MAR 3203 EXAM 4 UCF

local optimization can do what?

Maximizing local profit or minimizing cost in a supply chain is best described as?

magnify fluctuations

(marketing forgets to tell OM something is on sale, surge in demand, may run out)

What type of negotiation strategy is based on published, auction, or indexed prices?

market-based price model

A supply chain ends with? starts with?

a satisfied customer.

raw materials

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?

outsourcing

The advantage of having few suppliers is to

form a​ long-term relationship.

With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true?

Prices are based upon supplier costs.

Which of the following statements is​ TRUE?

a. When multiple suppliers are​ used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.

b. It is usually less risky to use single suppliers rather than multiple suppliers.

c. When multiple suppliers are​ used, having geographically centralized suppliers could lessen the probability of all failing simultaneously.

d. The risk mitigation effectiveness of using multiple suppliers has nothing to do with the probability of a​ super-event occurring.

When multiple suppliers are​ used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.

Which of the following is NOT one of the major causes of the bullwhip​ effect?

shared demand information.

What term is used to describe the outsourcing of logistics?

Third Party Logistics

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________.

Outsourcing.

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

airfreight

The trucking industry is establishing Web sites, which let shippers and truckers find each other in order to ________.

improve logistics efficiency

A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.

dropshipping

Which of the following is not an advantage of the "few suppliers" concept?

Sharing trade secrets between firms

Which one of the following performance measures is not true of a world class firm?

Long lead time

The purchasing approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.

-commodity products, suppliers compete, purchasing based on 1 price

many suppliers

Which of the following is an aspect of environmental risk in supply-chain management?

political issues

With the growth of the JIT, which of the following distribution systems has been the biggest loser?

railroads

A disadvantage of the "few suppliers" strategy is __________.

the high cost of changing partners

The three major variations of online catalogs are grouped by __________.

Internet trading exchange provides a centralized online system for certain industries and elimiates the need to contact multiple companies

online auctions: way to unload excess material or inventory, low barriers to enter. reverse auction for buyers- buyer intiated the process by submitting the desired product or service, potential suppliers then submit bids, bid in downward direction

vendors, intermediaries, and buyer exchange systems

Which of the following is an opportunity for effective management in the supply chain?

channel assembly

Local optimization is a supply-chain complication best described as __________.

optimizing one's local area without full knowledge of the organizational need

What type of negotiation strategy requires the supplier to open its books to the purchasers?

cost-based price model

What type of negotiation strategy does not generally foster long-term relationships?

competitive bidding

Which of the following is not a concern of the supply chain?

maintenance scheduling

Keeping a product generic as long as possible before customizing is known as __________.

postponement

Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?

long term partnering with a few suppliers

Which of the following best describes vertical integration?

developing the ability to produce goods or services previously purchased

addit info-integration may be forward, towards the customer, or backwards, towards suppliers

-Can improve cost, quality, delivery, and inventory but requires capital, managerial skills, and demand

Which one of the following is NOT a supply-chain strategy?

Short-term relationship with few suppliers

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer, therefore, places an even larger order with the lobsterman. This is the result of __________.

the bullwhip effect

The three classic types of negotiation strategies are __________.

cost-based price model, market-based price model, and competitive bidding

More reliance on supply chains means ____________

Fewer suppliers____?

more risk

increase dependence

Occurs when orders are relayed through the supply chain with fluctuations increasing at each step.

bullwhip effect

When calculating bullwhip effect, if measure is greater than one then ________.

If less than one, then_______.

1. variance amplification is present

2. smoothing or dampening is occuring

Disaster risks are also known as

decision trees

________ reduce shipping and productions costs BUT increase inventory holding and do not reflect annual sales.

large lots *contribute to bullwhip

Which shipping system moves the vast majority of manufactured goods?

trucking

Which of the following is true regarding the cost and speed of shipments?

Faster methods tend to involve smaller shipment sizes while slower methods involve very large shipment sizes.

