flow strategy - ANSWERevery item made is different, work can go in any
direction
Demand: Customized Items, Low Volumes, Dynamic Industry
Layout: Process Focused/Flexible Flow Layouts
Manufacturing system: Job Shops
Make-to-order systems
, Hybrid strategy - ANSWERevery item is the same but one aspect is different (ie car
color)
Demand: Moderation (Customization, Changes, Industry)
Layout: Hybrid Layouts
Manufacturing system: Group Technology (Cellular) Layout
Possibly an Assemble-to-order system
Cycle time - ANSWERDefinition: maximum time allowed for work on one unit at each
station
Total task time - ANSWERDefinittion: Add ALL the work element times together
Total amount of work time that went into one end Item
Bulk cargo - ANSWERanything that you shovel, pump, bucket. Stuff that is loose, stuff
that is free flowing
Breakbulk cargo - ANSWERputting item into packages and smaller containers or shrink
wrapped
Neobulk cargo - ANSWERcan't shrink wrap, and cant shovel, pump etc (aka a cow,
logs, steel)
Multimodal - ANSWERuse of more than one mode of transport during a single shipment
Intermodal - ANSWERone container used during shipment, do not need to remove the
item for the container, only the container is moved
Planograms - ANSWERput items in certain spots at the store to use all the space
available on the shelf. And which items go on the top, middle and bottom level.
Everything fits perfectly on the shelf
workers use price tags on shelves to use as a marker for how many of that item they put
on shelf
Dunnage - ANSWERused to fill the empty space inside boxes, tubes, etc
TL and Cl - ANSWERFull Truckload
Full Container Load
LTL and LCL - ANSWERLess than a Truck Load
Less than a Container Load
TEU - ANSWERtwenty-foot equivalent unit
three scm flows - ANSWERMoney, materials, information
Balking - ANSWERLeaving before you even get in line because of the length
