Supply Chain Management Fundamentals
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Which of the following best describes primary activities in the value chain?

  • Firm’s infrastructure
  • Accounting and finance
  • Outbound logistics (correct)
  • Human Resources

    • What is NOT part of the supply chain structure?

  • Upstream
  • External (correct)
  • Internal
  • Downstream

    • What type of flows does the supply chain encompass?

  • Physical flows only
  • Financial, material, and information flows (correct)
  • Accounting flows exclusively
  • Materials and information flows only

    • Which tier in the supply chain consists of raw material suppliers?

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

    Which of these is an example of a secondary activity in the value chain?

    <p>Human Resources</p> Signup and view all the answers

    What is a value chain primarily concerned with?

    <p>Transformation of inputs into valuable outputs</p> Signup and view all the answers

    Which of the following activities is classified as a primary activity in Porter’s Value Chain Model?

    <p>Inbound logistics</p> Signup and view all the answers

    How are secondary activities defined in the context of the value chain?

    <p>Activities that support the primary activities</p> Signup and view all the answers

    What does the transformation process in the value chain involve?

    <p>Changing inputs into more valuable outputs</p> Signup and view all the answers

    In the context of supply chain management, which role does information technology play?

    <p>It streamlines communication and data flow.</p> Signup and view all the answers

    Which of the following best distinguishes supply chain management from the value chain?

    <p>Supply chain management encompasses multiple organizations.</p> Signup and view all the answers

    What is the primary purpose of a value chain in an organization?

    <p>To create a sequence of value-adding activities</p> Signup and view all the answers

    What is included in inbound logistics as part of the primary activities?

    <p>Purchasing materials for production</p> Signup and view all the answers

    What is a key factor determining the success of supply chain management?

    <p>Cooperation among partner companies</p> Signup and view all the answers

    Which of the following metrics is used to monitor supply chain performance?

    <p>Inventory replenishment cycle time</p> Signup and view all the answers

    What must SCM partners do to demonstrate commitment to their partnership?

    <p>Realign their processes</p> Signup and view all the answers

    What is one approach to resolving disputes in a supply chain partnership?

    <p>Clarify and document partnership details</p> Signup and view all the answers

    What is a 'back order' in supply chain terminology?

    <p>An order that cannot be filled due to stock shortages</p> Signup and view all the answers

    What role do big firms play in supply chain cooperation?

    <p>They can enforce cooperation as a business condition</p> Signup and view all the answers

    Why is establishing security policies essential in supply chain management?

    <p>To protect data exchanged between partners</p> Signup and view all the answers

    What should be established to effectively measure performance in a supply chain partnership?

    <p>Clear and agreed upon performance metrics</p> Signup and view all the answers

    What is the primary function of Supply Chain Management (SCM)?

    <p>To improve processes for acquiring raw materials and delivering products</p> Signup and view all the answers

    Which component of SCM focuses on creating relationships with suppliers?

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

    Which of the following enhances supply chain visibility?

    <p>RFID tags and GPS technology</p> Signup and view all the answers

    What is a major benefit of Interorganizational Information Systems (IOS)?

    <p>They reduce errors in information flow.</p> Signup and view all the answers

    In the context of SCM, what does the 'Deliver' component involve?

    <p>Receiving and fulfilling customer orders</p> Signup and view all the answers

    What does the 'Plan' component of SCM entail?

    <p>Designing a strategy for managing resources</p> Signup and view all the answers

    Which of the following correctly defines a supply chain?

    <p>A set of business processes from suppliers to customers</p> Signup and view all the answers

    What is the role of an SCM system?

    <p>To manage information flows within a supply chain</p> Signup and view all the answers

    What is a key goal during the 'Return' phase of SCM?

    <p>To establish a network for handling defective products</p> Signup and view all the answers

    What does the 'Make' component of SCM primarily focus on?

    <p>Manufacturing and preparing products</p> Signup and view all the answers

    Supply chain visibility allows organizations to access information regarding what?

    <p>Material movement through suppliers' processes</p> Signup and view all the answers

    What is one of the main benefits of a well-implemented SCM module?

    <p>Maximizing supply chain effectiveness and profitability</p> Signup and view all the answers

    What is the relationship between supply chain partners according to SCM principles?

