SCM-454 Exam 1

Operational Hedging

Maintaining excess capacity in different countries and shifting production levels among those countries as costs and exchange rates change

Reverse logistics

The process of sending returned products back up the supply chain for value recovery or disposal.

Channel assembly

Postpones final assembly of a product so the distribution channel can assemble it.

Center of gravity technique

is a location selection method that minimizes the total transportation costs between a set of demand points and a single facility.

Cross docking

Avoiding the placement of materials or supplies in storage by processing them as they are received for shipment.

Supplier selection first stage

Identifying potential suppliers

Transnational strategy

A strategy that combines the benefits of global-scale efficiencies with the benefits of local responsiveness.

La Quinta location technique

A method used in urban planning and geography that involves identifying and analyzing the ________ of various features or phenomena within a given area to optimize resource allocation and development strategies.

Bullwhip effect

The increasing fluctuation in orders that often occurs as orders move through the supply chain.

What stage in the supply chain has the smallest order quantity fluctuation

consumer level

Circular economy

Keeps and uses resources for as long as possible, recovering and regenerating the maximum possible value at end of life.

Risk reduction from vertical integration

a company controlling multiple stages of production or distribution to minimize uncertainties and potential losses.

Requirements of a work cell

Layout Efficiency, Multifunctional Equipment, Team Collaboration, Continuous Improvement

Advantages of process oriented layout

A layout that deals with low-volume, high-variety production in which like machines and equipment are grouped together.

What is a mission

The purpose or rationale for an organization’s existence

What is a job shop

A manufacturing facility that produces custom parts or assemblies in small quantities

Global strategy

A strategy in which operating decisions are centralized and headquarters coordinates the standardization and learning between facilities.

Multidomestic strategy

A strategy in which operating decisions are decentralized to each country to enhance local responsiveness.

Method that considers both qualitative and quantitative in location selection

Factor rating

Cash to cash cycle time

a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Graphical link of competitive advantage, KSFs and supporting activities

An activity map is a graphical link of competitive advantage, key success factors (KSFs), and supporting activities.

Advantage of having many potential suppliers

leverages competition among suppliers to ensure cost efficiency and high performance, while also providing flexibility and reducing dependency-related risks

Effective contracts with penalties in SC risk

ensure accountability and encourage supply chain partners to adhere to agreed standards, ultimately leading to a more reliable and efficient supply chain.

Why outsource logistics

cost savings, enhanced focus on core activities, scalability, access to advanced technology, and improved customer service.

Geographic Information System’s role in location

a tool that stores, accesses, displays, and links demographic information to a geographical location.

5 forces

Immediate Rivals, Potential Entrants, Customers, Suppliers, Substitute Products

Value-chain analysis

examining the activities within and around an organization to understand how they contribute to creating value for customers.

ISO 14001

A series of environmental management standards established by the International Organization for Standardization

Optimal number of locations

involves balancing customer satisfaction with cost efficiency to maximize profit.

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.

Vendor managed inventory

A system in which a supplier maintains material for the buyer, often delivering directly to the buyer’s using department.

Supply chain optimizing forward flows

This involves the traditional flow of products from suppliers to customers. It includes activities like production, warehousing, and distribution.

Economic comparison of location alternatives

determine the fixed and variable cost for each location, plot the costs for each location, and select the location that has the lowest total cost for the expected production volume.

Why outsource non-core activities

which can be a sizable portion of an organization’s total business, are good candidates for outsourcing.

Supply chain starts with the

selecting the right suppliers

Use of the factor weighting method to choose suppliers

a structured approach to evaluate and select suppliers by considering multiple criteria simultaneously.

Theory of comparative advantage

A theory which states that countries benefit from specializing in (and exporting) goods and services in which they have relative advantage, and they benefit from importing goods and services in which they have a relative disadvantage.

Differentiation

Distinguishing the offerings of an organization in a way that the customer perceives as adding value.

SCOR model

identify, measure, reorganize, and improve supply chain processes.

Cost-based price model negotiations strategy

where the supplier opens its financial records to the purchaser.

3Ps

People, Process, and Physical Evidence

Disney’s type of differentiation

making the visit more than just a series of rides but a comprehensive, sensory-rich adventure

Competition is between countries not companies

the efficiency and effectiveness of their logistics and transportation systems, often influenced by national policies and infrastructure, play a crucial role in their global competitiveness.

Transportation model

a linear programming technique used to minimize the cost of shipping products from multiple sources to multiple destinations

Supply chain optimizing reverse flows

This deals with the return of products from customers back to the supply chain for purposes such as resale, repair, reuse, remanufacture, recycling, or disposal.