Supply Chain Management Issues

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Questions and Answers

What is essential for ensuring quality in a supply chain?

Evaluating supplier negotiations

Assessing the operating conditions of the supply chain (correct)

Implementing advanced marketing techniques

Analyzing competitor strategies

What factor can potentially cause disruption in the supply chain?

Streamlined transportation routes

Unexpected demand fluctuations (correct)

Enhanced technology integration

Consistent supplier performance

Why is the evaluation of suppliers' selection important?

To ensure demands can be met during negotiations (correct)

To reduce shipping costs significantly

To increase the number of suppliers available

To focus solely on price competitiveness

What mode of transportation issue can affect supply chain efficiency?

Breakdown of delivery vehicles Signup and view all the answers

What type of goods requires special attention in warehouse storage?

Perishable goods Signup and view all the answers

Which of the following risks must be accounted for in supply chain evaluations?

Disasters that cannot be foreseen Signup and view all the answers

The bullwhip effect in supply chains refers to what phenomenon?

Small changes in consumer demand leading to larger fluctuations in orders Signup and view all the answers

What is a consequence of inadequate storage conditions for perishable goods?

Loss of goods and adverse profit impact Signup and view all the answers

Which section of SOX emphasizes the importance of internal process controls?

Section 302 Signup and view all the answers

What type of obligations is impacted by Section 401a of SOX?

Off-balance sheet obligations Signup and view all the answers

Which of the following risks is NOT classified under the economic risks faced by supply chain executives?

Natural catastrophes Signup and view all the answers

Timely reporting of material changes in SOX is associated with which section?

Section 409 Signup and view all the answers

Which of the following represents a technological risk for supply chain executives?

Breakdown of critical information infrastructure Signup and view all the answers

Which category of risk includes pandemics according to the classification provided?

Societal risks Signup and view all the answers

What aspect of supply chain management is affected by poor inventory accuracy?

Internal process controls Signup and view all the answers

Which of the following is NOT a component of internal process controls as per SOX?

Vendor managed inventory Signup and view all the answers

What could be a consequence of compromised computer systems for a firm?

Loss of data and inability to communicate Signup and view all the answers

Which of the following is NOT considered a natural disaster impacting supply chains?

Flu pandemics Signup and view all the answers

What is the primary role of supply chain management (SCM) during disasters?

To deliver relief supplies effectively Signup and view all the answers

How can severe employee illness impact supply chain operations during a global disaster?

It may cause a significant slowdown in supply chain efforts. Signup and view all the answers

Which of the following are types of events categorized as disasters?

Transportation accidents Signup and view all the answers

Which issue is primarily concerned with ensuring normal operations during a disaster?

Supply chain resilience Signup and view all the answers

What impact can the loss of data have on a firm's operations?

It can lead to inability to meet customer demands. Signup and view all the answers

Which aspect of a global disaster is crucial for effective supply chain management?

Managing resource availability and logistics Signup and view all the answers

What is a major consideration for operations or logistics managers beyond cost estimation?

Ensuring on-time delivery Signup and view all the answers

What impact does proper placement of items in a warehouse have?

Improves efficiency by reducing travel time Signup and view all the answers

What percentage of U.S. warehouses exceed 100,000 square feet in floor space?

35% Signup and view all the answers

What is one of the challenges in evaluating shipping alternatives for operations managers?

Estimating the impact and cost of other considerations Signup and view all the answers

What is one of the primary learning outcomes related to evaluating supply chains?

Discuss the techniques for evaluating supply chain and the disaster risk that may affect it. Signup and view all the answers

Why is it important to coordinate shipments for logistics management?

To maintain a shipping schedule Signup and view all the answers

Which of the following statements about warehouse storage is true?

Many warehouses are designed for efficiency. Signup and view all the answers

What is the Bullwhip Effect in supply chain management?

The amplification of demand fluctuations along the supply chain. Signup and view all the answers

Which of the following is likely affected by Typhoon Signal #3 in supply chain operations?

Supplier availability Signup and view all the answers

Which of the following techniques is emphasized for minimizing supply disruptions?

Use a decision tree to assess the optimal number of suppliers. Signup and view all the answers

What is a potential problem with large warehouses when storing items?

Managing long aisles leads to inefficiencies Signup and view all the answers

What is a significant advantage of using a large warehouse in supply chain management?

Enhanced inventory control Signup and view all the answers

What is a significant logistical consideration for getting a new product to market?

Coordination of shipment logistics Signup and view all the answers

What role does supplier selection analysis play in supply chain management?

It helps in assessing suppliers based on multiple criteria. Signup and view all the answers

Why is it essential to choose the right transportation mode in the supply chain?

To ensure that products are delivered on time and cost-effectively. Signup and view all the answers

How does a moderately running delivery truck impact supply chain efficiency?

It leads to longer delivery timelines. Signup and view all the answers

Which statement best describes the advantages of having a fast supplier in the supply chain?

They facilitate quick response to market changes. Signup and view all the answers

How can a supply chain manager utilize the bullwhip measure?

To identify which members contribute to order fluctuations. Signup and view all the answers

What is a potential disaster risk that can affect supply chains?

