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85 Cards in this Set
- Front
- Back
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Supply Chain Management
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firms and divisions collaborating to leverage strategic positioning and improve operating efficiency
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Logistics
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the work required to move and position inventory throughout a supply chain.
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What does logistics include?
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The company's order/entry, inventory, transportation, warehousing, materials handling, and packaging elements as they are integrated throughout a facility network.
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What are the three main important topics integrative management?
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collaboration, enterprise extension, and integrated service providers
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What does 1984 National Cooperative Research and Development Act do?
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Encourages companies to collaborate and form supply chains
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What two important things in Enterprise Extension?
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Information Sharing and Process Specialization
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Should Information Sharing in a supply chain be limited to sales data?
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No. It should be extensive. (e.g. plans detailing promotion, new product introduction, and day to day operations, future strategic initiatives and facilitate joint operations)
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Whats is process specialization?
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to focus collaborative arrangements on planning join operations with a goal of elimination nonproductive or non-value-adding redundancy by firms in a supply chain.
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What are the classifications of Integrated Service Providers (ISPs)?
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3PL asset based, 4PL non asset based.
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What is 4PL non asset based?
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A classification of ISP that specialize in providing comprehensive information services that facilitate supply chain arrangements
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What is 3PL asset based?
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A classification of ISP that has owns and operates transportation equipment and warehousing building
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What is the anticipatory business model?
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Forecasting demand to find how much product is needs to be produced.
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What are the problems with anticipatory business model?
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1. Risky, often wrong (makes shortages or overages)
2. Can create mistakes throughout the supply chain 3. Excess inventory/ cost throughout the supply chain. |
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How did the responsive business model came to be?
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information technology; it has made the sharing of information quick
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What is the responsive business model?
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The use of real time customer requirements to accurately produce what is demanded.
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What are the three types of postponement?
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Manufacturing, form, geographic, and logistics
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What is postponement?
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The delay in supply chain
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What is manufacturing postponement?
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Made upon order
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What are the benefits of manufacturing postponement?
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Maintain some manufacturing economies of scale, less total inventory required
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What are used for final assembly in manufacturing postponement?
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logistical warehouses
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What is geographic postponement?
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Delays product movement until a customer order
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What is the benefit of geographic postponement?
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full manufacturing economies of scale can be achieved.
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What is cash-to-cash conversion?
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the time required to convert raw material or inventory purchases into sales revenue.
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Higher the inventory turn...
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The quicker the cash conversion.
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What is dwell time?
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the ratio of time that an asset sits idle to the time required to satisfy its designated supply chain mission.
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What is cash spin?
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a popular term for describing the potential benefits of reducing assets across a supply chain.
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What does company want to happen to dwell time of their inventory?
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be reduced
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What do companies need to consider in the global marketplace?
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Distance, Documentation requirements, Workforce; culture hours, work week, holidays etc., product demand and acceptance by new culture.
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What the four economic utilities that add value to customers?
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form, possesion, time and place
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What is transactional marketing?
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series of short-term sales relationships (only worrying about the customer requirement and needs)
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What is relationship marketing?
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long term relationship with all key supply chain partners. Promotes customer, vendor, and sc loyalty.
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What are the three basic service challenges?
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space, time, and quantity/assortment
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Challenge of Space
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difference between location of product and location of demand
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Challenge of quantity and assortment
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difference between the production and consumption sectors of the economy
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To overcome service challenges, companies must establish...
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spatial convenience, lot size, waiting or delivery time, and product variety and assortment
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Spatial Convenience
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How many places are the companies going to put their product so, the customer can find it.
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Lot Size
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Numbers of units purchased in a transaction
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Availability is based on three performance measures...
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Stockout Frequency, Fill Rate, and Order Shipped when Complete
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Fill rate
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measures the magnitude or impact of stockouts overtime
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Operational Performance
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the time required to deliver a customer's order
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Operational Performance is specified in...
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Speed, Consistency, Flexibility, and malfunction recovery
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speed (operational performance)
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how much time does it take the product to get to the customer
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Consistency (Operational Performance)
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by the number of times that actual cycles meet the time planned for completion.
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Flexibility
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ability to accommodate special situations and unusual or unexpected customer requests.
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Service Reliability
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achieve all order related task and provide all information to customers
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Determinants of Basic Service level
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Competition, Industry acceptable standard, and marketing strategy, market leader: best price or best in service
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What do customers expect?
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Reliability, Responsiveness, Access, Communication, Credibility, Security, Courtesy, Competency, Tangibles, and Knowing the customer
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Procurement
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Purchase of supplies, materials, and services by one company from another company.
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Total Quality Management is focus on...
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customer, Supply chain, and commitment to improvement
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Organization for trading internationally
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International Organization for Standardization
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Procurement Considerations
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Continuous supply, Minimize inventory investment, Continuous quality improvement, Develop suppliers, Seek lowest total cost, not lowest purchase price
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Procurement Strategies
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Supplier volume consolidation, Supplier operational integration, Value management
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Manufacturing
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adds value by converting raw materials into consumer or industrial products
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What are the elements of manufacturing competency?
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Brand Power, Volume, Variety, Constraints, and Lead-Time
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Brand Power
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Customers purchase preference
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Volume
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Relationship of cost per unit to volume of output
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Large Volume =
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Economy of scale opns cost per unit is down
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Small Volume =
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Few, long lead time runs
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Volume impacts in logistics in...
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transportation load consolidations and warehouse reqmts
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Variety =
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Economies of Scope
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Variety Impacts Transportation by...
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smaller loads, more expensive, fewer warehouses reqd or large loads, less expensive but more warehouse required
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Just-In-Time (JIT) provides
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reduced handling, storage, inventory requirement
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JIT benefits is...
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Less buffer stock required, lower inventory levels
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Success of JIT depends on...
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Much coordination between supplier and manufacturer
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Manu. Processes
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Job Shop, Batch, Line Flow, and Continuous products
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Job Shop
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Customized job for specific customers
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Batch (Manu. Process)
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Low quantity of product with customer who want variety
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Line Flow
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Few quantity with low variation
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Continuous products
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Large quantity with little to none variation
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Ultimate Goal of Log/SC
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Lowest total cost
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Material Requirement Planning (MRP)
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Complex system to integrate interface between manufacturer and its suppliers
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Make to Order (MTO) manufacturing impact
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economy of scope opns, higher per unit cost, lower inventory carrying cost
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Make to Order procurement impact
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smaller lot purchasing at greater cost per unit cost
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Make to Order logistics impact
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no consolidation, ship smaller loads at greater cost, use premium transportation at greater cost. Fewer warehouses required
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Make to Plan (MTP) manu. impact
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economy of scale opns, long lead times, lower per unit cost, high volume of finished goods, higher inventory carrying cost
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Make to Plan procurement impact
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large volume discount savings
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Make to Plan (MTP)
logistics impact |
Transportation consolidations, routine transportation at less costs. More warehousing requirements and costs
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Assemble to Order (ATO) manu. impact
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some economy of scale, some savings with lower per unit cost, postponements likely used, most flexible.
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Assemble to Order procurement impact
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some volume discounts available
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Assemble to order logistics impact
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log facilities req’d for postponement activities, some transportation savings with limited consolidation and routine carriers, likely higher warehousing cost
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Decision Analysis
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Compare/Evaluation with software
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Strategic Planning
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Using databases to evaluate various strategies
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What is the goal of logistics?
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Getting products and services where and when they are needed at the lowest total cost and customer accommodation
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What is the basic service level in logistics?
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Availability, Operational Performance, and Service Reliability
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Logistics create value through...
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Service Benefits and Cost Minimization
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