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25 Cards in this Set
- Front
- Back
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Definition of a Supply Chain |
-All parties directly or indirectly, in fulfilling a customer request. -Players: manufacturers, suppliers, transporters, warehouses, retailers, customers -Functions: new product development, marketing, operations, distribution, finance, and customer service |
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Influence of a Supply Chain |
A chain influences the overall success of a business. A chain influences the design of the company such as the speed or the reliability. |
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Three SCM Decision Phases |
1. Supply Chain Strategy or Design 2. Supply Chain Planning 3. Supply Chain Operation |
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1.Supply Chain Strategy/Design |
-Long term, multiple years -Sourcing decisions -Strategic decisions: location and capacities of production of warehouses, modes of transportation |
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2.Supply Chain Planning |
-Quarter up to a year of time -maximizing the supply chain surplus given the constraints resulting from the decisions of the design phase -plan for uncertainty in demand -companies define a set of operating policies that govern the short term operations |
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3.Supply Chain Operation |
-Weekly or daily time horizon -supply chain configuration is considered fixed - handle incoming customer orders -given the constraints of the strategy and planning decisions the goal is to exploit the reductions of uncertainty and optimize performance |
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What are the four process views of Cycle Supply Chain Model? |
-Customer order Cycle -replenishment cycle -manufacturing cycle -procurement cycle |
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Push pull model |
Reactive to customer demand -Push pull boundary or decoupling point is where the customer enters the system -inventory is built up behind this point |
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What are the three SCM macro processes? |
1. Customer Relationship Management CRM 2. Internal Supply Chain Management ISCM 3. Supplier Relationship Management SRM |
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Corporate Strategy/SCM Strategy Strategic Fit? |
-Trade off between customer satisfaction and supply chain expense 1.Customer and Supply Chain Uncertainty 2.Supply Chain Capabilities: Cost Responsiveness Frontier, High efficient vs high responsive 3. Achieving strategic fit: study mismatches between customer needs and strategy |
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Expanding the Strategic Scope of SC |
-Intraoperation Scope: everyone for themselves -Intrafunctional: different functions have different objectives -Interfunctional: focus on maximizing company profit -Intercompany: if everyone focuses on profit functions will turn on each other. P&G Walmart. |
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Challenges to SCM Strategic Fit? |
1. Increasing Product Variety and Shrinking Life Cycles 2. Globalization and Increasing Uncertainty 3.Fragmentation of Supply Chain Ownership 4.Changing Tech and Business Environment 5.Environment and Sustainability |
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1.Increasing Product Variety and Shrinking Life Cycles |
-Apple -Limit variety to deal only with high-volume product, only value added options -common components |
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2.Globalization and Increasing Uncertainty |
-Fluctuations in global economies and demand -Honda built flexible plants that can produce SUV's or not SUVs. |
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3.Fragmentation of Supply Chain Ownership |
-Companies more often have outsourced non-core functions -managing or changing the supply chain is more difficult if you do not own all of it |
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4.Changing Tech and Business Environment |
A technology changes firms must react. -Dell switching from online PCs to retail laptops -Blockbuster taken down by online media such as Netflix and Hulu |
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5.Environment and Sustainability |
Reacting to the growing concern of sustainability and being environmentally conscious -Cell phone parts sourcing and disposal -Starbucks local sourcing -regulations |
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What are the Key financial metrics? |
ROE, ROA, APT, ART, C2C, PPET |
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What are the major drivers of supply chain performance? |
1.Facilities: production or storage, responsiveness vs cost 2.Inventory: changes in inventory strategy are big swings in assets 3.Transportation: ground vs FedEx vs Air 4.Information: biggest driver, data to analyze responsiveness and efficiency 5.Sourcing: locations of production facilities, insourcing vs outsourcing 6.Pricing: affects the behavior of the customer |
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Facility Related Metrics? |
-Capacity -Production Cost per unit -average batch size -flow/cycle time -down time -theoretical cycle time |
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Inventory related metrics? |
-Cash to cash cycle time -Average inventory -inventory turnover -holding cost -Fill Rate -average safety stock |
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Transportation related Metrics? |
-average inbound transportation cost -average incoming shipment size -average outbound shipment cost -fraction transported by mode |
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Information related metrics? |
-forecast horizon -forecast error -seasonal factors -variance |
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Sourcing related metrics? |
-days payable outstanding -average purchase price -average purchase quantity -supply quality -supply lead time -supply reliability |
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Pricing related metrics? |
-profit margin -days sales outstanding -average sales price -average order size -range of sales price |
