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What is Supply Chain Management (SCM)?
Managing the movement of materials, money, people, services, and information to fulfill customer needs efficiently.
What is Business Strategy?
Choosing what to do and what not to do based on the best available information.
What is Supply Chain Strategy?
The blueprint of choices made to deliver what was promised in the corporate/business strategy.
What is Michael Porter's Definition of Business Strategy?
A broad formula for how a business is going to compete, its goals, and the policies needed to carry out those goals.
What is the CSCMP Definition of SCM?
The planning and management of sourcing, procurement, conversion, logistics, and collaboration with suppliers, intermediaries, and customers.
What is Inventory?
Materials and resources purchased by an organization.
What are the Types of Inventory?
Includes raw materials, work-in-process, finished goods, safety stock, market inventory, anticipation inventory, pipeline inventory, and MRO.
What is the EOQ Formula?
Optimizes order size to minimize total costs.
What is Inventory Turnover?
Measures how quickly inventory is sold.
What is the Pareto Principle (80/20 Rule)?
States that roughly 80% of effects come from 20% of causes, applied in inventory management.
What is Centralized Procurement?
A single team handles purchasing decisions within the organization.
What is Decentralized Procurement?
Local teams manage procurement autonomously.
What is a Smart Contract?
Self-executing agreements with the terms directly written into code.
What is Proof of Work (PoW)?
Miners solve cryptographic puzzles to validate transactions in a blockchain.
What is Proof of Stake (PoS)?
Validators stake assets to confirm transactions in a blockchain.
What is Logistics Management?
The planning, execution, and control of the efficient movement and storage of goods from origin to consumption.
What is Demand Forecasting?
The process of estimating future customer demand for a product or service.
What is Just-In-Time (JIT) Inventory?
An inventory strategy that aligns raw-material orders from suppliers directly with production schedules.
What is Lead Time?
The total time it takes from placing an order to receiving it.
What are Key Performance Indicators (KPIs) in SCM?
Quantifiable measures used to evaluate the success of an organization in meeting supply chain objectives.
What is a Supply Chain Risk?
The possibility of a disruption that affects the supply chain's smooth operation.
What is Reverse Logistics?
The process of moving goods from their final destination for the purpose of capturing value or proper disposal.
What is the Role of Technology in SCM?
Enhancing the efficiency and effectiveness of the supply chain through automation, data analytics, and information sharing.
What is Supply Chain Optimization?
The process of enhancing the performance of a supply chain to achieve the best possible efficiency and effectiveness.
What is Demand Planning?
The act of predicting future customer demand to ensure products are available when needed.
What is the bullwhip effect?
A phenomenon where small fluctuations in demand at the retail level cause larger fluctuations in demand at the wholesale and manufacturing levels.
What are Third-Party Logistics (3PL)?
Outsourced logistics services that manage various aspects of a company’s supply chain, including transportation and storage.
What is a Supply Chain Management System (SCMS)?
A software solution that helps businesses manage and optimize their supply chain operations.
What is Cross-Docking?
A logistics practice where products are unloaded from inbound transportation and directly loaded onto outbound transportation with minimal storage.
What is Sustainable Supply Chain Management?
Managing supply chain processes in a way that considers environmental and social impacts.
What is Capacity Planning?
The process of determining the production capacity needed to meet changing demands for products.
What are Supply Chain Analytics?
The use of data analysis tools and methods to enhance supply chain decision-making and performance.
What is a Supply Chain Network?
A system of interconnected businesses involved in the process of supplying products or services to customers.
What is a Simple Moving Average?
A calculation that helps smooth out data by creating a series of averages based on a specific period.
What is a Weighted Moving Average?
A type of moving average that assigns a different weight to each data point, giving more importance to recent data.
What are the main functions of Supply Chain Management?
Key functions include procurement, manufacturing, transportation, storage, and distribution.
What is a Reefer?
A refrigerated container used to transport perishable goods.
What is Cross-Docking?
A logistics practice where products are unloaded from inbound transportation and immediately loaded onto outbound transportation with minimal storage.
What are Types of Cargo Classifications?
Classifications include dunnage, COFC (Container on Flat Car), TOFC (Trailer on Flat Car), and doublestack.
What are the Characteristics of Modes of Transportation?
Includes speed, cost, capacity, reliability, and accessibility; intermodal combines two or more transportation modes.
What is a TEU?
Twenty-foot Equivalent Unit, a measure used to describe container capacity.
How do you convert TEU to 40-foot containers?
1 TEU equals 0.5 of a 40-foot container.
What is Safety Stock?
The extra inventory kept on hand to prevent stockouts.
What is a Supplier Base?
The collection of suppliers that provide materials or services to a company.
What are Supplier Tiers?
Classifications of suppliers based on their relationship with the company and their level in the supply chain.
What are the types of Inventory?
Types include anticipation inventory, pipeline inventory, MRO (Maintenance, Repair, Operating), WIP (Work in Progress), and FG (Finished Goods).
How to calculate Pipeline Inventory?
Pipeline inventory can be calculated using the formula: Lead Time x Demand Rate.
What is an RFQ?
Request for Quotation, a document used to invite suppliers to bid on specific products or services.
What is an RFP?
Request for Proposal, a document that outlines project needs and invites suppliers to submit proposals.
What is an RFI?
Request for Information, a document used to gather information about suppliers and their capabilities.
What is Total Cost of Ownership (TCO)?
The total cost of acquiring and owning a product or service over its entire lifecycle.
How do you calculate Total Cost of Ownership?
TCO can be calculated by adding acquisition costs, operating costs, and end-of-life costs.
What is a Purchase Order (PO)?
A document issued by a buyer to a seller, outlining the order details and terms of the purchase.
What is the difference between centralized and decentralized purchasing systems?
Centralized purchasing is managed by a single department, while decentralized purchasing allows individual departments to manage their own purchases.
What is Lead Time?
The total time from placing an order to receiving it.
What is Lot Size?
The quantity of inventory ordered for production or purchase.
How do you calculate Lot Size?
Lot size can be calculated using EOQ formula or based on demand and ordering costs.
What is Time Between Orders (TBO)?
The time interval between consecutive orders.
What is Economic Order Quantity (EOQ)?
The order quantity that minimizes total inventory costs.
How do you calculate EOQ?
EOQ = sqrt((2DS)/H), where D = demand, S = ordering cost, H = holding cost.
How to calculate Lot Size where AHC=AOC?
To find lot size where average holding cost (AHC) equals average ordering cost (AOC), use EOQ formula.
What is Average Holding Cost (AHC)?
The average cost associated with holding inventory over a specified period.
What is Average Ordering Cost (AOC)?
The average cost incurred each time an order is placed.
How to calculate the Number of Orders?
Number of orders can be calculated by dividing total demand by lot size.
How to calculate Annual Cost of Inventory?
Annual cost of inventory = Holding costs + Ordering costs.
What is Theoretical Number of Workstations (TM)?
The optimal number of workstations required to meet production goals without excess capacity.
How to calculate Cycle Time?
Cycle time = total production time / number of units produced.
What is Efficiency in manufacturing?
Efficiency measures how well resources are utilized in the manufacturing process.
What is Idle Time?
The period during which a workstation is not producing.
What are Workstations breaking precedence and CT rules?
Workstations that do not follow the required production sequence or exceed allocated cycle times.
What are Manufacturing Layouts?
The arrangement of machines and workstations in a facility designed to optimize production flow.
What defines Blockchain in SCM?
A decentralized digital ledger that ensures transparency and traceability of supply chain transactions.
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