SCM 300 Arizona State University - Exam 1
Study Guide
Supply chain management - CORRECT ANSWER-extracting materials from the
ground, selling them to raw material manufacturers, turn raw materials into
materials that are usable by component manufacturers, then final manufacturers
make and sell intermediate components, the final manufacturers assemble
finished products and sell them to wholesalers or distributors, resell them to
retailers who sell to end customers
Thus, the series of companies that eventually make products and services
available to consumers, including all of the functions enabling the production,
delivery, and recycling of materials, components, end products, and services, is
called a supply chain
Primary goals of SCM - CORRECT ANSWER-sustainable long term profits and
maximize ROI
Value - CORRECT ANSWER-customer perspective-what do I get?/what is the
price?
Productivity - CORRECT ANSWER-organizational perspective-outputs/inputs
Shigeo Shingo's-7 Types of Waste - CORRECT ANSWER-1. Defects
2. Overproduction- production used to mask shortcomings
3. Transportation- no added value
4. Motion- movement of employees and machines
5. Waiting- wasted resources during waiting
6. Inventory (not providing a return)- excess inventory is not providing a return
7. Over processing- more work than required is done in creating a service/good
Competitive Priorities - CORRECT ANSWER-cost, quality, speed/time, and
flexibility
,Business models - CORRECT ANSWER-a mechanism by which a business
intends to generate revenue and profits. Summary of how a company plans to
serve its customers at a strategic level
B2C - CORRECT ANSWER-business to consumer- Amazon, Best Buy, Dillards
B2B - CORRECT ANSWER-business to business- DHL, Boeing,
Consulting/marketing agencies
Both B2B and B2C - CORRECT ANSWER-Apple, Dell, Ford, and Verizon
Brick and Mortar- land based commerce only
Internet retailer only- Amazon
Click and Mortar - CORRECT ANSWER-both land based and internet (Best Buy,
Barnes and Noble)
P&G Example - CORRECT ANSWER-3 priorities= reliable service, agile,
demand driven supply, and affordable differentiation
Vertically integrated firm - CORRECT ANSWER-a firm whose business
boundaries include one-time suppliers and/or customers
What is occurring at many of these firms today is an effort to par down the
organization to focus more on core capabilities while trying to create alliances or
strategic partnerships with suppliers, transportation and warehousing companies,
distributors, and other customers who are good at what they do. This team
approach to making and distributing products and services to customers is
becoming the most effective and efficient way for businesses to stay successful
-and is central to the practice of SCM.
Supplier Management - CORRECT ANSWER-this means getting your firm's
suppliers to do what you want, and there are a number of ways to do this. This
involves assessing your suppliers' current capabilities and then figuring out how
to improve them
, Supplier Evaluation - CORRECT ANSWER-determining the capabilities of
suppliers. This occurs both when potential suppliers are being evaluated for a
future purchase and when existing suppliers are periodically evaluated for
performance purposes
Strategic partnerships - CORRECT ANSWER-organizations creating alliances,
one of the foundations of SCM
Reverse logistics activities - CORRECT ANSWER-along the supply chain,
intermediate and end customers may need to return products, obtain warranty
repairs, or may just throw products away or recycle them
Focal firm - CORRECT ANSWER-end product manufacturer, Ex. Coca-Cola,
Boeing, General Motors
1st tier suppliers/customers - CORRECT ANSWER-- First tier supplier supplies a
business directly. (EA Sports distributes Madden to Best Buy; EA is a 1st tier
supplier to Best Buy).
2nd tier suppliers/customers - CORRECT ANSWER-the suppliers' suppliers and
the customers' customers. (Hershey's buys cocoa from an American company
who bought it from a Brazilian company, The Brazilian company is a 2nd tier
supplier to Hershey's).
Grebson Example - CORRECT ANSWER-Grebson is experiencing the bullwhip
effect, meaning there is a problem in safety stock, forecasting, and production
problem. Grebson is not sure on how many units they demand, they ultimately
affects the supply chain in a major way.
