Davila SCM 300 Final
1. Competitive Priorities: 1. Cost
2. Quality
3. Speed/Time
4. Flexibility
2. Productivity and Value: Organization vs. Customer
3. What is SCM: Is the oversight of materials, information, and finances as they move in a
process from supplier to manufacturer to wholesaler to retailer to con- sumer.
4. Operations Management: Design, operations, and improvement of product sys- tems that
efficiently transform inputs into finished goods and services which leads to maximizing
productivity.
5. Logistics: Is the COORDINATED Planning and Execution of product distribution, preparation of
packaged product, transport and warehousing.
6. Procurement: The process of obtaining services, supplies, and equipment in conformance
with corporate regulations.
7. Upstream: Stage of the production process involves searching for and extracting raw
materials.
8. Downstream: Stage in the production process involves processing the materials collected
during the upstream stage into a finished product
9. Reverse Logistics: The process of planning, implementing, and controlling the efficient, cost
effective flow of raw materials, in-process inventory, finished goods and related information
from the point of consumption to the point of origin for the purpose of recapturing value or
proper disposal.
10.1st Tier Supplier: Companies direct supplier
11.2nd Tier Supplier: Provide tier 1 with supplies
12.Safety Stock: Insurance inventory
13.Pipeline Inventory: Inventory in transit
14.Vertical Integration: A company taking on additional supply chain responsibili- ties that used
to be done by outside parties
15.Benefits of High Inventory Levels: >>Higher levels of customer service
>>Quantity discounts
>>Fewer orders placed
>>Greater security for demand variability
16.Benefits of Low Inventory Levels: >>Less storage space
>>Lower change of obsolesence
>>Less materials handling requirments
>>More money available for investment opportunities
, Davila SCM 300 Final
17.What is the EOQ?: >>Is the optimal order size.
>>Using it, you will get the lowest total cost for the given cost structure and demand forecast.
18.What does it mean if AHC > AOC? Increase or decrease Q?: Above the EOQ.
19.What does it mean if AHC < AOC? Increase or decrease Q?: Below the EOQ.
20.What should be considered in choosing a supplier?: >>Cost
>>Quality
>>Location
>>Innovation
>>Flexibility
>>Speed ect..
21.Line Flow: >>Low per unit Cost(long-term).
>>Consistent Quality.
>>Fast Production Rates.
>>Minimal Customization Opportunities, Product Lines very consistent.
>>Make-to-Stock.
>>Start -up costs may be very high.
22.Flexible Flow: >>High per unit cost.
>>High performance and design.
>>Slow production rates.
>>Customization opportunities likely, difference between products may be great.
>>Make-to-order.
>>Start-up costs relatively low.
23.Hybrid Systems: >>Assemble-to-order.
>>Start-up costs are moderate.
>>Labor, machines, tools= mix.
>>Lead times dictated by both processing rates and delivery.
>>Changeovers= depends
>>Inventory= depends
24.Cycle Time: Maximum time allowed for work on one unit at each station - time it takes for
one unit to come off assembly line.
25.Bottleneck: One station taking more time required than the rest of the stations and creating
a back up in unfinished goods.
26.Established Channels of Distribution: Chain of organizations help bring prod- ucts to user
27.Established Supplier Base: An established group of suppliers from which a company
makes most of its purchases.
28.Describe: Major Cargo Classifications. Examples: >>Bulk Cargo, which is free flowing cargo
stored loose and is usually loaded by shovel. (EX: coal, rice)
, Davila SCM 300 Final
>>Break-Bulk Cargo which is general or packaged cargo often containerized.
>>Neo-bulk Cargo, which is cargo with characteristics of both bulk and break-bulk cargo. (EX:
cars, logs)
29.Plannogram: Map of where every product goes on a shelf in the store.
30.Dunnage: Stuffing placed to fill space within a package EX:
packing peanuts
31.TL: Full Truckload
32.LTL: Less than a Truckload
33.TEU: Twenty foot equivalent unity
34.Reefer: Controlled atmosphere container
35.Intermodal: One container entire trip
36.Pros of 4 Modes of Transportation: Truck: reliable/ cheap Airplane:
fastest
Railroad: cheaper than trucks
Vessels: ship a lot of product
37.Cons of 4 Modes of Transportation: Truck: traffic/weather Airplane:
expensive
Railroad: cargo damaged easily
Vessels: slowest
38.Warehouse: Provides storage
39.Distributing Center: Facilitates movement
40.Crossdocking: Fast mixing centers, more inventory quickly, zero inventory in distribution
center.
41.Queuing System - Goals and Trade-offs: >>Find the proper balance between long
lines/unhappy customers and idle staff/high cost.
>>Companies that have shorter lines are perceived to have better service, but shorter
lines typically means employees with less work.
42.Balking: When people fail to enter the line because of the number of people already
present.
43.Reneging: When people enter the line but then leave because of the wait time.
44.Last Mile: Portion of the supply chain between the final inventory holding facility and the
end consumer.
45.Vendor Managed Inventory: Inventory planning and replenishment system where
supplier(vendor) accepts negotiated responsibilities that typically include monitoring and
restocking.
>>Value to retailer: fewer responsibilities, decrease cost.
>>Value to vendor: better understanding of demand rates, fewer retailer errors,
responsive.
