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OM Exam 3| Answered 100% Correctly
Supply Chain Management Coordination of all activities within the supply chain to maximize competitive advantage and benefit the ultimate customer. Data Components of supply chain management. Deliverables Components of supply chain management. Durables Components of supply chain management. Dollars Components of supply chain management. Coordination from raw materials to customer Strategic importance in supply chain management. Sourcing Strategies Six strategies for sourcing in supply chains.
Many Suppliers A sourcing strategy that is competitive and price-focused. Few Suppliers A sourcing strategy that is long-term and relationship-based. Vertical Integration A sourcing strategy involving self-production. Joint Ventures A sourcing strategy involving formal collaboration. Keiretsu Networks A sourcing strategy involving tight coalitions and long-term relationships. Virtual Companies A sourcing strategy that relies on flexible, demand-based partnerships. Supply Chain Risks Factors that can jeopardize supply chain effectiveness. Reliance on fewer suppliers A risk in supply chain management.
Air A fast but expensive shipping system. Waterways A low-value and slow shipping system. Pipelines A shipping system specifically for oil and gas. Multimodal A shipping system that combines different methods. Third Party Logistics (3PL) Outsourced logistics services including warehousing and assembly. Warehouse Storage Purpose Efficient storage decisions improve shipping. Inventory Turnover A measure of supply chain performance. Benchmarking Requires audits, trust, and mutual belief in shared goals.
Sustainability Involves reverse logistics and closed-loop supply chains. Reverse Logistics Returns for reuse or resale. Closed-Loop Supply Chain Plans returns before product launch. Inventory Functions Includes buffering demand, decoupling production, and serving as an inflation hedge. Types of Inventory Includes Raw Materials, Work-In-Process, Maintenance/Repair/Operating, and Finished Goods. Inventory Accuracy & Management Accurate records are critical for effective inventory management. Cycle Counting Used with ABC analysis to eliminate shutdowns and allow error correction.
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Calculated as the number of working days divided by the number of orders. Avg Inventory Calculated as EOQ / 2. EPQ (Production Order Quantity) Used when inventory builds up during production. Max Inv Calculated as Q1−d/p1 - d/p1−d/p. Avg Inv (EPQ) Calculated as Max Inv / 2. Quantity Discount Models Evaluate trade-offs between holding cost and product discount. Types of Quantity Discounts Includes all units, incremental, truckload, BOGO, and one-time sales. Lean Operations Focus on eliminating waste, removing variability, and improving throughput.
7 Wastes (Ohno) Overproduction, queues, transportation, inventory, motion, overprocessing, and defects. 5S Sort, simplify, shine, standardize, sustain. Variability Deviations from optimal process; less variability leads to less waste. Throughput The rate at which products are produced and delivered; improved by pull systems. Supplier Partnerships Collaborative efforts to reduce waste and improve quality and reliability. Supplier Concerns with JIT Include diversification, lead time, quality, and small lot sizes. JIT Layout Tactics Includes U-shaped cells, cross-training, communication, and flexibility. JIT Inventory
