Podcast
Questions and Answers
What is one reason a company might choose to manufacture antifreeze at a steady rate all year?
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?
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?
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?
What is one alternative to building up seasonal inventory?
Which of the following is NOT a purpose in a supply chain location decision?
Which of the following is NOT a purpose in a supply chain location decision?
How do companies in a supply chain make decisions regarding product flow?
How do companies in a supply chain make decisions regarding product flow?
What factor influences the plant capacities in production scheduling?
What factor influences the plant capacities in production scheduling?
What does the term 'supply chain management' refer to?
What does the term 'supply chain management' refer to?
What storage approach requires more space but allows for efficient picking and packing?
What storage approach requires more space but allows for efficient picking and packing?
What might be a disadvantage of inflexible production rates?
What might be a disadvantage of inflexible production rates?
Which transport mode is characterized by being cost-efficient but the slowest?
Which transport mode is characterized by being cost-efficient but the slowest?
Which method pioneered by Wal Mart eliminates the need for warehousing in the supply chain?
Which method pioneered by Wal Mart eliminates the need for warehousing in the supply chain?
What is the main trade-off in transportation within a supply chain?
What is the main trade-off in transportation within a supply chain?
What is a key characteristic of a supply chain?
What is a key characteristic of a supply chain?
Which of the following best describes a job lot storage strategy?
Which of the following best describes a job lot storage strategy?
Which of the following transport modes is NOT restricted to specific types of products?
Which of the following transport modes is NOT restricted to specific types of products?
Which participants in the supply chain are known as the final consumers of a product?
Which participants in the supply chain are known as the final consumers of a product?
Which of these statements about supply chain management is false?
Which of these statements about supply chain management is false?
What is a fundamental economic concept related to supply?
What is a fundamental economic concept related to supply?
Which mode of transportation is limited to waterways?
Which mode of transportation is limited to waterways?
What does effective supply chain management primarily aim to achieve?
What does effective supply chain management primarily aim to achieve?
What role does forecasting play in the supply chain?
What role does forecasting play in the supply chain?
Which mode of transportation is efficient but limited to transporting liquids or gases?
Which mode of transportation is efficient but limited to transporting liquids or gases?
Strategic forecasts in a supply chain are primarily used for which of the following decisions?
Strategic forecasts in a supply chain are primarily used for which of the following decisions?
What primary function do distributors serve for customers?
What primary function do distributors serve for customers?
What is the main expectation of customers at a fashion boutique compared to those at a big box discount store?
What is the main expectation of customers at a fashion boutique compared to those at a big box discount store?
Which of the following roles can a distributor NOT perform?
Which of the following roles can a distributor NOT perform?
Which of the following is not a factor influencing customer expectations regarding supply?
Which of the following is not a factor influencing customer expectations regarding supply?
What type of service is primarily provided by financial service providers in the context of distribution?
What type of service is primarily provided by financial service providers in the context of distribution?
What is the purpose of value chain analysis?
What is the purpose of value chain analysis?
Which type of distributor never takes ownership of the products?
Which type of distributor never takes ownership of the products?
What is one of the functions of logistics providers?
What is one of the functions of logistics providers?
What step is first in aligning the supply chain with business strategy?
What step is first in aligning the supply chain with business strategy?
Which of the following is NOT a typical responsibility of a distributor?
Which of the following is NOT a typical responsibility of a distributor?
How do customers typically respond when a music store does not have the CD they seek?
How do customers typically respond when a music store does not have the CD they seek?
How do distributors contribute to customer support?
How do distributors contribute to customer support?
Which of the following best describes inbound logistics in the primary activities of a value chain?
Which of the following best describes inbound logistics in the primary activities of a value chain?
What is a key advantage distributors have over producers and retailers?
What is a key advantage distributors have over producers and retailers?
What is implied about customers' expectations for innovation in products like electronics?
What is implied about customers' expectations for innovation in products like electronics?
What best describes outbound logistics in a value chain?
What best describes outbound logistics in a value chain?
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.