1. Competitive Priorities: 1. Cost
2. Quality
3. Speed/Time
4. Flexibility
2. Productivity and Value: Organization vs. Customer
3. What is SCM: Is the oversight of materials, information, and finances as they move in a
process from supplier to manufacturer to wholesaler to retailer to con- sumer.
4. Operations Management: Design, operations, and improvement of product sys- tems that
efficiently transform inputs into finished goods and services which leads to maximizing
productivity.
5. Logistics: Is the COORDINATED Planning and Execution of product distribution, preparation of
packaged product, transport and warehousing.
6. Procurement: The process of obtaining services, supplies, and equipment in conformance
with corporate regulations.
7. Upstream: Stage of the production process involves searching for and extracting raw
materials.
8. Downstream: Stage in the production process involves processing the materials collected
during the upstream stage into a finished product
9. Reverse Logistics: The process of planning, implementing, and controlling the efficient, cost
effective flow of raw materials, in-process inventory, finished goods and related information
from the point of consumption to the point of origin for the purpose of recapturing value or
proper disposal.
10.1st Tier Supplier: Companies direct supplier
11.2nd Tier Supplier: Provide tier 1 with supplies
12.Safety Stock: Insurance inventory
13.Pipeline Inventory: Inventory in transit
14.Vertical Integration: A company taking on additional supply chain responsibili- ties that used
to be done by outside parties
15.Benefits of High Inventory Levels: >>Higher levels of customer service
>>Quantity discounts
>>Fewer orders placed
>>Greater security for demand variability
16.Benefits of Low Inventory Levels: >>Less storage space
>>Lower change of obsolesence
>>Less materials handling requirments
>>More money available for investment opportunities
, Davila SCM 300 Final
17.What is the EOQ?: >>Is the optimal order size.
>>Using it, you will get the lowest total cost for the given cost structure and demand forecast.
18.What does it mean if AHC > AOC? Increase or decrease Q?: Above the EOQ.
19.What does it mean if AHC < AOC? Increase or decrease Q?: Below the EOQ.
20.What should be considered in choosing a supplier?: >>Cost
>>Quality
>>Location
>>Innovation
>>Flexibility
>>Speed ect..
21.Line Flow: >>Low per unit Cost(long-term).
>>Consistent Quality.
>>Fast Production Rates.
>>Minimal Customization Opportunities, Product Lines very consistent.
>>Make-to-Stock.
>>Start -up costs may be very high.
22.Flexible Flow: >>High per unit cost.
>>High performance and design.
>>Slow production rates.
>>Customization opportunities likely, difference between products may be great.
>>Make-to-order.
>>Start-up costs relatively low.
23.Hybrid Systems: >>Assemble-to-order.
>>Start-up costs are moderate.
>>Labor, machines, tools= mix.
>>Lead times dictated by both processing rates and delivery.
>>Changeovers= depends
>>Inventory= depends
24.Cycle Time: Maximum time allowed for work on one unit at each station - time it takes for
one unit to come off assembly line.
25.Bottleneck: One station taking more time required than the rest of the stations and creating
a back up in unfinished goods.
26.Established Channels of Distribution: Chain of organizations help bring prod- ucts to user
27.Established Supplier Base: An established group of suppliers from which a company
makes most of its purchases.
28.Describe: Major Cargo Classifications. Examples: >>Bulk Cargo, which is free flowing cargo
stored loose and is usually loaded by shovel. (EX: coal, rice)
, Davila SCM 300 Final
>>Break-Bulk Cargo which is general or packaged cargo often containerized.
>>Neo-bulk Cargo, which is cargo with characteristics of both bulk and break-bulk cargo. (EX:
cars, logs)
29.Plannogram: Map of where every product goes on a shelf in the store.
30.Dunnage: Stuffing placed to fill space within a package EX:
packing peanuts
31.TL: Full Truckload
32.LTL: Less than a Truckload
33.TEU: Twenty foot equivalent unity
34.Reefer: Controlled atmosphere container
35.Intermodal: One container entire trip
36.Pros of 4 Modes of Transportation: Truck: reliable/ cheap Airplane:
fastest
Railroad: cheaper than trucks
Vessels: ship a lot of product
37.Cons of 4 Modes of Transportation: Truck: traffic/weather Airplane:
expensive
Railroad: cargo damaged easily
Vessels: slowest
38.Warehouse: Provides storage
39.Distributing Center: Facilitates movement
40.Crossdocking: Fast mixing centers, more inventory quickly, zero inventory in distribution
center.
41.Queuing System - Goals and Trade-offs: >>Find the proper balance between long
lines/unhappy customers and idle staff/high cost.
>>Companies that have shorter lines are perceived to have better service, but shorter
lines typically means employees with less work.
42.Balking: When people fail to enter the line because of the number of people already
present.
43.Reneging: When people enter the line but then leave because of the wait time.
44.Last Mile: Portion of the supply chain between the final inventory holding facility and the
end consumer.
45.Vendor Managed Inventory: Inventory planning and replenishment system where
supplier(vendor) accepts negotiated responsibilities that typically include monitoring and
restocking.
>>Value to retailer: fewer responsibilities, decrease cost.
>>Value to vendor: better understanding of demand rates, fewer retailer errors,
responsive.
