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10 Cards in this Set
- Front
- Back
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Effective, efficient, and proactive supply chain management can result in: |
Increased chance that supply will equal demand, hence decreasing the cost of shortage or excess Faster time to market with new products and a shorter cash to cash cycle Lower costs, less inventory, and better customer service |
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Which of the following is true regarding supply chains? |
Material typically flows from upstream suppliers to downstream customers Information flows are critically important in todays SC's to help coordinate activities throughout the SC The focal firm is generally the firm in the supply chain that produces the main product that consumers buy or a large retailer |
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Successful modern supply chain management typically is characterized by: |
A focus on core competencies and outsourcing other SC activities Horizontal integration Relying on partner thru voluntary trusting relationships to accomplish tasks in the supply chain formerly done by the focal firm |
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The bullwhip effect is most dramatic for the retailer and diminishes as you move upstream in the supply chain. The retailer sees the greatest swings in demand since they have the best view of real customer demand. Since retailers are typically more capital intensive than other tiers/ nodes in the supply chain, the bullwhip effect impacts the least flexible part of the supply chain. |
False |
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The bullwhip effect can be minimized by: |
Sharing forecast and actual sales data broadly across the supply chain Ordering in small batches and having frequent deliveries Not pursuing new customers when your product is in short supply |
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**See chart for Questions on Supply Chain Picture** |
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Signs that the bullwhip effect is impacting your supply chain include all of the following except: |
Orders at the factory that match closely to orders from the customer |
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Companies that wish to deter shortage gaming in their supply chain when they have to ration a commodity in short supply would be advised to allocate that product based on customers current orders |
False |
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When companies in a supply chain do not coordinate their safety stock strategies, companies will add safety stock on top of safety stock. This can lead to average orders at the factory and raw material providers being significantly greater than actual customer demand |
True |
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Explain horizontal integration and why the trend in modern supply chains is towards more horizontal integration |
Horizontal integration is the reliance on supply chain trading partners (suppliers and customers) to do many activities in your supply chain. All the activities need to be completed, the question is who owns what within the supply chain. Specialization and the need to focus on core competencies has driven the increase in horizontal integration in modern supply chains. The result is lower costs and increased quality as a result of specialization. Horizontal integration can also help to spread risk across supply chain partners. |