Natural disasters impacting production and delivery. Signup and view all the answers

What is the bullwhip effect in supply chain management?

Small changes in consumer demand lead to larger fluctuations in supply chain orders. Signup and view all the answers

What is a key benefit of evaluating supply chains?

It helps in making informed decisions to improve efficiency. Signup and view all the answers

In choosing a transportation mode for dressed chicken, which option would be most appropriate?

Plane Signup and view all the answers

When assessing supply chain techniques, which factor is least likely to be affected by large warehouse capacity?

Transportation time Signup and view all the answers

Which of the following transportation methods is typically the slowest for product delivery?

Train Signup and view all the answers

Study Notes

Competence: Discussion and analysis of societal, business-related, and organizational issues impacting SCM.
Course Outcomes: Students will be able to identify the effects of current and future trends in supply chain management and assess supply chain processes to optimize them.
Learning Outcomes: Students will enumerate and analyze societal/regulatory issues and business-related/organizational issues impacting SCM.

Learning Module 3.1 Gross Domestic Product

Gross Domestic Product (GDP) is highlighted by logistics, which accounts for 7.5% of U.S. GDP in 2016, a low point since 2009.
Logistics has an impact on interest rates, inflation, productivity, energy costs, availability, employment, and the U.S. economy.
Globalization involves international marketing, manufacturing, and distribution.

Customer service and satisfaction are key for profitability in business.
Human resources are crucial for delivering customer satisfaction.
Technology and financial aspects are organizational issues in SCM, impacting efficiency.

Supply Chain Management and Gross Domestic Product (GDP)

There is no study capturing all aspects of supply chain costs.
Improvements in a nation's productivity positively affect prices for consumers, businesses, and governments.

Globalization and Global Trends

Logistics costs (as a percentage of U.S. GDP) declined from 1980 to the early 2000s, rising significantly in the new millennium.
Organizations are increasingly involved in international marketing, manufacturing, or distribution.
Global trends like increasing complexity in integrated SCM, international trade, and the need for skills & competencies are mentioned.

Sustainability in the Supply Chain

Increasing concern for environmental, health, safety, and sustainability in supply chains.
Companies are embracing EHS&AS in their operations (for example, Nike's sustainable distribution center in Belgium).
Alternative energy sources are predicted to replace fossil fuels in coming decades (with possible implications for supply chains).

Supply Chain Infrastructure

Infrastructure (e.g., roadways, rail systems) is often created by government for multiple purposes like moving people, safeguarding, and expanding business.
Insufficient infrastructure impacts the efficiency of supply chains. This includes problems with transportation, waterways, and infrastructure in the U.S.

Regulatory Issues

Supply chain management is subject to various types of regulations (local, state, federal, and international).
Legislation like the Sarbanes-Oxley Act (SOX) in 2002 is mentioned as an example of regulations impacting supply chains (for transparency in corporate financial statements).
Other risks are briefly mentioned, including economic, environmental, geopolitical, and societal issues.

Cyber Supply Chain Best Practices

Security requirements should be included in RFPs and contracts to mitigate potential risks.
Suppliers must comply with and participate in security assessments.
Companies should proactively address cyber vulnerabilities in their supply chains (e.g., one-strike policies, proper inspection of parts).

Disaster Preparedness and Relief

Disasters (natural and otherwise) can greatly impact supply chains and commerce.
Disaster relief, and the ability of organizations to function normally despite disruption are relevant points.
Flu pandemics are highlighted as a potential threat with wide-ranging implications, especially in supply chain management.

Customer Service and Satisfaction

Customer service is crucial for organizational success in supply chains.
Customer satisfaction arises from well-managed supply chain and marketing efforts.
Right product, at the right place, right condition, right price, and right time are essential for customer satisfaction and supply chain implementation.

Organizational Issues (i.e., Technology)

Technology significantly impacts various facets of businesses, especially supply chains.
Internet of Things (IoT), big data, cognitive analytics, cloud storage, and supply chain digitization are mentioned.
Mentioning of Drones, wearable technology, driverless vehicles, robotics, and 3-D printing.

Techniques for Evaluating Supply Chain

Tools for evaluating supply chains are necessary to ensure efficiency and proper functioning.
Techniques like the bullwhip effect, supplier analysis, and transportation mode analysis are useful for decision making.
Importance of coordination between supply chain elements.

Supplier Selection Analysis

Selecting suitable suppliers is critical to supply chain success, which involves considerations of financial performance, product quality, and delivery speed.

Transportation Mode Analysis

Evaluating the trade-off between holding/storage costs and shipping costs helps in transportation mode selection.
Considerations like cost, on-time delivery requirements, and compatibility with other logistics procedures are relevant factors affecting decisions.

Warehouse Storage

Large warehouses are part of the global supply chain.
Efficient placement of goods inside warehouses is important for efficiency and minimizing wasted travel time.

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Description

This quiz focuses on societal, business-related, and organizational issues that influence Supply Chain Management (SCM). Participants will explore the impact of logistics on Gross Domestic Product (GDP) and how current trends affect SCM processes. Understanding these factors is crucial for optimizing supply chain strategies.

Supply Chain Management Issues - Lesson 3

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