OM 300 FINAL EXAM CORRECT
100%
Outsourcing - ANSWERTransfers traditional internal activities and resources of a
firm to outside vendors
Utilizes the efficiency that comes with specialization
Firms outsource information technology, accounting, legal, logistics, and production
Components of supply chain network - ANSWERsuppliers, manufacturers/service
providers, distributors, wholesalers/retailers, final customer
Many suppliers - ANSWERcommonly used for commodity products, purchasing is
typically based on price, suppliers compete with one another, supplier is responsible
for technology, expertise, forecasting, cost, quality, and delivery
Few suppliers - ANSWERbuyer forms longer term relationships with fewer suppliers,
create value through economies of scale and learning curve improvements, suppliers
more willing to participate in JIT programs and contribute design and technological
expertise, cost of changing suppliers is huge so risk of being stuck with each other
Vertical Integration - ANSWERdeveloping the ability to produce goods or service
previously purchased
Disaggregation - ANSWERprocess of breaking aggregate plan down into greater
detail; results in master production schedule which is a timetable that specifies what
is to be made and when
Material Requirements Planning (MRP) - ANSWERA dependent demand technique
that uses a bill-of-material, inventory, expected receipts, and master production
schedule to determine material requirements
Benefits of MRP - ANSWERBetter response to customer orders, faster response to
market changes, improved utilization of facilities and labor, reduced inventory levels
Forward integration - ANSWEREX: Apple starting own retail stores
Backward integration - ANSWERpurchasing suppliers; EX: Apple deciding to
manufacture its own semiconductors
Four stages of supplier selection - ANSWERsupplier evaluation, supplier
development, negotiations, and contracting
Four types of inventory - ANSWERraw material inventory, work in process inventory,
Maintenance/repair/operating supply (MRO) inventory, finished-goods inventory
100%
Outsourcing - ANSWERTransfers traditional internal activities and resources of a
firm to outside vendors
Utilizes the efficiency that comes with specialization
Firms outsource information technology, accounting, legal, logistics, and production
Components of supply chain network - ANSWERsuppliers, manufacturers/service
providers, distributors, wholesalers/retailers, final customer
Many suppliers - ANSWERcommonly used for commodity products, purchasing is
typically based on price, suppliers compete with one another, supplier is responsible
for technology, expertise, forecasting, cost, quality, and delivery
Few suppliers - ANSWERbuyer forms longer term relationships with fewer suppliers,
create value through economies of scale and learning curve improvements, suppliers
more willing to participate in JIT programs and contribute design and technological
expertise, cost of changing suppliers is huge so risk of being stuck with each other
Vertical Integration - ANSWERdeveloping the ability to produce goods or service
previously purchased
Disaggregation - ANSWERprocess of breaking aggregate plan down into greater
detail; results in master production schedule which is a timetable that specifies what
is to be made and when
Material Requirements Planning (MRP) - ANSWERA dependent demand technique
that uses a bill-of-material, inventory, expected receipts, and master production
schedule to determine material requirements
Benefits of MRP - ANSWERBetter response to customer orders, faster response to
market changes, improved utilization of facilities and labor, reduced inventory levels
Forward integration - ANSWEREX: Apple starting own retail stores
Backward integration - ANSWERpurchasing suppliers; EX: Apple deciding to
manufacture its own semiconductors
Four stages of supplier selection - ANSWERsupplier evaluation, supplier
development, negotiations, and contracting
Four types of inventory - ANSWERraw material inventory, work in process inventory,
Maintenance/repair/operating supply (MRO) inventory, finished-goods inventory
