SCMN 2150 Test 2 Auburn University
The purchase of merchandise at the optimum total cost, at the right time, in the right
quantity - ANS-Procurement
A company process that continuously re-evaluates and improves upon the companies
procurement process - ANS-Strategic Sourcing
The identification use and management of the resources a company needs to meet its
goals - ANS-Supply management
What is the goal of the procurement process? - ANS-higher quality
lower cost
better service
MRO - ANS-Maintenance Repair Operations
TCO - ANS-Total Cost of Ownership
What are the 5 steps in the procurement cycle? - ANS-1. Identify needs
2. Evaluate suppliers
3. Select supplier
4. Order
5. Evaluate order and supplier
Moving internal activities to someone else - ANS-outsourcing
What are the reasons to choose to buy a product rather than make it? - ANS-Price - It
might be cheaper to just buy it
Capacity - Company might not have the room to make it
Skills - Company lacks internal skill to make the product
Inventory/fixed costs - You don't have to pay fixed manufacturing costs or costs that
come with increased inventory
Core Competencies - it gives the company the chance to focus on what they are
actually good at
What are the reasons to choose to make a product rather than just buying it? -
ANS-Cost - it might be cheaper to make it
, Competition - one step ahead of the competition
Leverage
External skills - there may be a lack of skills outside of the company so the best option
is to make it
Internal skills - if a company is good at making it or has the skill to then it makes sense
What are the risks of outsourcing? - ANS--insufficient supply
-poor quality
-long supply lead time
KPI - ANS-Key Performance Indicators
What are the 3 supplier performance metrics that companies use to score suppliers? -
ANS-Fill Rate
Defective Rate
On Time Delivery
The process by which inputs are processed into outputs - ANS-Production
What are the 3 components of production? - ANS-1. how much output to make
2. Which production process to use
3. How much of each input is required
What is the focus of lean production? - ANS-reduce waste, increase quality, and low
cost
What is the focus of mass customization? - ANS-holding off on making the final product
as long as you can for orders to be placed and customized
What are the key drivers of the production strategy? - ANS-- Product features and
demand
- make vs buy inputs
- product flexibility
- quality and service
- degree of automation
What are the 5 production processes available to companies? - ANS-1. project focus
2. work center
3. cell
4. assembly line
The purchase of merchandise at the optimum total cost, at the right time, in the right
quantity - ANS-Procurement
A company process that continuously re-evaluates and improves upon the companies
procurement process - ANS-Strategic Sourcing
The identification use and management of the resources a company needs to meet its
goals - ANS-Supply management
What is the goal of the procurement process? - ANS-higher quality
lower cost
better service
MRO - ANS-Maintenance Repair Operations
TCO - ANS-Total Cost of Ownership
What are the 5 steps in the procurement cycle? - ANS-1. Identify needs
2. Evaluate suppliers
3. Select supplier
4. Order
5. Evaluate order and supplier
Moving internal activities to someone else - ANS-outsourcing
What are the reasons to choose to buy a product rather than make it? - ANS-Price - It
might be cheaper to just buy it
Capacity - Company might not have the room to make it
Skills - Company lacks internal skill to make the product
Inventory/fixed costs - You don't have to pay fixed manufacturing costs or costs that
come with increased inventory
Core Competencies - it gives the company the chance to focus on what they are
actually good at
What are the reasons to choose to make a product rather than just buying it? -
ANS-Cost - it might be cheaper to make it
, Competition - one step ahead of the competition
Leverage
External skills - there may be a lack of skills outside of the company so the best option
is to make it
Internal skills - if a company is good at making it or has the skill to then it makes sense
What are the risks of outsourcing? - ANS--insufficient supply
-poor quality
-long supply lead time
KPI - ANS-Key Performance Indicators
What are the 3 supplier performance metrics that companies use to score suppliers? -
ANS-Fill Rate
Defective Rate
On Time Delivery
The process by which inputs are processed into outputs - ANS-Production
What are the 3 components of production? - ANS-1. how much output to make
2. Which production process to use
3. How much of each input is required
What is the focus of lean production? - ANS-reduce waste, increase quality, and low
cost
What is the focus of mass customization? - ANS-holding off on making the final product
as long as you can for orders to be placed and customized
What are the key drivers of the production strategy? - ANS-- Product features and
demand
- make vs buy inputs
- product flexibility
- quality and service
- degree of automation
What are the 5 production processes available to companies? - ANS-1. project focus
2. work center
3. cell
4. assembly line
