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What is the primary focus of Supply Chain Management?
What is the primary focus of Supply Chain Management?
Which decade saw the introduction of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII)?
Which decade saw the introduction of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII)?
What was the predominant focus of U.S. manufacturers during the 1950s-1960s?
What was the predominant focus of U.S. manufacturers during the 1950s-1960s?
How does logistics differ from supply chain management?
How does logistics differ from supply chain management?
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What is a key outcome of effective Supply Chain Management?
What is a key outcome of effective Supply Chain Management?
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Which of the following elements is NOT typically included in Supply Chain Management?
Which of the following elements is NOT typically included in Supply Chain Management?
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What major factor led to the evolution of Supply Chain Management in the 1980s-1990s?
What major factor led to the evolution of Supply Chain Management in the 1980s-1990s?
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Which of the following accurately defines supply chains?
Which of the following accurately defines supply chains?
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What is one significant benefit of effective supply chain management?
What is one significant benefit of effective supply chain management?
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Which factor is NOT typically considered a benefit of pursuing a career in supply chain management?
Which factor is NOT typically considered a benefit of pursuing a career in supply chain management?
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How does effective supply chain management impact purchasing costs?
How does effective supply chain management impact purchasing costs?
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Which of the following is a characteristic of firms that successfully implement supply chain management?
Which of the following is a characteristic of firms that successfully implement supply chain management?
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What is the primary goal of supply chain management?
What is the primary goal of supply chain management?
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What is the primary goal of Just-In-Time (JIT) inventory systems?
What is the primary goal of Just-In-Time (JIT) inventory systems?
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What does Total Quality Management (TQM) primarily focus on?
What does Total Quality Management (TQM) primarily focus on?
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Which of the following is a primary aim of Business Process Reengineering (BPR)?
Which of the following is a primary aim of Business Process Reengineering (BPR)?
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What does Customer Relationship Management (CRM) allow a company to manage?
What does Customer Relationship Management (CRM) allow a company to manage?
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Which initiative focuses on improving supply chain capabilities in the 2000s and beyond?
Which initiative focuses on improving supply chain capabilities in the 2000s and beyond?
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What is emphasized in supply chain management today?
What is emphasized in supply chain management today?
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What is a key aspect of Logistics Management?
What is a key aspect of Logistics Management?
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Which concept reflects the idea of balancing care for people, planet, and profits?
Which concept reflects the idea of balancing care for people, planet, and profits?
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What is the primary goal of logistics?
What is the primary goal of logistics?
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Which type of economic utility refers to the value that comes from having products available when needed?
Which type of economic utility refers to the value that comes from having products available when needed?
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What does place utility involve in logistics?
What does place utility involve in logistics?
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Which of the following activities is NOT typically part of logistics?
Which of the following activities is NOT typically part of logistics?
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Why is it important to consider logistics on a global scale?
Why is it important to consider logistics on a global scale?
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Which utility is concerned with the transformation of products into a usable form?
Which utility is concerned with the transformation of products into a usable form?
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What strategy can organizations use to gain uniqueness in managing logistics?
What strategy can organizations use to gain uniqueness in managing logistics?
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What does freight transport include in logistics?
What does freight transport include in logistics?
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Study Notes
What is Supply Chain Management?
- A network of interconnected organizations working together to control, manage, and improve the flow of materials and information from suppliers to end users.
- Aims to increase value to the end users while delivering at a lower cost, as a whole.
Evolution of Supply Chain Management
- 1950s-1960s: U.S. manufacturers focused on mass production techniques for cost reduction and productivity improvement.
- 1960s-1970s: Introduction of computer technologies led to the development of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) for inventory management and improved internal communication.
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1980s-1990s: Intense global competition led to the adoption of:
- Just-In-Time (JIT): Aligns raw material orders with production schedules, reducing inventory.
- Total Quality Management (TQM): Continually detects, reduces, and eliminates errors in manufacturing, streamlines supply chain management, and improves the customer experience.
- Business Process Reengineering (BPR): Aimed to fundamentally rethink work processes to improve customer service, cut operational costs, and become world-class competitors.
- Customer Relationship Management (CRM): Manages and analyzes customer interactions for improved service and loyalty.
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2000s and Beyond: Focus on improving supply chain capabilities with initiatives such as:
- Third-party service providers (3PLs): Offer specialized logistics services.
- Integrated logistics: Connects and coordinates all management activities related to the flow of materials, information, and goods.
- Client/server SCM software - Enterprise Resource Planning: Provides digital tools for managing and optimizing supply chains.
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Today: Emphasis on environmental and social impacts:
- Sustainability: Meeting current needs without hindering future generations in the supply chain.
- Triple bottom line: Focus on people, planet, and profits.
Logistics Management
- Part of supply chain management that plans, implements, and controls the efficient and effective flow and storage of goods, services, and related information from origin to consumption to meet customer requirements.
- Involves managing the flow of items, information, cash, and ideas through supply chain processes.
- The goal of logistics is to achieve a target level of customer service at the lowest possible cost.
Logistics vs. Supply Chain
- Logistics focuses on the physical movement of goods, while supply chain management encompasses a broader scope encompassing all aspects of the process, including the flow of information and relationships with suppliers.
- Logistics is a subset of supply chain management.
Why Study Supply Chain and Logistics?
- Career stability with high demand and job prospects in numerous locations.
- Opportunities for career growth, international experience, and competitive salaries.
- Transferrable skills applicable to various industries.
- Low barriers to entry.
- Career satisfaction through contributing to efficient and effective supply chains.
The Importance of Supply Chain Management
- Cost savings and better coordination of resources.
- Reductions in safety stocks and costs through coordinated planning and information sharing.
- Lower purchasing and carrying costs.
- Improved product quality and higher customer service levels.
- Increased sales and profits.
Economic Impacts of Logistics & SCM
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Economic Utility: The value or usefulness of a product in fulfilling customer needs.
- Possession Utility: Value derived from taking possession of a product.
- Form Utility: The value of a product being in a usable form for the customer.
- Place Utility: Value created by having products available where they are needed.
- Time Utility: Value from products being available when needed.
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Description
Explore the key developments in Supply Chain Management from the 1950s to the 1990s. This quiz covers major techniques such as Just-In-Time and Total Quality Management that revolutionized the industry. Test your knowledge on how these methodologies aimed to enhance productivity and reduce costs.