    <p>They operate as a singular entity for efficiency</p> Signup and view all the answers

    What is the main characteristic of the push model in supply chain management?

    <p>Production is based on forecasted demand.</p> Signup and view all the answers

    Which statement reflects the pull model of supply chain management?

    <p>Production starts after a customer places an order.</p> Signup and view all the answers

    What is a significant consequence of using an incorrect demand forecast in a supply chain?

    <p>The bullwhip effect.</p> Signup and view all the answers

    What advantage does the pull model offer to companies like Dell?

    <p>Elimination of stock for components.</p> Signup and view all the answers

    What role does Vendor Managed Inventory (VMI) play in supply chains?

    <p>Suppliers manage inventory and shipment processes.</p> Signup and view all the answers

    Which model is most effective for standardized products in high-demand markets?

    <p>Push model.</p> Signup and view all the answers

    How does information sharing help mitigate supply chain issues?

    <p>It improves demand forecasts and reduces stock discrepancies.</p> Signup and view all the answers

    Which of the following statements is true regarding the bullwhip effect?

    <p>It can lead to inefficiencies in a supply chain.</p> Signup and view all the answers

    In Dell's supply chain, what happens once a customer places an order?

    <p>Components are ordered automatically from suppliers.</p> Signup and view all the answers

    Which factor is NOT a source of problems along the supply chain?

    <p>Clear communication across all partners.</p> Signup and view all the answers

    Which company is mentioned as an example that effectively uses the pull model?

    <p>Dell.</p> Signup and view all the answers

    What best describes the pull-based supply chain structure?

    <p>All supply is based on actual customer orders.</p> Signup and view all the answers

    What is a characteristic of products typically associated with the pull model?

    <p>Customization and variability based on preferences.</p> Signup and view all the answers

    What is a key advantage of Electronic Data Interchange (EDI)?

    <p>Minimizes data entry errors</p> Signup and view all the answers

    What is the primary function of an extranet?

    <p>To extend a company's intranet to external partners and customers</p> Signup and view all the answers

    How do RFID tags differ from barcode technology?

    <p>RFID tags do not need direct contact with readers to be read</p> Signup and view all the answers

    What is a significant use of the Virtual Private Network (VPN) in the context of extranet?

    <p>To create a secure connection over the Internet</p> Signup and view all the answers

    What role does Blockchain play in the supply chain management (SCM)?

    <p>It ensures transparency and traceability of transactions</p> Signup and view all the answers

    What is one of the main objectives of using RFID in supply chain management?

    <p>To speed up process of receiving and warehousing products</p> Signup and view all the answers

    Why did Walmart require its top suppliers to embed RFID tags in shipped goods?

    <p>To improve supply chain tracking and efficiency</p> Signup and view all the answers

    What is a central purpose of the web-based Powerway system at Chrysler?

    <p>To track the quality of car parts</p> Signup and view all the answers

    What does an intranet primarily facilitate?

    <p>Internal sharing of information within an organization</p> Signup and view all the answers

    Which of the following is not a benefit of Electronic Data Interchange (EDI)?

    <p>Requires extensive manual data entry</p> Signup and view all the answers

    Which term refers to secure internet connections established for sharing proprietary information with external parties?

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

    What is the main focus of SCM technologies like RFIDs and EDI?

    <p>To improve operational efficiency in supply chains</p> Signup and view all the answers

    How does an extranet generally enhance business operations?

    <p>By allowing secure collaboration with external entities</p> Signup and view all the answers

    What are the main categories of activities in the value chain?

    <p>Primary and Secondary</p> Signup and view all the answers

    Which component does NOT directly fall under the supply chain structure?

    <p>Transportation logistics</p> Signup and view all the answers

    What type of flow is included in the supply chain process?

    <p>Material flows</p> Signup and view all the answers

    Which tier in the supply chain includes factories that convert raw materials into products?

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

    In the context of a supply chain, what is primarily represented by the term 'upstream'?

    <p>Supply of raw materials</p> Signup and view all the answers

    Which type of activities in the value chain directly create customer value?

    <p>Primary activities</p> Signup and view all the answers

    What is the focus of secondary activities within the value chain?

    <p>Supporting primary activities</p> Signup and view all the answers

    In which component of Supply Chain Management does planning operations primarily take place?

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

    What is considered a key goal of the 'Return' phase in Supply Chain Management?

