CBA 390 - Supply Chain Mgmt - Chapter 11 Notes

CBA 390 - JSU - Supply Chain Mgmt - Chapter 11 Notes

Supply Chain Management

__________ is about making a trade off between cost and flexibility.

Flexible

________ supply chains are better able to cope with variability but are more expensive to operate.

variability

Flexible supply chains are better able to cope with _________ but are more expensive to operate.

expensive

Flexible supply chains are better able to cope with variability but are more _______ to operate.

a network of firms and locations that begins with raw materials and ends with final users.

The supply chain for goods and services consists of:

supply chain for goods and services

The ____________ consists of a network of firms and locations that begins with raw materials and ends with final users.

raw materials ; final users.

The supply chain for goods and services consists of a network of firms and locations that begins with ___________and ends with ___________.

five

A supply chain can be divided into _____ different levels.

Manufacturer
Tier 1 Supplier
Tier 2 Supplier
Distributors
Retailers

A supply chain can be divided into five (5) different levels. What are the five (5) levels?

Tier II Supplier

In supply chain management, the ________ level is responsible for manufacturing of specialized components.

Tier I Supplier

In supply chain management, the ________ level is responsible for designing and assembling of component systems.

Tier II Supplier

Responsible for manufacturing of specialized components.

Tier I Supplier

Responsible for designing and assembling of component systems.

Original Equipment Manufacturer (OEM)

In supply chain management, the ________ level is responsible for the design and assembly of the final product.

Original Equipment Manufacturer (OEM)

Responsible for the design and assembly of the final product.

Distributor

In supply chain management, the ________ level is responsible for the storage of inventory, break-bulk, and transportation.

Distributor

Responsible for the storage of inventory, break-bulk, and transportation.

Retailer

In supply chain management, the ________ level is responsible for the assortment of the product, consumer support and customer service.

Retailer

Responsible for the assortment of the product, consumer support and customer service.

Tier II Supplier

The following examples fall under what level of responsibility in the supply chain management:

B&H Toolworks: Metal Stamping

Tier I Supplier

The following examples fall under what level of responsibility in the supply chain management:

Mitsubishi: Heavy Industries: Aircraft Wings; Robert Bosch: Automobile Brake System; Foxconn: Computers; Intel: Microprocessors; Shimano: Bicycle components

Manufacturer

The following examples fall under what level of responsibility in the supply chain management:

Boeing: Aircraft; Toyota: Automobiles; Apple: Computers; Dell: Computers; Trek: Bicycles

Distributor

The following examples fall under what level of responsibility in the supply chain management:

Sysco: Food; McKeeson: Medical Supplies

Retailer

The following examples fall under what level of responsibility in the supply chain management:

Walmart: General Merchandise; Home Depot: Hardware; Kroger: Groceries

distribute

After producing a product, a manufacture must _______ its products to final consumers.

distributors ; retailers

After producing a product, a manufacture must distribute its products to final consumers. This involves two layers of the supply chain, which are _______ and ________.

1- Brick-and-mortal
2- Mail-Order Retailers
3- Online Retailers

What are the three (3) types of retailers?

Brick and mortal

A retailer with physical stores in which consumers are able to immediately purchase goods.

Mail-order Retailers

Retailers that merchandize their goods via a print catalog and sell to consumers by shipping them goods via a third-party carrier. Also called catalog retailers.

Online Retailers

Retailers that merchandize their goods via an online website (or app) and sell to consumers by shipping them goods via a third-party carrier. Also called e-commerce or e-tailers.

Distribution Center

A building used to receive products from suppliers and then redistribute them to retail stores or send packages to consumers. Also called a Fulfillment Center.

Fulfillment Center

A building used to receive products from suppliers and then redistribute them to retail stores or send packages to consumers. Also called a Distribution Center.

1- Cost effective storage of inventory

2- Faster delivery times

3- Smaller order quantities

What are the benefits of having a distribution center?

1- Cost

2- Service

Supply chains are evaluated on two metrics. What are those two metrics?

Procurement
Labor
Inventory
Transportation

What are the key cost metrics of a supply chain?

Procurement

Cost of purchasing materials

Labor

Cost of employee’s / workers

Inventory

Cost of holding inventory, includes capital, storage, and maintenance

Transportation

Costs of moving product within the supply chain and to consumers

Lead times and inventory availability

In the context of supply chain management, good service is usually measured in two ways. What are those two ways/measures?

In-stock probability

The probability that all demand is served within an interval of time

Stockout probability

The probability that demand for an item exceeds its inventory during a period of time.

1 - In-stock probability

What is the equation for stockout probability?

fill rate

The fraction of demand satisfied

demand

Supply chains must cope with three types of variability associated with _________.

1- Variability in the level of demand. That is, the total demand across the supply chain. For example, how many iPhone 11 in total will be demanded?

2- Variability due to product variety. That is, how does the total demand get allocated across the various flavors, types, or versions of the offered product?

3- Variability due to location. That is, how does the total demand get allocated across the locations in the supply chain?

Supply chains must cope with three types of variability associated with demand. What are those three types?

The Bullwhip Effect

The tendency for demand to become more volatile at higher levels of the supply chain

Overreactive ordering

Batching

Price promotions

If demand at the downstream level of the supply chain is consistent. why does demand at the upstream level jump up and down? What causes the Bullwhip effect?

Failure in quantity

Failure in quality

Failure in finances

Failure in operating practice

How can supply chain partners can increase the variability within their supply chain?

True

True or False:
Because supply chains can span the globe and contain numerous layers, it is not surprising that they can be disrupted due to natural or economic/political events

Variability due to disruptions caused by natural disruptions

Earthquakes, floods other environmental disruptions describe what type of variability?

Variability due to disruptions caused by economic or political disruptions

Wars, conflicts, and other humanitarian crises that may emerge rapidly describe what type of variability?

variability

In the supply chain, if one tries to mitigate the bullwhip effect, make-to-order, online retailing, they are attempting to reduce their __________.

increase their flexibility

In the supply chain, if one tries to use faster transportation, they are attempting to ____________.

reduce costs.

In the supply chain, if one tries to receive their sourcing from overseas, they are attempting to ___________.

cost and flexibility

Supply chain strategies generally involve making a trade-off between what two components?

No

Yes or No:
Does one strategy apply to all supply chains?

True

True or False:

No one strategy applies in all cases of supply chain management.

inventory

Faster transportation reduces __________ but could increase costs.

costs

Faster transportation reduces inventory but could increase ________.

inventory ; costs

Faster transportation reduces ______ but could increase ________.

1- On-order inventory (lo)

2- On-hand inventory (lh)

What are the two types of inventory?

On-hand inventory

“ih” is the abbreviation for what?

On-hand inventory

“io” is the abbreviation for what?

On-order inventory

Inventory that has been shipped but not yet received

On-hand inventory

Inventory that is ready to be used to serve customer demand.

Yes

Is demand a variable?

variable

Demand is considered a _______.

True

True or False:
Demand is uncertain, random, or stochastic.

uncertain, random, stochastic

Demand is _______, _______, or _________.

True

True or False:
Although we cannot predict with certainty what demand will be in any one period, we are able to characterize the demand to some degree.