Podcast
Questions and Answers
The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________.
The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________.
What term is used to describe the outsourcing of logistics?
What term is used to describe the outsourcing of logistics?
The four stages of supplier selection, in order, are __________.
The four stages of supplier selection, in order, are __________.
supplier evaluation, supplier development, negotiations, and contracting
Which one of the following is not a supply-chain strategy?
Which one of the following is not a supply-chain strategy?
Signup and view all the answers
With the growth of the JIT, which of the following distribution systems has been the biggest loser?
With the growth of the JIT, which of the following distribution systems has been the biggest loser?
Signup and view all the answers
Which of the following best describes vertical integration?
Which of the following best describes vertical integration?
Signup and view all the answers
__________________ is the technique where a manufacturer sends individual components (rather than assembled units) to a distributor.
__________________ is the technique where a manufacturer sends individual components (rather than assembled units) to a distributor.
Signup and view all the answers
The trucking industry is establishing technologies, which let shippers and truckers find each other in order to ________.
The trucking industry is establishing technologies, which let shippers and truckers find each other in order to ________.
Signup and view all the answers
A disadvantage of the 'few suppliers' strategy is __________.
A disadvantage of the 'few suppliers' strategy is __________.
Signup and view all the answers
Which of the following is not an advantage of the 'few suppliers' concept?
Which of the following is not an advantage of the 'few suppliers' concept?
Signup and view all the answers
The three classic types of negotiation strategies are __________.
The three classic types of negotiation strategies are __________.
Signup and view all the answers
What type of negotiation strategy requires the supplier to open its books to the purchasers?
What type of negotiation strategy requires the supplier to open its books to the purchasers?
Signup and view all the answers
Keeping a product generic as long as possible before customizing is known as __________.
Keeping a product generic as long as possible before customizing is known as __________.
Signup and view all the answers
Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?
Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?
Signup and view all the answers
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 __________.
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 __________.
Signup and view all the answers
Last year, a vendor cost of goods sold was $8,000 and average inventory investment was $500. This vendor's ________ was 16.
Last year, a vendor cost of goods sold was $8,000 and average inventory investment was $500. This vendor's ________ was 16.
Signup and view all the answers
Maximizing local profit or minimizing cost in a supply chain is best described as __________.
Maximizing local profit or minimizing cost in a supply chain is best described as __________.
Signup and view all the answers
A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.
A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.
Signup and view all the answers
Which of the following is an aspect of environmental risk in supply-chain management?
Which of the following is an aspect of environmental risk in supply-chain management?
Signup and view all the answers
Which one of the following performance measures is not true of a world class firm?
Which one of the following performance measures is not true of a world class firm?
Signup and view all the answers
The approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.
The approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.
Signup and view all the answers
Consider a firm with a 2018 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant, and equipment, how many weeks of supply does the firm hold?
Consider a firm with a 2018 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant, and equipment, how many weeks of supply does the firm hold?
Signup and view all the answers
Which of the following is not a concern of the supply chain?
Which of the following is not a concern of the supply chain?
Signup and view all the answers
Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?
Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?
Signup and view all the answers
The three major variations of online catalogs are grouped by __________.
The three major variations of online catalogs are grouped by __________.
Signup and view all the answers
Study Notes
Distribution Systems and JIT
- Railroads have struggled with the Just-In-Time (JIT) manufacturing system due to their inability to provide small, frequent deliveries.
- JIT increases the demand for airfreight and trucking, which can manage frequent deliveries more effectively.
Vertical Integration
- Vertical integration is defined as producing goods or services that were previously purchased.
- This strategy can reduce costs, enhance quality, and ensure timely delivery.
- Notably distinct from vertical integration are few suppliers, which focuses on maintaining long-term partnerships.
Channel Assembly
- Channel assembly involves manufacturers sending individual components to distributors, who are responsible for final assembly.
- This method helps streamline supply chain management by distributing assembly responsibilities.
Trucking Technologies
- The trucking industry is leveraging technologies to connect shippers and truckers to improve logistics efficiency by utilizing idle capacity.
Few Suppliers Strategy
- A major drawback of the "few suppliers" strategy is the high cost associated with changing partners due to established dependencies.
Sharing Trade Secrets
- Sharing trade secrets is not an advantage of the "few suppliers" concept, as trade secrets provide competitive advantages and are typically not disclosed to other firms.
Negotiation Strategies
- Classic negotiation strategies include cost-based price models, market-based price models, and competitive bidding.
- The cost-based price model requires suppliers to disclose financial records to establish appropriate costs.
Postponement
- Postponement refers to keeping a product generic until customization is necessary, allowing companies to better meet customer demands.
Airfreight
- Airfreight is the fastest and most reliable distribution method for shipping emergency supplies overseas.
Bullwhip Effect
- The bullwhip effect describes the distortion and fluctuation in order sizes and demand perception as information moves through the supply chain.
Inventory Turnover
- Inventory turnover measures how often inventory is sold and replaced, calculated as the cost of goods sold divided by average inventory investment.
Local Optimization
- Local optimization refers to focusing on maximizing local profits or minimizing costs without considering the overall needs of the supply chain.
Drop Shipping
- Drop shipping is a fulfillment method where goods are shipped directly to the end consumer from the manufacturer instead of going through a retailer.
Environmental Risk
- Political issues and tariffs are considered environmental risks that supply chain managers must assess due to their global operations.
World Class Firm Attributes
- World class firms are characterized by short lead times and high on-time delivery rates, contrasting with companies that exhibit long lead times.
Supplier Responsibility
- The many suppliers strategy holds suppliers accountable for maintaining necessary competencies in technology, quality, and forecasting.
Weeks of Supply
- Weeks of supply helps determine how long current inventory will last based on average weekly sales.
Supply Chain Concerns
- Maintenance scheduling falls outside the primary concerns of supply chain management, which focuses on procurement, storage, and delivery processes.
Economies of Scale
- Long-term partnerships with fewer suppliers create economies of scale, allowing for cost-efficient production and resource allocation.
Online Catalogs
- Online catalogs can be categorized into three groups: vendors, intermediaries, and buyer exchange systems, facilitating various purchasing strategies.
Outsourcing
- Outsourcing involves transferring traditional internal activities and resources to external vendors, often for efficiency.
Third-Party Logistics
- Third-party logistics (3PL) refers to outsourcing logistics functions to specialized service providers to optimize inventory costs and improve delivery reliability.
Supplier Selection Process
- The supplier selection process involves four stages: supplier evaluation, supplier development, negotiations, and contracting, each critical for ensuring reliable partnerships.### Product Development Stage
- Outlining product specifications is essential for setting clear expectations and requirements.
- Developing quality control systems ensures consistency and reliability in products.
- Creation of a payment system facilitates transactions and financial management.
- Development of procurement policies guides the sourcing and acquisition of products and services.
Negotiation Stage
- Focuses on key elements such as quality, delivery timelines, payment terms, and overall costs.
- Effective negotiation seeks to balance the interests of all supply chain members.
Contracting Stage
- Clearly outlines the terms of the relationship among supply chain members.
- Designed to share risks and benefits, promoting collaboration.
- Incentive structures are created to encourage optimal policies throughout the entire supply chain.
Supply-Chain Strategies
- Vertical integration is a common strategy that involves controlling multiple stages of production or distribution within a supply chain.
- Continued negotiation with many suppliers enables competitive pricing and access to diverse resources.
- Short-term relationships with few suppliers are not considered a viable supply chain strategy due to lack of trust and stability in partnerships.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge with these flashcards from Chapter 11, focused on logistics and distribution systems. Learn about the impacts of Just-in-Time (JIT) manufacturing on different transportation methods. Perfect for students looking to reinforce their understanding of logistics concepts.