    <p>Customer satisfaction through refunds or replacements</p> Signup and view all the answers

    Which of the following best characterizes the 'Make' component of Supply Chain Management?

    <p>Transforming raw materials into finished goods</p> Signup and view all the answers

    What is a major benefit of integrating Information Technology into Supply Chain Management?

    <p>Enhancing supply chain visibility and communication</p> Signup and view all the answers

    Which statement best describes the relationship between supply chain partners according to SCM principles?

    <p>Collaboration and trust are essential for mutual success.</p> Signup and view all the answers

    What does a well-implemented Supply Chain Management (SCM) module primarily enhance?

    <p>Resource allocation efficiency</p> Signup and view all the answers

    What is a crucial element that SCM partners must establish to ensure effective collaboration?

    <p>Performance measurements</p> Signup and view all the answers

    In supply chain management, what does the term 'back order' refer to?

    <p>Demand against an item whose current stock level is insufficient</p> Signup and view all the answers

    Why is cooperation crucial in supply chain management?

    <p>A supply chain is only as strong as its weakest link</p> Signup and view all the answers

    Which practice is important for resolving conflicts in SCM partnerships?

    <p>Clarifying and documenting all aspects of the partnership</p> Signup and view all the answers

    What type of metrics should be utilized by all SC partners?

    <p>SCM metrics covering all areas of the supply chain</p> Signup and view all the answers

    What is a key focus of the security policies established in SCM?

    <p>Ensuring security and confidentiality of exchanged data</p> Signup and view all the answers

    What actions should firms take to demonstrate commitment to partnership in SCM?

    <p>Realigning their processes and operations</p> Signup and view all the answers

    What is the implication of the statement 'a supply chain is only as strong as its weakest link'?

    <p>Failure in one part can impact the overall success of the supply chain</p> Signup and view all the answers

    What is the primary focus of the Source component in Supply Chain Management?

    <p>Choosing suppliers for necessary goods and services</p> Signup and view all the answers

    Which technology enhances supply chain visibility by providing real-time information on moving products?

    <p>RFID tags</p> Signup and view all the answers

    What is one of the main objectives of Supply Chain Management (SCM)?

    <p>To enhance the efficiency of acquiring and delivering products</p> Signup and view all the answers

    What does the Deliver component of SCM primarily entail?

    <p>Fulfilling customer orders through logistics</p> Signup and view all the answers

    Which of the following best describes the relationship between supply chain partners?

    <p>An integrated virtual organization working collaboratively</p> Signup and view all the answers

    What is a key responsibility during the Make phase of the supply chain?

    <p>Scheduling production and testing activities</p> Signup and view all the answers

    What is a fundamental component of effective Supply Chain Management?

    <p>Dynamic planning and optimizing activities along the chain</p> Signup and view all the answers

    In the context of Supply Chain Management, what is the Return phase focused on?

    <p>Receiving defective or excess products</p> Signup and view all the answers

    What advantage does the use of Interorganizational Information Systems (IOS) provide in supply chain management?

    <p>Improved quality of information flow</p> Signup and view all the answers

    Which step in the SCM process involves developing metrics for measuring performance?

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

    How do SCM modules benefit supply chain partners?

    <p>By maximizing total supply chain effectiveness</p> Signup and view all the answers

    What is one major goal of the planning stage in the supply chain?

    <p>Designing a strategy for resource management</p> Signup and view all the answers

    What aspect does the Source component focus on within SCM?

    <p>Selecting suppliers and establishing contracts</p> Signup and view all the answers

    What is an important feature of a well-implemented Supply Chain Management system?

    <p>It encourages collaboration among all supply chain partners</p> Signup and view all the answers

    What is the primary basis for production in a push model?

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

    Which statement accurately describes the pull model?

    <p>Production is initiated only after receiving a customer order.</p> Signup and view all the answers

    Which company is noted for effectively utilizing the pull model?

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

    What is a significant consequence of the bullwhip effect in supply chains?

    <p>Inefficient resource allocation due to amplified demand fluctuations.</p> Signup and view all the answers

    What is Vendor Managed Inventory (VMI)?

    <p>Suppliers manage inventory levels for retailers.</p> Signup and view all the answers

    How does Dell ensure timely production of customized products?

