MGT 375 Chapter 2 Flashcards
83 Questions
100 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

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.

<p>Risk avoidance technique</p> Signup and view all the answers

Identify if 'Regulatory changes that increase price of supplies' is a risk avoidance technique or increased risk to monitor.

<p>Increased risk to monitor</p> Signup and view all the answers

Identify if 'Technology advancements that obsolete equipment' is a risk avoidance technique or increased risk to monitor.

<p>Increased risks to monitor</p> Signup and view all the answers

Identify if 'Avoiding high-risk suppliers' is a risk avoidance technique or increased risk to monitor.

<p>Risk avoidance technique</p> Signup and view all the answers

An adequate supply strategy links ________ needs and markets to ___________ needs and markets.

<p>current, future</p> Signup and view all the answers

Whereas physical loss can be covered by insurance, indirect damages such as ___________ can be severe and take a long time to recover.

<p>reputation</p> Signup and view all the answers

A plan that focuses on 'do it right the first time' is known as:

<p>Zero defects</p> Signup and view all the answers

The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both:

<p>Internal and external</p> Signup and view all the answers

The three levels of strategic planning are (multiple answers):

<p>Corporate</p> Signup and view all the answers

The supply manager must use which of the following to manage and evaluate supply decisions? (multiple answers)

<p>Risk identification and classification</p> Signup and view all the answers

Control charts that monitor production for signs of problems and make needed adjustments are managed under:

<p>Process quality control program</p> Signup and view all the answers

_____________ buying allows the supplier to maintain inventory inside the buyer's facility.

<p>Consignment</p> Signup and view all the answers

Most suppliers accept all risk instead of the purchaser.

<p>False</p> Signup and view all the answers

An organization must ask the fundamental questions of: (multiple answers)

<p>Insourcing or outsourcing</p> Signup and view all the answers

Where to buy involves decision trade-offs of local, regional, domestic, or _____________ sources.

<p>International</p> Signup and view all the answers

Supply managers must decide _________ versus __________ when making purchases.

<p>Now, later</p> Signup and view all the answers

Changes that happen within an organization's strategy will cause _______________ within the supply strategy.

<p>Changes</p> Signup and view all the answers

Supply chain risk planning focuses on:

<p>Long-term opportunities</p> Signup and view all the answers

When making strategic supply decisions, organizations must also decide if they will acquire __________________ or custom components.

<p>standard</p> Signup and view all the answers

______________ level decisions answer the questions of what business we are in and how we will allocate resources among the businesses.

<p>corporate</p> Signup and view all the answers

Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions? (multiple answers)

<p>Price change in raw materials</p> Signup and view all the answers

Higher quality received from suppliers helps to reduce (multiple answers):

<p>In-house quality administrative costs</p> Signup and view all the answers

Where to buy decisions involve making strategic choices concerning (multiple answers):

<p>Single versus multiple suppliers</p> Signup and view all the answers

Key strategy questions that supply managers use to guide 'when' they purchase are? (multiple answers)

<p>How much inventory is needed or wanted on hand?</p> Signup and view all the answers

Strategic supply decisions only involve tactical efforts.

<p>False</p> Signup and view all the answers

Standardized materials for products can lead to (multiple answers):

<p>Lower prices</p> Signup and view all the answers

Materials management personnel can have responsibilities in areas such as (multiple answers):

<p>Scheduling and planning</p> Signup and view all the answers

Administration personnel are responsible for the preparation and routing of formal purchase documents.

<p>True</p> Signup and view all the answers

Manufacturing engineering department would like to use an alternate material in production; they should send the request for a study through which supply function?

<p>Supply research</p> Signup and view all the answers

Industry sector will influence supply responsibilities; industries can be divided into (multiple answers):

<p>Discrete goods industry</p> Signup and view all the answers

Involving supply and end customers can lead to delivering a great value in the _____________ cycle times.

<p>short</p> Signup and view all the answers

Departments like _______ and _________ must work together for strategic sourcing and media campaigns or special promotions.

<p>Marketing</p> Signup and view all the answers

Cross-functional sourcing teams that incorporate supplier participation are useful for teams assigned to evaluate suppliers.

<p>False</p> Signup and view all the answers

After a contract is signed, the direction for the flow of materials and services is overseen by:

<p>Materials management personnel</p> Signup and view all the answers

Discrete goods from industries face challenges within the supply chain from consumer preferences, innovation, and:

<p>Short product life cycles</p> Signup and view all the answers

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?

<p>Team with supplier participation</p> Signup and view all the answers

Lack of goal alignment between the _______________ department and the _________________ department can lead to conflicting behaviors.

<p>supply, accounting</p> Signup and view all the answers

Supplier participation teams face obstacles with (multiple answers):

<p>Intellectual property concerns</p> Signup and view all the answers

What are the significant challenges supply managers face when setting objectives and strategies? (multiple answers)

<p>Choosing the appropriate plan to achieve goals.</p> Signup and view all the answers

Supply chain management risks can be classified into categories of (multiple answers):

<p>Reputation</p> Signup and view all the answers

Traditionally risks were controlled departmentally, but now they are assessed for ______________ risk exposure to the organization as a whole.