Hoarding supplies for fear of a supply shortage?

shortage gaming

Large, infrequent orders leading suppliers to order even larger amounts?

order batching

What is the technique where a manufacturer sends individual components (rather than assembled units) to a distributor?

channel assembly

The four stages of supplier selection, in order, are:

supplier evaluation, supplier development, negotiations, and contracting

Supplier selection technique

factor weighting technique objectively analyzes a variety of factors both quantitative and qualitative

-each factor assigned weight,each supplier scored on factors, choose one with best

The objective of supply chain management is to:

structure the supply chain to maximize its competitive advantage and benefits to the ultimate consumer

What is choosing between obtaining products and services externally as opposed to producing them internally

Make-or-buy decisions

What are some advantages of joint?

formal collaboration, enhance skills,secure supply, reduce costs

Challenge of joint?

cooperation without diluting brand or conceding competitive advantage

Keiretsu Networks are a:

-middle ground between few suppliers and vertical integration

-Supplier becomes part of the company coalition

-Often provide financial support for suppliers through ownership or loans

-Members expect long-term relationships and provide technical expertise and stable deliveries

what do virtual companies rely on?

variety of supplier relationships to provide services on demand

-Allow the creation of unique enterprises to meet changing market demands

-Relationships may be short- or long-term

-Exceptionally lean performance, low capital investment, flexibility, and speed

push merchandise into the supply chain for sales that have not occurred

incentives

local optimization,incentives, large lots contribute to what?

bullwhip effect

*impact matters

vendor based management

-which is a opportunity of integrating supply chain

has vendors maintaining inventory for the buyers, often physically doing so into directly the buyers facility

>creates mutually beneficial relationship between customer and supplier. availability of inventory at lowest cost

A supplier assumes the role of inventory planner for the customer

1. set clear expectation

2. share information

3.collaborating

-reduces stockouts, less risk, lower cost

long term commitments with suppliers to purchase items which are later delievered

when actual order is released

blanket order

standardization

involves use of common components of different products and cross production facilites

Some companies require for supplier certification:

qualification,education,certification

contracting

besides rules of engagement for relationship, it moderns the supply chain contract is crafted to enable the parties to share risk, benefits, and creating incentives

e-procedurement

what three forms do the catalogs it come in?

speeds purchasing, reduces costs, integrates supply chain

provided by the vendors,intermediaries,industry specfic changes often develop by buyers

objective of logistics management?

obtain efficient operations through the integration of all material acquisition, movement, and storage activities

--essentially moving and storing goods through supply chain

-frequenctly used for outsourcing

core competencies of outsourcing

value, rare, difficult for replication

comine two modes of transportation into one

multimodal

biggest effect in lead time?

transportation

warehouses can perform consolidation and break-bulk to reduce shipping costs by taking advantage of

full truck load discounts

Outsourcing logistics can reduce inventory, costs, and improve delivery reliability and speed. through what?

also:coordinate supplier inventory with delivery services

May provide warehousing, assembly, testing, shipping, customs

third party logistics

the design distrubtion networks to meet customer expectation suggests three criteria:

rapid response-more locations/availability

product choice-products available/online

service

3 primary cost considerations when determining the best number of distribution facilities

inventory costs-costs w/maintaining inv

transportation costs-close to 70%

facility costs-costs w/running facilites

make up logistics costs

Which of the following is NOT one of the sources?

well the sources are:

many suppliers

few suppliers

vertical integration

joint ventures

keiretsu networks

virtual companies

T or F: Most of the revenues do not go towards purchases

false

Which is the false answer?

Short term relationships with few suppliers

What is the bullwhip formula?

variance of orders / variance of demand

any company with multiple facilites must determine which products to procure centrally for all the sites and which to purchase locally at each site

anedoctes can be found in many firms about different branches getting different deals from the same supplier

Leverage volume

Develop specialized staff

Develop supplier relationships

Maintain professional control

Devote resources to selection and negotiation

Reduce duplication of tasks

Promote standardization

centralized purchasing

storing goods in a warehouse for a long period of time remains an ever present activity in many industries.

often less expensive than alternatives such as: accepting back orders,losing sales, paying for express delievery, or storing goods at local sites

may use conveyor belt systems due to size

warehousing

through innovate scheduling of shipments, warehouses can perform consolidation and break bulk activites to reduce shipping costs by taking advantages of full truck load discounts

true

via channel assembly, warehouse can be a excellent place for implementing what?

postponement

integration may be forward, towards the customer, or backwards, towards suppliers through what

vertical integration

how is accurate pull data generated?

by sharing point of sales information and computer assisted ordering

a lot size reduction occurs when?

the benefits of large orders are diminished

ex.providing discounts based on annual volume rather than units per order or reducing cost of placing the order

single stage control of replishment does what?

implies designating one supply chain number to monitor and manage inventory for the whole system

Collaborative planning, forecasting, and replenishment (CPFR)

involves members of the supply chain: sharing, planning, forecasting, and inventory info with each other

electric ordering funds transfer do what

reduce paperwork and reduce transaction costs

bypasses the seller and reduces costs. ships components directly to customers w/out using seller

dropshipping

Speeds purchasing, reduces costs, integrates supply chain

E-procurement

What does the S stand for?

super event

What does the U stand for?

unique event