Supply Chain Test 1 textbook questions

What is the primary goal of SCM?

create value by balancing efficiency and responsiveness

Which is NOT a typical flow in supply chain?

employee flow

The Supply Chain Operations Reference Model includes which key process?

plan

Which entity is not typically included in the “unity view” of supply chain?

shareholder

A functional view of the supply chain emphasizes?

integration of procurement, production, logistics, and marketing

What best defines supply chain?

management of flows of goods, information, and finances across the network

What does the down stream flow refer to?

Products moving from suppliers to customers

What does the bullwhip effect in supply chain management refer to?

Small changes in customer demand creating large demand fluctuations downstream

Which is the societal benefit of well-managed supply chain?

reducing waste and improving sustainability

What best illustrates the integration nature of Supply Chain Management?

Walmart sharing POS data with suppliers for demand planning

What is a challenge is global supply chain?

increased risk due to longer lead times and disruptions

What function might a warehouse and storage facility include?

mixing inventory assortments

How can logistics negatively affect returns or assets financially?

increasing investments in transportation and warehousing 

Logistics task responsible for electronic tracking and cycle counting and ranging timely replenishments is called?

inventory control

Reconfiguring batches of products into smaller quants or local delivery is known as?

cross docking

What is responsible for all activities related to delivering products at the right place and time?

logistics

What kind of transportation might be best utilized for products with a short product life cycle and unpredictable demand?

Air

What kind of logistics is the process of moving products upstream from the customer to the manufacturer of the supplier?

Reverse

The fastest and most cost efficient way to transport text and images is?

Electronic transportation

What is a central distribution center?

A large hub that receives good in bulk and redistributes them to regional centers

Which warehouse type is best for dividing large shipments into smaller loads for many customers in one area?

break bulk warehouse

Which if the following best describes the purpose of forecasting in supply chain?

to make informed decisions that shape business strategy

An outcome of supply chain partners creating independent forecasts could be?

bullwhip effect

What is an example of quantize forecasting method?

time series

What collaborative method includes retailers and manufactures in jointly forecasting and replenishing?

CPFR

Marketing research is an example of what kind of forecasting method?

quantitive

What requires organizing resources in anticipation of the forecast?

Planning

Which type of forecast would a retailer use to plan the holiday season inventory?

short term

Which modern forecasting method is especially good at detecting patterns in very large data sets?

neural networks

What is Logistics

the business fiction responsible of transporting and delivering products

What are business Logistics?

moving and storing goods throughout the entire supply chain 

What are military logistics?

supporting military needs

What are event logistics?

organizing and deploying resources in preparation for an event

What is just-in-time manufacturing?

shorter production runs, more frequent small quantities inventory deliveries, less safety stock, precise timing

What are reverse logistics?

the process of moving products upstream from the customer back toward manufacturers and suppliers

Facts about Truck transportation

most flexible, government maintains infrastructure, challenge to find qualified dirvers

Facts about Water transportation

ability to transport very large and heavy shipments, very affordable, extremely slow

Facts about Air transportation

appropriate for lighter, smaller, and highly priority items, fastest mode, most expensive mode

Facts about Rail transportation

appropriate for moving heavy loads very long distances, long transit time, low cost, typically combined with another mode

Facts about Pipeline transportation

limited to liquid and gases, very specific infrastructure

Facts about Multimode transportation

several modes are often combined for optimal cost and customer service, coordination can be a challenge, common for companies to use 3PL providers

What is packaging?

protect products during transport and storage, compatible with material handling equipment, and compatible with mode of transportation

What is inventory control?

manage qualities of inventory, arrange for timely replenishments, maintain accurate counts of inventory, and electronic tracking and ‘cycle counting’

What is order fulfillment?

pick and pack order, arrange for transportation, ship order, and assure lead time is not exceeded

What is facility location?

Determine best location of storage facilities, and consider relation to manufacturing facilities, customers, and suppliers

What is material handling?

loading and unloading goods from vehicles, placement and oder picking, moving goods throughout a facility, decide degree of automation vs manual labor

What is transportation?

moves products throughput the supply chain, high cost, must decide mode of transportation, consider required speed security and product characteristics/ requiremnets

What is storage?

where goods will be stored, number of warehouses and distribution centers, amount of inventory to store at each center

Non traditional warehouse tasks

repair items, add labels and price tags, sequence items in preparation for the retail floor, put garments on hangers

What is cross-docking?

inbound —> outbound and mix up all the products to optimize shipments

What is Third-Party Logistics?

outsourcing logistics

What is Supply Chain Management?

the design and management of flows of products, information, and funds through the supply chain

Supply Chain Flow

suppliers→manufactures→distributers→retailers→customers 

What is flow of products?

from the beginning to the final customers, reverse logistics

What is the flow of information?

simplified SC utilize data from the POS back to suppliers, real time information reduces uncertainty and inventory level

What is the flow of funds?

funds are transferred in both directions along the supply chain, supply chain compression

What is the bullwhip effect?

fluctuation and distortion of information increases as it moves up the supply chain

SCOR model flow

orchestrate→plan→order→source→transform→fulfill→return

what is responsiveness?

the ability to move quickly to meet customer demands

What is reliability?

managing uncertainty, visibility, and supply chain coordination

What is forecasting?

the process of predicting future events

What is planning?

the process of selecting actions in anticipation of the forecast

3 Principles of Forecasting 

forecasts are rarely perfect, forecasts are more accurate for the groups than for individual items, forecasts are most accurate for shorter than longe time horizon

5 steps of forecasting

1. decide what to forecast

2. analyze appropriate data

3. select the forecasting model

4. generate the forecasting model

5. monitor forecast accuracy

Factors in Method Selection

amount and type of available data, patterns in the data, degree of accuracy required, length of forecast horizon

What is QUALITATIVE forecasting?

based on subjective opinions

What is QUANTITATIVE forecasting?

based on mathematical modeling, objective and consistent

What are time series models?

generated the forecast from an analysis of a time series of the data

What are casual Models?

assume that the variables being forecast is related to other variables in the environment 

What is Seasonality Adjustment?

forecasts being adjusted to reflect the amount bu which a season is above or below average

CPFR 5 steps

1. create joint objectives

2. develop a business plan

3. create a joint forecast

4. agree on replenishment strategies

5. agree on a technology partner to bring CPFR to fruition

Sales Operations Planning 5 step process

1. generate quantitative sales forecast

2. marketing adjusts the forecasts 

3. operations check forecasts against existing capability

4. marketing operations and finance jointly review forecast and resource issues 

5. executive finalize forecast and capacity decisions 

What is Logistics

responsible for all actives related to delivering products at the right place and right time

What is Supply Chain Management?

Involves the design and management of 3 primary flows: products, information, and funds

What is military logistics?

type of logistics for supporting military needs 

What is demand management?

a process of influencing demand

What is uncertainty

the main reason why companies carry safety stock resulting in higher costs

What is linear regression?

a forecasting model that assumes a straight line relationship between an independent variable and a single dependent variable 

what is a mean forecast

forecast made by taking an average

what is qualitative methods

type of forecasting method is based on subjective opinions

What is seasonality adjustment?

method that allows forecast to be adjusted to reflect the amount by which a season is above or below average

What is CPFR?

this method allows developing joint forecasts and plan with supply chain partners 

What mode of transportation is the most flexible

truck

what mode of transportation is appropriate for lighter, smaller, and higher priority items?

air

What mode of transportation is limited to liquids and gases?

pipeline

What mode of transportation is extremely slow?

water

What mode of transpiration is most challenging in terms of coordination?

Multiomde