<p>total</p> Signup and view all the answers

The three levels of strategic planning are: (multiple answers)

<p>Function</p> Signup and view all the answers

Financial risks involve supply interruptions that are directly related to the changes in the _______________ of a good or service.

<p>price</p> Signup and view all the answers

Some quality assurance programs that can be used to deliver high-quality end-products are? (multiple answers)

<p>Quality certification</p> Signup and view all the answers

Supply chain risks will only occur once at a time, so supply chain managers will be able to focus their recovery efforts.

<p>False</p> Signup and view all the answers

Supply chain operational risks can be separated into which two factors? (multiple answers)

<p>Events that are beyond the supplier's control</p> Signup and view all the answers

The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both:

<p>Internal and external</p> Signup and view all the answers

Key strategic decisions that a supply chain manager must take into account when deciding who should conduct buying are (multiple answers):

<p>Geographic location</p> Signup and view all the answers

Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions? (multiple answers)

<p>Increased duties and tariffs</p> Signup and view all the answers

An effective quality assurance program helps prevent defective end-products and can help increase growth in:

<p>Market share</p> Signup and view all the answers

Key trade-offs an organization may face when deciding on pricing strategies are (multiple answers):

<p>Premium price for additional benefits</p> Signup and view all the answers

A plan that focuses on 'do it right the first time' is known as:

<p>Zero defects</p> Signup and view all the answers

Supply functions must make a strategic decision as to what ________________ location staff will be located.

<p>geographical</p> Signup and view all the answers

The primary reason for supply strategy is to match __________________ goals with __________________ chain goals at the operational and strategic level.

<p>organizational, supply</p> Signup and view all the answers

Some quality assurance programs _______________ suppliers with quality requirements and implementation of programs to achieve the desired results.

<p>assist</p> Signup and view all the answers

A cost-based strategy will require supply personnel to use the tools of (multiple answers):

<p>Value analysis</p> Signup and view all the answers

A quality certification program is almost always required when implementing a _________________ - _________________ - _________________ system.

<p>just-in-time</p> Signup and view all the answers

Key strategic decisions that a supply chain manager must take into account when deciding who should conduct buying are (multiple answers):

<p>Geographic location</p> Signup and view all the answers

Strategic planning provides organizations a way to:

<p>Achieve specific long-term goals and objectives for an organization</p> Signup and view all the answers

Controlling spending within the supply chain can afford an organization the ability to (multiple answers):

<p>Pursue specialized requirements</p> Signup and view all the answers

Which of the following is a significant obstacle supply managers may face when developing an adequate supply strategy?

<p>Translating organizational objectives into supply objectives</p> Signup and view all the answers

Under the quality ______________ program, the supplier is depended upon to complete all quality checks, and the incoming inspection can be bypassed.

<p>certification</p> Signup and view all the answers

Organizational plans should focus on key ______________ and major ______________ to be successful well into the future.

<p>factors, actions</p> Signup and view all the answers

Match the supply strategy category to the correct description: Better communication between buyers and sellers.

<p>Supply chain support</p> Signup and view all the answers

Match the supply strategy category to the correct description: Reduce the prices of purchased supplies.

<p>Cost-reduction</p> Signup and view all the answers

Match the supply strategy category to the correct description: Ensure future needs are met.

<p>Assurance-of-supply</p> Signup and view all the answers

Match the supply strategy category to the correct description: Exploiting market opportunities.

<p>Competitive-edge</p> Signup and view all the answers

Match the supply strategy category to the correct description: Ensuring adequate coverage of business needs.

<p>Risk-management</p> Signup and view all the answers

Match the supply strategy category to the correct description: Understand shifts in the environment and regulatory controls.

<p>Environmental-change</p> Signup and view all the answers

A supply manager must use which of the following to manage and evaluate supply decisions? (multiple answers)

<p>Impact assessment</p> Signup and view all the answers

Suppliers and purchasers work to eliminate supply chain interruptions and:

<p>Reduce the level of inventory needed</p> Signup and view all the answers

How to buy goods and services include a vast array of questions around (multiple answers):

<p>Technology systems</p> Signup and view all the answers

This level of decisions mold the particular department and involve the allocation of internal resources.

<p>Function</p> Signup and view all the answers

Most suppliers accept all risk instead of the purchaser.

<p>False</p> Signup and view all the answers

How to buy options involve decisions on types of orders such as competitive bids, blanket orders, and open order systems.

<p>True</p> Signup and view all the answers

Control charts that monitor production for signs of problems and make needed adjustments are managed under a:

<p>Process quality control program</p> Signup and view all the answers

Whereas physical loss can be covered by insurance, indirect damages such as _____________ can be severe and take a long time to recover.

<p>reputation</p> Signup and view all the answers

Probability and impact assessments go from _____________ probability and _____________ impact to _____________ probability and ______________ impact.

<p>low, low, high, high</p> Signup and view all the answers

Organizational objectives normally fall into four categories of survival, ________, _________, and __________.

<p>growth, sustainability, financial</p> Signup and view all the answers

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.

<p>Corporate</p> Signup and view all the answers

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.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

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.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser