SCM 300 Davilla Exam 2 ASU
4 Bullwhip effect causes - CORRECT ANSWER--order batching (placing large
infrequent orders from suppliers)
-forward buying (result of suppliers offering sales)
-rationing
-shortage gaming
Shortage Gaming - CORRECT ANSWER--companies order extra to compensate
for perceived need (they expect not to get all that they order)
- they cancel extra need leaving extra supply and no demand
( need to view supply history to avoid this)
Rationing - CORRECT ANSWER-- rationing supply when they can't supply the
full amount and only sending some, causes Shortage gaming
Why go global - CORRECT ANSWER-- Increase revenues globally
- Decrease costs globally
CPFR - CORRECT ANSWER--collaborating, planning, forecasting, rescheduling
-A formalized effort by supply chain partners to share data and collectively
develop forecasts in an effort to reduce supply chain costs through better
planning.
bullwhip effect - CORRECT ANSWER-The bullwhip effect is a supply chain
phenomenon where fairly stable demand results in a proliferation in the amount
of inventory that is carried as one travels upstream in the supply chain.
retail store needs to worry about customer inventory
distributor - has to worry about customer and retial store
and so on... amplification of inventory from one supply chain to the next
Line waiting stakeholders - CORRECT ANSWER-Customers
,Corporate - owners, managers, employees
Line waiting stakeholder costs - CORRECT ANSWER-time and money (your
time, your employees time)
Electronic Manufacturing Services (EMS) - CORRECT ANSWER-- One
manufacturer that makes a ton of electronics
- you don't have to buy most of the parts yourself
- You don't have to build the infrastructure
Benefits:
-Fast start
-strong start
-low cost
-flexible volume amounts
Balking - CORRECT ANSWER-customer wants what you have but they get
scared away by the line
Reneging - CORRECT ANSWER-get in line, then decided the line is too long or
get frustrated, get out of line
Psychological Variables of lines - CORRECT ANSWER-- free stuff
- idle employees
λ - CORRECT ANSWER-Mean arrival rate
µ - CORRECT ANSWER-Mean service rate
λ/µ = p - CORRECT ANSWER-Service utilization factor (percentage of time
worker is busy)
VMI (Vendor Managed Inventory) - CORRECT ANSWER--[vendor takes care of
motioning and restocking]
- Inventory planning and replenishment system where supplier (vendor) accepts
negotiated
responsibilities that typically include monitoring and restocking.
, VMI Issues - CORRECT ANSWER-Goal Alignment - Vendor, Retailer, Customer
Everything must be defined and discussed prior to arrangement
Process Related - Different ways of getting things done
Schedule Related - When should things get done?
Performance and Quality Related - Metrics, Motivation, Discipline, Reliability,
Consistency
People Related - Everyone must BUY-IN, Culture clashes, Equity issues, attire,
professionalism
IT compatibility, Sharing Concerns
Scan-based trading - CORRECT ANSWER--suppliers own the stuff until it is
sold. If and when it is sold they pay something to the store.
-Distributor sends product to your store but only gets paid when the product is
sold. Doesn't count inventory.
Chargebacks - CORRECT ANSWER-- Charge vendors for making supply chain
mistakes
- Penalties charged by retail organizations to their suppliers/vendors for any
number of minor and major supply chain offenses.
- encourages better SCs
Last Mile - CORRECT ANSWER-- portion of the supply chain between the final
holding facility and the end consumer
Rationalized Retailing - CORRECT ANSWER-- Like Zara
- have all stores SCm managed the same way
4 retailing options - CORRECT ANSWER--Brick and Mortar (physical store)
4 Bullwhip effect causes - CORRECT ANSWER--order batching (placing large
infrequent orders from suppliers)
-forward buying (result of suppliers offering sales)
-rationing
-shortage gaming
Shortage Gaming - CORRECT ANSWER--companies order extra to compensate
for perceived need (they expect not to get all that they order)
- they cancel extra need leaving extra supply and no demand
( need to view supply history to avoid this)
Rationing - CORRECT ANSWER-- rationing supply when they can't supply the
full amount and only sending some, causes Shortage gaming
Why go global - CORRECT ANSWER-- Increase revenues globally
- Decrease costs globally
CPFR - CORRECT ANSWER--collaborating, planning, forecasting, rescheduling
-A formalized effort by supply chain partners to share data and collectively
develop forecasts in an effort to reduce supply chain costs through better
planning.
bullwhip effect - CORRECT ANSWER-The bullwhip effect is a supply chain
phenomenon where fairly stable demand results in a proliferation in the amount
of inventory that is carried as one travels upstream in the supply chain.
retail store needs to worry about customer inventory
distributor - has to worry about customer and retial store
and so on... amplification of inventory from one supply chain to the next
Line waiting stakeholders - CORRECT ANSWER-Customers
,Corporate - owners, managers, employees
Line waiting stakeholder costs - CORRECT ANSWER-time and money (your
time, your employees time)
Electronic Manufacturing Services (EMS) - CORRECT ANSWER-- One
manufacturer that makes a ton of electronics
- you don't have to buy most of the parts yourself
- You don't have to build the infrastructure
Benefits:
-Fast start
-strong start
-low cost
-flexible volume amounts
Balking - CORRECT ANSWER-customer wants what you have but they get
scared away by the line
Reneging - CORRECT ANSWER-get in line, then decided the line is too long or
get frustrated, get out of line
Psychological Variables of lines - CORRECT ANSWER-- free stuff
- idle employees
λ - CORRECT ANSWER-Mean arrival rate
µ - CORRECT ANSWER-Mean service rate
λ/µ = p - CORRECT ANSWER-Service utilization factor (percentage of time
worker is busy)
VMI (Vendor Managed Inventory) - CORRECT ANSWER--[vendor takes care of
motioning and restocking]
- Inventory planning and replenishment system where supplier (vendor) accepts
negotiated
responsibilities that typically include monitoring and restocking.
, VMI Issues - CORRECT ANSWER-Goal Alignment - Vendor, Retailer, Customer
Everything must be defined and discussed prior to arrangement
Process Related - Different ways of getting things done
Schedule Related - When should things get done?
Performance and Quality Related - Metrics, Motivation, Discipline, Reliability,
Consistency
People Related - Everyone must BUY-IN, Culture clashes, Equity issues, attire,
professionalism
IT compatibility, Sharing Concerns
Scan-based trading - CORRECT ANSWER--suppliers own the stuff until it is
sold. If and when it is sold they pay something to the store.
-Distributor sends product to your store but only gets paid when the product is
sold. Doesn't count inventory.
Chargebacks - CORRECT ANSWER-- Charge vendors for making supply chain
mistakes
- Penalties charged by retail organizations to their suppliers/vendors for any
number of minor and major supply chain offenses.
- encourages better SCs
Last Mile - CORRECT ANSWER-- portion of the supply chain between the final
holding facility and the end consumer
Rationalized Retailing - CORRECT ANSWER-- Like Zara
- have all stores SCm managed the same way
4 retailing options - CORRECT ANSWER--Brick and Mortar (physical store)