    <p>By ordering components only after a customer places an order.</p> Signup and view all the answers

    What primarily drives the production decision in a pull-based supply chain?

    <p>Customer orders</p> Signup and view all the answers

    What does the push model typically require in inventory management?

    <p>Larger safety stock levels</p> Signup and view all the answers

    What role does information sharing play in addressing supply chain problems?

    <p>It improves accuracy in demand forecasting.</p> Signup and view all the answers

    Why may the push model be less effective for certain products?

    <p>It does not adapt to changes in consumer demand rapidly.</p> Signup and view all the answers

    Which benefit is associated with the pull model in supply chains?

    <p>Minimizes inventory holding costs.</p> Signup and view all the answers

    What commonly creates inefficiencies in a supply chain?

    <p>Poor coordination and uncertainties.</p> Signup and view all the answers

    What parameter does the bullwhip effect most directly impact in supply chains?

    <p>Safety stock levels fluctuate unpredictably.</p> Signup and view all the answers

    In which scenario can the pull model be most advantageous?

    <p>When products quickly become outdated.</p> Signup and view all the answers

    What is one of the key benefits of Electronic Data Interchange (EDI)?

    <p>Decreases cycle time</p> Signup and view all the answers

    How does an extranet benefit a company?

    <p>It allows secure collaboration with external partners.</p> Signup and view all the answers

    What is a primary advantage of RFID technology over traditional barcode systems?

    <p>RFID tags can be read without direct line of sight.</p> Signup and view all the answers

    Which aspect of supply chain management does the Powerway system focus on?

    <p>Quality control of parts used in production.</p> Signup and view all the answers

    What communication technology uses encrypted tunnels for secure data transfer in supply chains?

    <p>Virtual Private Network (VPN)</p> Signup and view all the answers

    What is the primary function of Electronic Data Interchange (EDI) in supply chain management?

    <p>Enabling electronic exchange of routine business documents.</p> Signup and view all the answers

    Which feature of RFID technology provides significant advantages in supply chain operations?

    <p>Non-contact reading capabilities.</p> Signup and view all the answers

    What characterizes the operational use of an extranet compared to an intranet?

    <p>Secured access for external users.</p> Signup and view all the answers

    What component does Blockchain technology primarily focus on in supply chain management?

    <p>Securing transactions and ensuring transparency.</p> Signup and view all the answers

    Which company was mentioned as mandating RFID tags for enhanced supply chain management?

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

    In the context of supply chain management, what does 'cycle time' refer to?

    <p>The time from order to delivery of goods.</p> Signup and view all the answers

    What advantage does an extranet offer over a traditional intranet?

    <p>It allows for real-time communication with vendors.</p> Signup and view all the answers

    What is one of the main drawbacks of traditional paper documents in supply chain processes?

    <p>Higher costs associated with storage and retrieval.</p> Signup and view all the answers

    Study Notes

    Course Information

    • Course Title: Management Information Systems
    • Course Code: ADM 2372
    • Instructor: Mayur Joshi, PhD
    • Instructor Email: [email protected]

    Week 9: Supply Chain Management (Chapter 11)

    • Topic: Value Chain

    • Definition: A sequence of activities where inputs are transformed into more valuable outputs.

    • Input Example: Car parts

    • Output Example: Car

    • Transformation: The process of value creation

    • Primary Activities: Activities related to production & distribution; create value for which customers are willing to pay.

    • Inbound logistics (inputs).

    • Operations (manufacturing & testing)

    • Outbound Logistics (storage & distribution).

    • Marketing and Sales.

    • Services.

    • Secondary Activities: Activities that support primary activities but don't directly add value to the product or service.

    • Firm's Infrastructure

    • Human Resource Management

    • Technology Development

    • Procurement

    • Topic: Supply Chain

    • Definition: Flow of materials, information, money, and services from raw material suppliers through factories and warehouses to end customers.

    • Structure:

      • Upstream: processes outside the firm
      • Internal: processes within the firm
      • Downstream: processes beyond the firm with respect to the end customers

    • Tiers: Layered approach

    • Flows:

      • Materials flow
      • Information flow
      • Financial flow
      • Money
      • Accounting

    • Topic: Supply Chain vs Value Chain

    • Firm's Value Chain: Integrated internal processes to deliver value to customers.