Business process re-engineering (BPR) - CORRECT ANSWER-the radical
rethinking and redesigning of business processes to reduce waste and increase
performance, was introduced in the early 1990s and was the result of a growing
interest during this time in the need for cost reductions and a return to an
emphasis on the key competencies
3PLs (third party logistics providers) - CORRECT ANSWER-firms use them to
ensure a continuous, uninterrupted supply of goods
Study Guide
Supply chain management - CORRECT ANSWER-extracting materials from the
ground, selling them to raw material manufacturers, turn raw materials into
materials that are usable by component manufacturers, then final manufacturers
make and sell intermediate components, the final manufacturers assemble
finished products and sell them to wholesalers or distributors, resell them to
retailers who sell to end customers
Thus, the series of companies that eventually make products and services
available to consumers, including all of the functions enabling the production,
delivery, and recycling of materials, components, end products, and services, is
called a supply chain
Primary goals of SCM - CORRECT ANSWER-sustainable long term profits and
maximize ROI
Value - CORRECT ANSWER-customer perspective-what do I get?/what is the
price?
Productivity - CORRECT ANSWER-organizational perspective-outputs/inputs
Shigeo Shingo's-7 Types of Waste - CORRECT ANSWER-1. Defects
2. Overproduction- production used to mask shortcomings
3. Transportation- no added value
4. Motion- movement of employees and machines
5. Waiting- wasted resources during waiting
6. Inventory (not providing a return)- excess inventory is not providing a return
7. Over processing- more work than required is done in creating a service/good
Competitive Priorities - CORRECT ANSWER-cost, quality, speed/time, and
flexibility
,Business models - CORRECT ANSWER-a mechanism by which a business
intends to generate revenue and profits. Summary of how a company plans to
serve its customers at a strategic level
B2C - CORRECT ANSWER-business to consumer- Amazon, Best Buy, Dillards
B2B - CORRECT ANSWER-business to business- DHL, Boeing,
Consulting/marketing agencies
Both B2B and B2C - CORRECT ANSWER-Apple, Dell, Ford, and Verizon
Brick and Mortar- land based commerce only
Internet retailer only- Amazon
Click and Mortar - CORRECT ANSWER-both land based and internet (Best Buy,
Barnes and Noble)
P&G Example - CORRECT ANSWER-3 priorities= reliable service, agile,
demand driven supply, and affordable differentiation
Vertically integrated firm - CORRECT ANSWER-a firm whose business
boundaries include one-time suppliers and/or customers
What is occurring at many of these firms today is an effort to par down the
organization to focus more on core capabilities while trying to create alliances or
strategic partnerships with suppliers, transportation and warehousing companies,
distributors, and other customers who are good at what they do. This team
approach to making and distributing products and services to customers is
becoming the most effective and efficient way for businesses to stay successful
-and is central to the practice of SCM.
Supplier Management - CORRECT ANSWER-this means getting your firm's
suppliers to do what you want, and there are a number of ways to do this. This
involves assessing your suppliers' current capabilities and then figuring out how
to improve them
, Supplier Evaluation - CORRECT ANSWER-determining the capabilities of
suppliers. This occurs both when potential suppliers are being evaluated for a
future purchase and when existing suppliers are periodically evaluated for
performance purposes
Strategic partnerships - CORRECT ANSWER-organizations creating alliances,
one of the foundations of SCM
Reverse logistics activities - CORRECT ANSWER-along the supply chain,
intermediate and end customers may need to return products, obtain warranty
repairs, or may just throw products away or recycle them
Focal firm - CORRECT ANSWER-end product manufacturer, Ex. Coca-Cola,
Boeing, General Motors
1st tier suppliers/customers - CORRECT ANSWER-- First tier supplier supplies a
business directly. (EA Sports distributes Madden to Best Buy; EA is a 1st tier
supplier to Best Buy).
2nd tier suppliers/customers - CORRECT ANSWER-the suppliers' suppliers and
the customers' customers. (Hershey's buys cocoa from an American company
who bought it from a Brazilian company, The Brazilian company is a 2nd tier
supplier to Hershey's).
Grebson Example - CORRECT ANSWER-Grebson is experiencing the bullwhip
effect, meaning there is a problem in safety stock, forecasting, and production
problem. Grebson is not sure on how many units they demand, they ultimately
affects the supply chain in a major way.
Business process re-engineering (BPR) - CORRECT ANSWER-the radical
rethinking and redesigning of business processes to reduce waste and increase
performance, was introduced in the early 1990s and was the result of a growing
interest during this time in the need for cost reductions and a return to an
emphasis on the key competencies
3PLs (third party logistics providers) - CORRECT ANSWER-firms use them to
ensure a continuous, uninterrupted supply of goods
