SCM 300 Exam 2 Questions with
Complete Solutions.
Goal of waiting line management - ANS-Everyone pays, balance the cost paid by the
company (money paid to maintain the system) with the cost paid by the customers
(time).
Parts of a waiting line system - ANS-Input Source - people that might want service.
Waiting line - the area in which customers wait for service.
Service facility - the area in which customers receive service.
Managerial Considerations in a waiting line system - ANS-Customers - how many?
When are they arriving?
Waiting lines - what type? how many?
Employees - who? How many? Skill and speed?
Service Facilities - how effective and efficient is the process? Tools?
Queue - ANS-Line
Channel - ANS-line, number of lines available
Phase - ANS-a single step in a process
Infinite Population of Customers - ANS-number of possible customers that may come to
the store is very high
Finite Population of Customers - ANS-number of customers is limited, ex. Bus
Balking - ANS-when a person sees the line but doesn't join thinking it is too long or slow
Reneging - ANS-when a customer joins the line, gets frustrated and leaves the line
Jockeying - ANS-when customers join one line then switch to another line
Arrival Rate - ANS-number of customers arriving per unit of time
Service Rate - ANS-number of customers that will be served per unit of time
Service Utilization Factor - ANS-Percentage of time a service is busy
Vendor - ANS-supplier
, Wholesaler - ANS-purchase goods from manufacturers, typically in large amounts and
at discounted prices
Drop shipper - ANS-company that takes orders, relays the order to a third-party
wholesaler then the wholesaler picks, packs, and ships the ordered items
Franchise - ANS-owns the rights to a company and the name. Ex. McDonald's
Last Mile - ANS-the portion between the final inventory holding facility and the end
customer
Planogram - ANS-map of where every product goes on a retail store shelf
Vendor Manages Inventory - ANS-inventory planning and replenishment system where
the vendor accepts certain responsibilities
Scan-based trading - ANS-the inventory on the retail store shelf is owned by the
supplier
Omni-Channel Retailing - ANS-an organization capable of seamlessly selling to
customers online, via the app, in a store and perhaps via a call center.
Chargebacks - ANS-penalties charged by retail organizations to their suppliers/vendors
for any offense.
Supply Chain integration - ANS-bringing together of supply chain partners
Obstacles to integration - ANS-poor communication, stinginess, lack of trust.
Push system characteristics - ANS-demand is known and expected, materials bought
preemptively. Ex. Detergent, toilet paper
Pull system - ANS-activated by consumer demand, will wait for consumer to place a
specific order.
Cost of miscalculations
Demand high - does the supply chain have capacity? Will lead times increase?
Demand low - did you build too much capacity? Sunk costs.
Postponement - ANS-system that combines both push and pull system. Ex. Chipotle
Supply Chain Trade-offs - ANS-cost, quality, speed, flexibility
Bullwhip effect - ANS-phenomenon where stable demand results in the rapid growth of
the amount of inventory that is carried as one travels upstream in the supply chain.
Complete Solutions.
Goal of waiting line management - ANS-Everyone pays, balance the cost paid by the
company (money paid to maintain the system) with the cost paid by the customers
(time).
Parts of a waiting line system - ANS-Input Source - people that might want service.
Waiting line - the area in which customers wait for service.
Service facility - the area in which customers receive service.
Managerial Considerations in a waiting line system - ANS-Customers - how many?
When are they arriving?
Waiting lines - what type? how many?
Employees - who? How many? Skill and speed?
Service Facilities - how effective and efficient is the process? Tools?
Queue - ANS-Line
Channel - ANS-line, number of lines available
Phase - ANS-a single step in a process
Infinite Population of Customers - ANS-number of possible customers that may come to
the store is very high
Finite Population of Customers - ANS-number of customers is limited, ex. Bus
Balking - ANS-when a person sees the line but doesn't join thinking it is too long or slow
Reneging - ANS-when a customer joins the line, gets frustrated and leaves the line
Jockeying - ANS-when customers join one line then switch to another line
Arrival Rate - ANS-number of customers arriving per unit of time
Service Rate - ANS-number of customers that will be served per unit of time
Service Utilization Factor - ANS-Percentage of time a service is busy
Vendor - ANS-supplier
, Wholesaler - ANS-purchase goods from manufacturers, typically in large amounts and
at discounted prices
Drop shipper - ANS-company that takes orders, relays the order to a third-party
wholesaler then the wholesaler picks, packs, and ships the ordered items
Franchise - ANS-owns the rights to a company and the name. Ex. McDonald's
Last Mile - ANS-the portion between the final inventory holding facility and the end
customer
Planogram - ANS-map of where every product goes on a retail store shelf
Vendor Manages Inventory - ANS-inventory planning and replenishment system where
the vendor accepts certain responsibilities
Scan-based trading - ANS-the inventory on the retail store shelf is owned by the
supplier
Omni-Channel Retailing - ANS-an organization capable of seamlessly selling to
customers online, via the app, in a store and perhaps via a call center.
Chargebacks - ANS-penalties charged by retail organizations to their suppliers/vendors
for any offense.
Supply Chain integration - ANS-bringing together of supply chain partners
Obstacles to integration - ANS-poor communication, stinginess, lack of trust.
Push system characteristics - ANS-demand is known and expected, materials bought
preemptively. Ex. Detergent, toilet paper
Pull system - ANS-activated by consumer demand, will wait for consumer to place a
specific order.
Cost of miscalculations
Demand high - does the supply chain have capacity? Will lead times increase?
Demand low - did you build too much capacity? Sunk costs.
Postponement - ANS-system that combines both push and pull system. Ex. Chipotle
Supply Chain Trade-offs - ANS-cost, quality, speed, flexibility
Bullwhip effect - ANS-phenomenon where stable demand results in the rapid growth of
the amount of inventory that is carried as one travels upstream in the supply chain.