      • Transforming raw materials to finished products.

    • Supply Chain: Set of business processes that allow suppliers, manufacturers, distributors, and retailers to function as a single virtual organization to deliver products.

      • The partners create value for themselves and customers.

    Topic: Supply Chain Management (SCM)

    • Function: Improve processes for acquiring raw materials, producing a product or service, and delivering it to customers.

    • Includes: Planning, organizing, optimizing various activities within the supply chain.

    • Basic Components:

      • Plan (Strategic):
        • Design a strategy
        • Develop metrics to monitor efficiency & effectiveness
      • Source (Create Contracts & Information Links):
        • Choose suppliers
        • Develop pricing processes
        • Develop metrics to monitor and improve relationships with suppliers
      • Make (Manufacture):
      • Schedule
      • Develop metrics to measure quality levels, production output, & worker productivity
      • Deliver:
      • Receive orders
      • Implement systems
      • Facilitate payments
      • Return:
      • Create networks
      • Support customers

    • Topic: Interorganizational Information Systems (IOS)

    • Function: Enable partners to improve business transactions through accurate information flow.

    • Benefits: Reducing costs, reducing errors, and improving fulfillment speed.

    Topic: SCM Module

    • Management of information flows in a supply chain to maximize effectiveness and profitability.

    • Topic: SCM Software examples from BlueYonder

    • Examples: -Supply Chain Planning (SCP) -Supply Chain Execution (SCE) -Production Planning -Demand Planning -Warehouse Management -Transportation Management

    SCM Best Practices

    • Cooperation: Critical for success, as a supply chain is as strong as its weakest link, and big firms can make cooperation a business condition.
    • SCM Metrics: Key metrics to monitor all supply chain areas for performance.
    • Examples of SCM metrics: Back order, Inventory Replenishment Cycle Time, etc.

    Topic: Blockchain

    • Role in Supply Chains: A promising technology for various aspects of the SCM process.

    Topic: RFID

    • Cost-effectiveness: Cost-effective technology for supply chains.
    • Advantages:
      • Unlike barcodes, RFID tags do not need direct contact with readers.
      • They integrate large amounts of information into the tags.
      • Information is machine readable.

    Topic: The Push Model vs the Pull Model

    • Push Model (Make-to-Stock):
      • Production starts with forecasts of demand.
      • Suppliers produce goods based on their efficiencies.
      • Requires inventory of raw & finished goods.
      • Effective in high-demand standardized products.
    • Pull Model (Make-to-Order):
    • Production begins with customer orders.
    • Companies produce only what customers want.
    • Important for products with frequent changes in design/specs & to minimize inventory.

    Topic: Example 1: Dell's SCM

    • Uses the pull model.

    • Customers configure computers, place orders, and components are ordered automatically.

    • Suppliers ship components to Dell.

    • Dell assembles & ships to the customer.

    • Topic: Problems along the Supply Chain

    • Two main sources:

    • Uncertainties

    • The need to coordinate multiple activities

    • Consequence is the Bullwhip effect

    • Topic: The bullwhip effect

    • Supply chain uncertainties lead to incorrect demand forecasts.

    • Incorrect forecasts lead different members to carry safety stock; this safety stock grows larger as we go upstream (further in the supply chain).

    • Resulting in an inefficient supply chain.

    • Topic: Solutions to Supply Chain Problems

    • Information sharing: Use of EDI & Extranets between partners to enhance forecasting and inventory management.

    • Vendor-managed inventory: Supplier manages the inventory process, improving the supply chain.

    • Topic: Role of IT in Supporting SCM

    • Electronic Data Interchange(EDI): Improves transaction speed, minimises data error, enhances customer service, and minimizes paper usage.

    • Extranets: Extending company intranets to partners.

    • RFIDs: Improves inventory control.

    • Topic: Extranets

    • Network that uses internet technologies to provide capabilities.

    • Secured behind a firewall.

    Topic: Other

    • Example: Chrysler's SCM processes are illustrated as they interact across the supply chain.
      • Information flow among partners, using technology.

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    Management Information Systems PDF

    Description

    Test your knowledge on supply chain structures and value chain activities. This quiz covers primary and secondary activities, types of flows, and the roles of different tiers within the supply chain. Perfect for students and professionals looking to reinforce their understanding of supply chain management concepts.

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