Questions and Answers
Match the level of strategic planning with the explanation:
Corporate = The marketing department's goal is to increase market share through new local market segments. Business Unit = A retail store enters into a new industry that is not related to their current production. Function = The production manager focuses the energy of departments they are in charge of on driving the costs down below the costs of other facilities.
Identify if 'Dual sourcing critical components' is a risk avoidance technique or increased risk to monitor.
Risk avoidance technique
Identify if 'Low-cost substitutes that give competitors a competitive edge' is a risk avoidance technique or increased risk to monitor.
Increased risk to monitor
Identify if 'Carrying safety stock' is a risk avoidance technique or increased risk to monitor.
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Identify if 'Regulatory changes that increase price of supplies' is a risk avoidance technique or increased risk to monitor.
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Identify if 'Technology advancements that obsolete equipment' is a risk avoidance technique or increased risk to monitor.
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Identify if 'Avoiding high-risk suppliers' is a risk avoidance technique or increased risk to monitor.
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An adequate supply strategy links ________ needs and markets to ___________ needs and markets.
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Whereas physical loss can be covered by insurance, indirect damages such as ___________ can be severe and take a long time to recover.
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A plan that focuses on 'do it right the first time' is known as:
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The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both:
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The three levels of strategic planning are (multiple answers):
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The supply manager must use which of the following to manage and evaluate supply decisions? (multiple answers)
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Control charts that monitor production for signs of problems and make needed adjustments are managed under:
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_____________ buying allows the supplier to maintain inventory inside the buyer's facility.
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Most suppliers accept all risk instead of the purchaser.
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An organization must ask the fundamental questions of: (multiple answers)
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Where to buy involves decision trade-offs of local, regional, domestic, or _____________ sources.
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Supply managers must decide _________ versus __________ when making purchases.
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Changes that happen within an organization's strategy will cause _______________ within the supply strategy.
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Supply chain risk planning focuses on:
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When making strategic supply decisions, organizations must also decide if they will acquire __________________ or custom components.
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______________ level decisions answer the questions of what business we are in and how we will allocate resources among the businesses.
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Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions? (multiple answers)
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Higher quality received from suppliers helps to reduce (multiple answers):
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Where to buy decisions involve making strategic choices concerning (multiple answers):
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Key strategy questions that supply managers use to guide 'when' they purchase are? (multiple answers)
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Strategic supply decisions only involve tactical efforts.
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Standardized materials for products can lead to (multiple answers):
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Materials management personnel can have responsibilities in areas such as (multiple answers):
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Administration personnel are responsible for the preparation and routing of formal purchase documents.
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Manufacturing engineering department would like to use an alternate material in production; they should send the request for a study through which supply function?
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Industry sector will influence supply responsibilities; industries can be divided into (multiple answers):
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Involving supply and end customers can lead to delivering a great value in the _____________ cycle times.
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Departments like _______ and _________ must work together for strategic sourcing and media campaigns or special promotions.
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Cross-functional sourcing teams that incorporate supplier participation are useful for teams assigned to evaluate suppliers.
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After a contract is signed, the direction for the flow of materials and services is overseen by:
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Discrete goods from industries face challenges within the supply chain from consumer preferences, innovation, and:
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A car manufacturer wishes to increase their customer focus on new car design; which team is beneficial for them to form to ensure they meet their goals?
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Lack of goal alignment between the _______________ department and the _________________ department can lead to conflicting behaviors.
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Supplier participation teams face obstacles with (multiple answers):
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What are the significant challenges supply managers face when setting objectives and strategies? (multiple answers)
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Supply chain management risks can be classified into categories of (multiple answers):
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Traditionally risks were controlled departmentally, but now they are assessed for ______________ risk exposure to the organization as a whole.
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The three levels of strategic planning are: (multiple answers)
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Financial risks involve supply interruptions that are directly related to the changes in the _______________ of a good or service.
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Some quality assurance programs that can be used to deliver high-quality end-products are? (multiple answers)
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Supply chain risks will only occur once at a time, so supply chain managers will be able to focus their recovery efforts.
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Supply chain operational risks can be separated into which two factors? (multiple answers)
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The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both:
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Key strategic decisions that a supply chain manager must take into account when deciding who should conduct buying are (multiple answers):
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Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions? (multiple answers)
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An effective quality assurance program helps prevent defective end-products and can help increase growth in:
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Key trade-offs an organization may face when deciding on pricing strategies are (multiple answers):
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A plan that focuses on 'do it right the first time' is known as:
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Supply functions must make a strategic decision as to what ________________ location staff will be located.
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The primary reason for supply strategy is to match __________________ goals with __________________ chain goals at the operational and strategic level.
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Some quality assurance programs _______________ suppliers with quality requirements and implementation of programs to achieve the desired results.
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A cost-based strategy will require supply personnel to use the tools of (multiple answers):
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A quality certification program is almost always required when implementing a _________________ - _________________ - _________________ system.
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Key strategic decisions that a supply chain manager must take into account when deciding who should conduct buying are (multiple answers):
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Strategic planning provides organizations a way to:
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Controlling spending within the supply chain can afford an organization the ability to (multiple answers):
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Which of the following is a significant obstacle supply managers may face when developing an adequate supply strategy?
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Under the quality ______________ program, the supplier is depended upon to complete all quality checks, and the incoming inspection can be bypassed.
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Organizational plans should focus on key ______________ and major ______________ to be successful well into the future.
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Match the supply strategy category to the correct description: Better communication between buyers and sellers.
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Match the supply strategy category to the correct description: Reduce the prices of purchased supplies.
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Match the supply strategy category to the correct description: Ensure future needs are met.
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Match the supply strategy category to the correct description: Exploiting market opportunities.
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Match the supply strategy category to the correct description: Ensuring adequate coverage of business needs.
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Match the supply strategy category to the correct description: Understand shifts in the environment and regulatory controls.
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A supply manager must use which of the following to manage and evaluate supply decisions? (multiple answers)
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Suppliers and purchasers work to eliminate supply chain interruptions and:
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How to buy goods and services include a vast array of questions around (multiple answers):
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This level of decisions mold the particular department and involve the allocation of internal resources.
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Most suppliers accept all risk instead of the purchaser.
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How to buy options involve decisions on types of orders such as competitive bids, blanket orders, and open order systems.
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Control charts that monitor production for signs of problems and make needed adjustments are managed under a:
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Whereas physical loss can be covered by insurance, indirect damages such as _____________ can be severe and take a long time to recover.
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Probability and impact assessments go from _____________ probability and _____________ impact to _____________ probability and ______________ impact.
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Organizational objectives normally fall into four categories of survival, ________, _________, and __________.
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Match the level of strategic planning with the explanation: The decision is made to sell the same standard product globally and use the same basic marketing approach in each market.
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Study Notes
Supply Chain Risk Planning
- Focuses on long-term opportunities in supply chains.
- Essential to anticipate and prepare for potential disruptions.
Strategic Supply Decisions
- Organizations must choose between acquiring standard or custom components.
- Corporate-level decisions determine business scope and resource allocation.
Financial Risks
- Include currency rate changes, price fluctuations in raw materials, and increased duties/tariffs.
- Wildfires impacting suppliers are operational risks, not financial.
Supplier Quality
- Higher quality supplies can lower in-house quality costs and production costs.
- Improved supplier engagement reduces overall inventory requirements.
Sourcing Strategies
- Involves decisions regarding single vs. multiple suppliers and certification processes.
- Key strategic questions revolve around inventory needs and domestic vs. international purchasing.
Nature of Strategic Decisions
- Involves long-term strategic choices rather than just tactical efforts.
- Goal alignment between supply and accounting departments is crucial.
Operational Risks
- Classified into events within the supplier's control and those outside it.
- Challenges in discrete goods industries include adapting to short product life cycles.
Quality Assurance
- Key programs include process quality control, quality certification, and zero defects.
- Effective quality assurance increases market share and prevents defects.
Strategic Planning Levels
- Involves corporate, business unit, and function levels to align goals across the organization.
- Ensures comprehensive coverage for business needs and regulatory compliance.
Risk Management
- Supply chain risks are assessed for total exposure to the organization.
- Utilizing risk identification and impact assessment strategies helps manage supply decisions.
Communication and Collaboration
- Internal and external communication plays a fundamental role in shaping the organization’s reputation.
- Cross-functional collaboration among departments like marketing and supply is important for strategic sourcing.
Indirect Damages
- Reputation damage can be severe and difficult to recover from compared to physical losses.
- Effective risk mitigation strategies include dual sourcing and safety stock.
Buying Decisions
- Should consider ethical acquisitions, technology, and systems contracts.
- Challenges include aligning supply objectives with overall organizational goals.
Supply Strategy Categorization
- Different strategies include cost reduction, assurance of supply, and risk management.
- Focus on environmental changes and exploiting market opportunities is crucial for competitive edge.
Certification and Compliance
- A quality certification program is essential for just-in-time systems to ensure supplier compliance.
- Supplier participation enhances responsiveness and capability development.
Control Processes
- Control charts are key tools under process quality control to monitor production and rectify issues.
- Successful supply strategies improve communication between buyers and sellers, minimizing disruptions.### Control Charts and Quality Control
- Control charts are essential for monitoring production and identifying potential problems.
- Adjustments in the production process are managed through a process quality control program.
Consignment Buying
- Consignment buying enables suppliers to hold inventory within the buyer's facility, benefiting both parties.
Risk Allocation in Supply Chain
- Most suppliers do not assume all risks; typically, both suppliers and purchasers share the risks associated with transactions.
Fundamental Organizational Questions
- Key considerations for organizations include:
- Deciding between make or buy options.
- Choosing between insourcing or outsourcing.
Sourcing Sources
- Organizations must evaluate trade-offs when selecting sourcing locations, including local, regional, domestic, and international sources.
Purchase Timing Decisions
- Supply managers face the decision of whether to purchase now or later based on various factors.
Impact of Strategic Changes
- Any changes in an organization’s overall strategy will lead to changes in its supply strategy to ensure alignment.
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Test your knowledge with these flashcards covering key concepts from Chapter 2 of MGT 375. Focus on supply chain risk planning and strategic decision-making. Each card will help reinforce your understanding of essential topics in supply chain management.