Supply Chain Management Overview
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Questions and Answers

What is one reason a company might choose to manufacture antifreeze at a steady rate all year?

  • To avoid building excessive inventory
  • To minimize production costs
  • To increase the production rate during summer
  • To ensure they can meet high demand during winter (correct)

    • Which approach in warehousing involves managing a specific type of product?

  • Inventory management
  • Sku storage (correct)
  • Flexible manufacturing
  • Demand forecasting

    • When considering production and storage locations, which aspect is primarily evaluated?

  • Cost efficiency (correct)
  • Brand image
  • Employee satisfaction
  • Environmental impact

    • What is one alternative to building up seasonal inventory?

    <p>Investing in flexible manufacturing facilities</p> Signup and view all the answers

    Which of the following is NOT a purpose in a supply chain location decision?

    <p>Reducing employee turnover</p> Signup and view all the answers

    How do companies in a supply chain make decisions regarding product flow?

    <p>Utilizing available supply and demand data</p> Signup and view all the answers

    What factor influences the plant capacities in production scheduling?

    <p>Quality control procedures</p> Signup and view all the answers

    What does the term 'supply chain management' refer to?

    <p>The alignment of firms that deliver products or services to market.</p> Signup and view all the answers

    What storage approach requires more space but allows for efficient picking and packing?

    <p>Job lot storage</p> Signup and view all the answers

    What might be a disadvantage of inflexible production rates?

    <p>They can lead to excess inventory</p> Signup and view all the answers

    Which transport mode is characterized by being cost-efficient but the slowest?

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

    Which method pioneered by Wal Mart eliminates the need for warehousing in the supply chain?

    <p>Cross docking</p> Signup and view all the answers

    What is the main trade-off in transportation within a supply chain?

    <p>Responsiveness and efficiency</p> Signup and view all the answers

    What is a key characteristic of a supply chain?

    <p>It includes all stages involved in fulfilling a customer request.</p> Signup and view all the answers

    Which of the following best describes a job lot storage strategy?

    <p>Grouping various products for a particular customer need.</p> Signup and view all the answers

    Which of the following transport modes is NOT restricted to specific types of products?

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

    Which participants in the supply chain are known as the final consumers of a product?

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

    Which of these statements about supply chain management is false?

    <p>It refers only to the movement of goods.</p> Signup and view all the answers

    What is a fundamental economic concept related to supply?

    <p>Availability of a specific good or service</p> Signup and view all the answers

    Which mode of transportation is limited to waterways?

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

    What does effective supply chain management primarily aim to achieve?

    <p>Coordination and administration of tasks to fulfill goals.</p> Signup and view all the answers

    What role does forecasting play in the supply chain?

    <p>To anticipate and meet future demands</p> Signup and view all the answers

    Which mode of transportation is efficient but limited to transporting liquids or gases?

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

    Strategic forecasts in a supply chain are primarily used for which of the following decisions?

    <p>Guiding facility location decisions</p> Signup and view all the answers

    What primary function do distributors serve for customers?

    <p>They deliver products when and where customers want them.</p> Signup and view all the answers

    What is the main expectation of customers at a fashion boutique compared to those at a big box discount store?

    <p>A narrowly defined group of types of products at the fashion boutique.</p> Signup and view all the answers

    Which of the following roles can a distributor NOT perform?

    <p>Manufacturing goods from raw materials.</p> Signup and view all the answers

    Which of the following is not a factor influencing customer expectations regarding supply?

    <p>The aesthetic appeal of products.</p> Signup and view all the answers

    What type of service is primarily provided by financial service providers in the context of distribution?

    <p>Loaning money and analyzing credit.</p> Signup and view all the answers

    What is the purpose of value chain analysis?

    <p>To identify sources of competitive advantage.</p> Signup and view all the answers

    Which type of distributor never takes ownership of the products?

    <p>A service provider distributor.</p> Signup and view all the answers

    What is one of the functions of logistics providers?

    <p>Providing transportation and warehousing services.</p> Signup and view all the answers

    What step is first in aligning the supply chain with business strategy?

    <p>Understand the requirements of your customers.</p> Signup and view all the answers

    Which of the following is NOT a typical responsibility of a distributor?

    <p>Manufacturing products for sale.</p> Signup and view all the answers

    How do customers typically respond when a music store does not have the CD they seek?

    <p>They will go elsewhere.</p> Signup and view all the answers

    How do distributors contribute to customer support?

    <p>By delivering after-sale services.</p> Signup and view all the answers

    Which of the following best describes inbound logistics in the primary activities of a value chain?

    <p>Receiving and warehousing raw materials.</p> Signup and view all the answers

    What is a key advantage distributors have over producers and retailers?

    <p>They manage larger inventories.</p> Signup and view all the answers

    What is implied about customers' expectations for innovation in products like electronics?

    <p>They expect a high rate of innovation.</p> Signup and view all the answers

    What best describes outbound logistics in a value chain?

    <p>Distribution of finished goods to customers.</p> Signup and view all the answers

    Study Notes

    Supply Chain Management Overview

    • Emerged as a term in the late 1980s; gained popularity in the 1990s.
    • Previously referred to as "logistics" and "operations management."
    • Defined as the alignment of firms that deliver products or services to the market.
    • Involves all stages of fulfilling customer requests, directly or indirectly.

    Supply and Demand Concepts

    • Supply is the total amount of a good or service available to consumers.
    • Companies forecast market demand to determine production rates and inventory requirements.
    • Predictable spikes in demand (e.g., antifreeze in winter) influence production strategies.

    Warehousing Approaches

    • SKU Storage (Stock Keeping Unit)

      • Traditional method where products of the same type are stored together for easy access.

    • Job Lot Storage

      • Similar products grouped for specific customer needs, allowing efficient picking but requires more space.

    • Cross Docking

      • Pioneered by Walmart; products are not stored but quickly processed and redistributed based on demand.

    Facility Location Decisions

    • Key considerations include cost efficiency for production and inventory storage.
    • Decisions on utilizing existing facilities versus building new ones impact distribution paths.

    Transportation Mode Trade-offs

    • Ship: Cost-efficient but slow; limited to waterways.
    • Rail: Cost-effective and can be slow; limited to rail-served locations.
    • Pipelines: Efficient for liquids/gases; limited in commodity type.
    • Trucks: Flexible; deliver products to customers, fulfilling time and place functions.

    Participants in the Supply Chain

    • Key roles include producers, distributors, retailers, and ultimate consumers.
    • Distributors manage inventory, promote products, and handle logistics operations.

    Types of Value Chain

    • Manufacturing-Based: Focuses on production capabilities.
    • Service-Based: Emphasizes service provision.
    • Can be a combination of both.

    Value Chain Analysis Purpose

    • Identifies sources of competitive advantage.
    • Seeks opportunities for cost reduction and product differentiation.

    Steps to Align Supply Chain with Business Strategy

    • Understand customer requirements to inform supply chain decisions.
    • Define core competencies and the strategic roles of the company.
    • Develop capabilities in the supply chain that support chosen roles.

    Primary Supply Chain Activities

    • Inbound Logistics: Receiving, warehousing, and distributing raw materials.
    • Operations: Transforming inputs into finished products/services.
    • Outbound Logistics: Warehousing finished goods and distributing to customers.

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    Description

    This quiz covers the basics of supply chain management, including its history and different storage methods such as job lot storage. Gain insights into efficient product storage techniques and the evolution of this critical field since the late 1980s.

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