OM 300 - Exam 3 Northam
University of Alabama Questions
and Answers
What decisions affect supply chain management? - Answer-Primary supplier selection
criteria, supply chain inventory, distribution network, and product design characteristics
6 Sourcing Strategies: - Answer-1. Many suppliers
2. Few suppliers
3. Vertical integration
4. Joint ventures
5. Keiretsu networks
6. Virtual companies
Many suppliers, sourcing strategy 1, is commonly used for _____ _____, purchasing is
typically based on _______, and suppliers ___________ - Answer-commonly used for
*commodity products*
purchasing is typically *based on price*
suppliers *compete with one another and are responsible for technology, expertise,
forecasting, cost, quality, and delivery*
Few suppliers, sourcing strategy 2, creates ________ through economies of scale and
learning curve improvements, buyer forms ______ _______ relationships w/ fewer
suppliers, suppliers are more willing to participate in _______ _______, cost of ______
_______ is ______, and _______ and other _______ may be at risk - Answer-creates
*value* through economies of scale and learning curve improvements
buyer forms *longer term* relationships with fewer suppliers
suppliers are more willing to participate in *JIT Programs*
cost of *changing suppliers is huge*
*trade secrets* and *other alliances* may be at risk
Vertical Integration, sourcing strategy 3, is integration either _______, towards the
customer, or _______ towards the supplier(s), develops the ability to produce goods or
, services ______ _____, can improve ____________, and is ______ in industries with
_______ ______ _______. - Answer-integration either *forward* towards the customer
*backwards* towards the supplier(s)
develops the ability to produce goods or services *previously purchased*
can improve *cost, quality, delivery, and inventory but requires capital, managerial skills,
and demand*
is *risky* in industries with *rapid technological change*
Joint Ventures, sourcing strategy number 4, is formal collaboration that _____, ______,
and ______. - Answer-*Enhances skills, secures supply, and reduces costs*
Joint ventures runs the risk of: - Answer-diluting the brand of conceding competitive
advantage
Keiretsu Networks, Sourcing strategy number 5, is a middle ground between _______
and _______, suppler becomes part of company _______, provides _______ _______
for suppliers through ________ or ________, expects _______ ________, ______
______, and _______, may extend to several levels of ______ ______, and are similar
to Chaebols but more are family-friendly. - Answer-is a middle ground between *few
suppliers and vertical integration*
supplier becomes part of company *coalition*
provides *financial support* for suppliers through *ownership or loans*
expects *long-term relationships, technical expertise, and stable deliveries*
may extend to several levels of *supply chain*
Virtual Companies, sourcing strategy number 6, rely on a variety of supplier
relationships to provide ____ _____ _____, allow creation of ______ ______ to meet
______ ______ ______, may have _____ or _______ ________, and are exceptionally
_____, ____ _______ ________, ________, and _______. - Answer-rely on a variety of
supplier relationships to provide *services on demand*
allow creation of *unique enterprises* to meet changing *market demands*
may have *short or long-term relationships*
are exceptionally *lean, low capital investment, flexibility, and speed*
University of Alabama Questions
and Answers
What decisions affect supply chain management? - Answer-Primary supplier selection
criteria, supply chain inventory, distribution network, and product design characteristics
6 Sourcing Strategies: - Answer-1. Many suppliers
2. Few suppliers
3. Vertical integration
4. Joint ventures
5. Keiretsu networks
6. Virtual companies
Many suppliers, sourcing strategy 1, is commonly used for _____ _____, purchasing is
typically based on _______, and suppliers ___________ - Answer-commonly used for
*commodity products*
purchasing is typically *based on price*
suppliers *compete with one another and are responsible for technology, expertise,
forecasting, cost, quality, and delivery*
Few suppliers, sourcing strategy 2, creates ________ through economies of scale and
learning curve improvements, buyer forms ______ _______ relationships w/ fewer
suppliers, suppliers are more willing to participate in _______ _______, cost of ______
_______ is ______, and _______ and other _______ may be at risk - Answer-creates
*value* through economies of scale and learning curve improvements
buyer forms *longer term* relationships with fewer suppliers
suppliers are more willing to participate in *JIT Programs*
cost of *changing suppliers is huge*
*trade secrets* and *other alliances* may be at risk
Vertical Integration, sourcing strategy 3, is integration either _______, towards the
customer, or _______ towards the supplier(s), develops the ability to produce goods or
, services ______ _____, can improve ____________, and is ______ in industries with
_______ ______ _______. - Answer-integration either *forward* towards the customer
*backwards* towards the supplier(s)
develops the ability to produce goods or services *previously purchased*
can improve *cost, quality, delivery, and inventory but requires capital, managerial skills,
and demand*
is *risky* in industries with *rapid technological change*
Joint Ventures, sourcing strategy number 4, is formal collaboration that _____, ______,
and ______. - Answer-*Enhances skills, secures supply, and reduces costs*
Joint ventures runs the risk of: - Answer-diluting the brand of conceding competitive
advantage
Keiretsu Networks, Sourcing strategy number 5, is a middle ground between _______
and _______, suppler becomes part of company _______, provides _______ _______
for suppliers through ________ or ________, expects _______ ________, ______
______, and _______, may extend to several levels of ______ ______, and are similar
to Chaebols but more are family-friendly. - Answer-is a middle ground between *few
suppliers and vertical integration*
supplier becomes part of company *coalition*
provides *financial support* for suppliers through *ownership or loans*
expects *long-term relationships, technical expertise, and stable deliveries*
may extend to several levels of *supply chain*
Virtual Companies, sourcing strategy number 6, rely on a variety of supplier
relationships to provide ____ _____ _____, allow creation of ______ ______ to meet
______ ______ ______, may have _____ or _______ ________, and are exceptionally
_____, ____ _______ ________, ________, and _______. - Answer-rely on a variety of
supplier relationships to provide *services on demand*
allow creation of *unique enterprises* to meet changing *market demands*
may have *short or long-term relationships*
are exceptionally *lean, low capital investment, flexibility, and speed*
