SCM 300 Final (Exam 1 & 2)
Competitive Priorities - CORRECT ANSWER-Cost, Quality, Time, Flexibility
Productivity - CORRECT ANSWER-(Organizational Perspective) How much stuff
the company made in relation to its starting materials.
Formula: (What did I make; Outputs)/(What was the cost; Inputs)
Value - CORRECT ANSWER-(Customer's Perspective) Customer's assigned
worth to an object given its cost.
Formula: (What the customer gets; quantity, quality, size)/(The price; money,
waiting time)
SCM - CORRECT ANSWER-Coordinating or integrating a number of
product-related activities among supply chain participants to improve operating
efficiencies, quality, and customer service in order to gain a sustainable
competitive advantage for all of the collaborating organizations
Operations Management - CORRECT ANSWER-Design, operation, and
improvement of production systems that efficiently transform inputs (raw
materials/parts/information) into finished goods and services. Responsibilities
include process management, plant management, capacity planning, scheduling
jobs, waiting line management, and process improvement projects.
Logistics - CORRECT ANSWER-The coordinated planning and execution of
product distribution throughout the supply chain, preparation of the packaged
product, transportation, and warehousing. Responsibilities include infrastructure
management, documentation, third party management, and communication.
Procurement - CORRECT ANSWER-The process of obtaining services, supplies,
and equipment in conformation with corporate regulations. Responsibilities
include supplier selection, purchasing negotiations, supplier relationship
management, and materials/inventory management.
Benefits of High & Low Inventory Levels - CORRECT ANSWER-Pros of High:
Customer service levels
, Costs to order inventory (purchasing costs)
Cost to purchase - quantity discounts
Transportation: Ease? Cost?
Cons of High:
Cost to hold inventory
Materials handling - Cost to handle inventory
Shrinkage/Obsolescence
Liquidity - Capital investment options
Safety Stock - CORRECT ANSWER-- Protects against uncertainty demand, lead
time, supply...Not intended to be used. Cushion, Insurance. Need extra stock to
account for deficiencies in forecasting provided by marketing. All safety stock is
waste that could be eliminated if one knew all the information in the supply chain.
Locate on SC: Could be anywhere on the supply chain.
Examples: Anything could theoretically act as safety stock.
Pipeline Inventory - CORRECT ANSWER-Orders that have been placed but not
yet received nor paid for by customer. Inventory "on its way" to the customer.
Does not include safety stock because safety stock is something we have but
don't intend to use. Formula: dL (Periodic demand * Lead Time).
Locate on SC: All throughout.
EOQ. how do you use the graph? - CORRECT ANSWER-the optimal order size
to pay the lowest total cost using the given cost structure and demand forecast.
Intersection of AOC & AHC....gives the lowest total cost
What does it mean if AHC > AOC? Should you increase Q? - CORRECT
ANSWER-Holding more than you are ordering. Decrease Q
What does it mean if AHC < AOC? Should you increase Q? - CORRECT
ANSWER-Holding less than you are ordering. Increase Q
Vertical Integration - CORRECT ANSWER-Acquiring downstream customers and
upstream suppliers; strategy to increase control over SC
Competitive Priorities - CORRECT ANSWER-Cost, Quality, Time, Flexibility
Productivity - CORRECT ANSWER-(Organizational Perspective) How much stuff
the company made in relation to its starting materials.
Formula: (What did I make; Outputs)/(What was the cost; Inputs)
Value - CORRECT ANSWER-(Customer's Perspective) Customer's assigned
worth to an object given its cost.
Formula: (What the customer gets; quantity, quality, size)/(The price; money,
waiting time)
SCM - CORRECT ANSWER-Coordinating or integrating a number of
product-related activities among supply chain participants to improve operating
efficiencies, quality, and customer service in order to gain a sustainable
competitive advantage for all of the collaborating organizations
Operations Management - CORRECT ANSWER-Design, operation, and
improvement of production systems that efficiently transform inputs (raw
materials/parts/information) into finished goods and services. Responsibilities
include process management, plant management, capacity planning, scheduling
jobs, waiting line management, and process improvement projects.
Logistics - CORRECT ANSWER-The coordinated planning and execution of
product distribution throughout the supply chain, preparation of the packaged
product, transportation, and warehousing. Responsibilities include infrastructure
management, documentation, third party management, and communication.
Procurement - CORRECT ANSWER-The process of obtaining services, supplies,
and equipment in conformation with corporate regulations. Responsibilities
include supplier selection, purchasing negotiations, supplier relationship
management, and materials/inventory management.
Benefits of High & Low Inventory Levels - CORRECT ANSWER-Pros of High:
Customer service levels
, Costs to order inventory (purchasing costs)
Cost to purchase - quantity discounts
Transportation: Ease? Cost?
Cons of High:
Cost to hold inventory
Materials handling - Cost to handle inventory
Shrinkage/Obsolescence
Liquidity - Capital investment options
Safety Stock - CORRECT ANSWER-- Protects against uncertainty demand, lead
time, supply...Not intended to be used. Cushion, Insurance. Need extra stock to
account for deficiencies in forecasting provided by marketing. All safety stock is
waste that could be eliminated if one knew all the information in the supply chain.
Locate on SC: Could be anywhere on the supply chain.
Examples: Anything could theoretically act as safety stock.
Pipeline Inventory - CORRECT ANSWER-Orders that have been placed but not
yet received nor paid for by customer. Inventory "on its way" to the customer.
Does not include safety stock because safety stock is something we have but
don't intend to use. Formula: dL (Periodic demand * Lead Time).
Locate on SC: All throughout.
EOQ. how do you use the graph? - CORRECT ANSWER-the optimal order size
to pay the lowest total cost using the given cost structure and demand forecast.
Intersection of AOC & AHC....gives the lowest total cost
What does it mean if AHC > AOC? Should you increase Q? - CORRECT
ANSWER-Holding more than you are ordering. Decrease Q
What does it mean if AHC < AOC? Should you increase Q? - CORRECT
ANSWER-Holding less than you are ordering. Increase Q
Vertical Integration - CORRECT ANSWER-Acquiring downstream customers and
upstream suppliers; strategy to increase control over SC
