OPMA 317 final || 100% Errorless Answers.
Patterns from exercise correct answers fluctuation, amplification & time lag
What caused the problems correct answers 1. Lack of communication / cooperation
2. Long lead time (4 weeks)
What are the implications of supply chain structure correct answers - stock out at times
- excess inventory at times
- overtime costs
- layoffs/re-hiring costs
- expediting
Bullwhip effect correct answers information going back through the supply chain is distorted and
then amplified
How can we improve the supply chain? correct answers - Actual customer demand (IT)
- Forecasting
- Encourage cooperation / communication (incentives, VMI)
- shorten lead times (lower admin lead time, just-in-time production systems, geog close
suppliers)
On shoring correct answers Bringing suppliers into the nearby vicinity
Higher "control" of inventory = correct answers higher administration costs
kan ban correct answers a system for "fill the bin"; when a bin is empty of supplies a trigger is
sent to get it refilled
supply chain correct answers a process that procures raw materials, produce them into goods and
deliver them
complexities correct answers multiple stages of suppliers, locations, and physical distribution
Most difficult link in a humanitarian supply chain correct answers Distribution - infrastructure
damaged, coordination difficult
Ways to mitigate this correct answers - Pre-positioning resources (multiple warehouses)
Differences between commercial & humanitarian supply chains correct answers - Cost not as
critical as speed
- high inventory levels
- perishable items expire
- many stakeholders to coordinate with
- high visibility of performance
- job satisfaction
, Disaster management phases correct answers 1. Response
2. Recovery
3. Mitigation
4. Preparedness
value chain correct answers The only process that adds value to the chain
Closely related to eliminated processes that do not add value
reasons to globalize correct answers -improve supply chain
-produce better goods and services
-learn to improve your operations
-attract new markets
-attract and retain global talent
global facility location correct answers determines the location that best fits the company based
on critical success factors (CSF) to get best competitive advantage
Global facility location 4 steps correct answers 1)determine CSFs based on strategic objectives +
give them weights
2)research location-specific info on the CSFs
3)rate each location's ability to support each CSF
4)calculate each location's score: CSF ratings x location ratings
vertical integration correct answers how much (proportion) of supply chain that the company
owns
reasons to outsource to suppliers correct answers -lower costs
-less assets = better ROI
-more focus on strengths
-improve quality
-turns FC into VC
zara is an example of correct answers make instead of outsource; have control over manuf and
supply (short lead time), small batches of clothing (avoid out-of-season stock)
Procurement (purchasing) correct answers buying services/materials we choose not to develop
internally; is a large percentage of sales cost
large companies who offer "free consulting" to their vendors help them correct answers -reduce
costs
-improve quality
-ensure fast and consistent delivery
centralized purchasing correct answers buying supplies from one spot (then distributing if
needed); adv=purchasing power, dsv= reduced flexibility and speed
Patterns from exercise correct answers fluctuation, amplification & time lag
What caused the problems correct answers 1. Lack of communication / cooperation
2. Long lead time (4 weeks)
What are the implications of supply chain structure correct answers - stock out at times
- excess inventory at times
- overtime costs
- layoffs/re-hiring costs
- expediting
Bullwhip effect correct answers information going back through the supply chain is distorted and
then amplified
How can we improve the supply chain? correct answers - Actual customer demand (IT)
- Forecasting
- Encourage cooperation / communication (incentives, VMI)
- shorten lead times (lower admin lead time, just-in-time production systems, geog close
suppliers)
On shoring correct answers Bringing suppliers into the nearby vicinity
Higher "control" of inventory = correct answers higher administration costs
kan ban correct answers a system for "fill the bin"; when a bin is empty of supplies a trigger is
sent to get it refilled
supply chain correct answers a process that procures raw materials, produce them into goods and
deliver them
complexities correct answers multiple stages of suppliers, locations, and physical distribution
Most difficult link in a humanitarian supply chain correct answers Distribution - infrastructure
damaged, coordination difficult
Ways to mitigate this correct answers - Pre-positioning resources (multiple warehouses)
Differences between commercial & humanitarian supply chains correct answers - Cost not as
critical as speed
- high inventory levels
- perishable items expire
- many stakeholders to coordinate with
- high visibility of performance
- job satisfaction
, Disaster management phases correct answers 1. Response
2. Recovery
3. Mitigation
4. Preparedness
value chain correct answers The only process that adds value to the chain
Closely related to eliminated processes that do not add value
reasons to globalize correct answers -improve supply chain
-produce better goods and services
-learn to improve your operations
-attract new markets
-attract and retain global talent
global facility location correct answers determines the location that best fits the company based
on critical success factors (CSF) to get best competitive advantage
Global facility location 4 steps correct answers 1)determine CSFs based on strategic objectives +
give them weights
2)research location-specific info on the CSFs
3)rate each location's ability to support each CSF
4)calculate each location's score: CSF ratings x location ratings
vertical integration correct answers how much (proportion) of supply chain that the company
owns
reasons to outsource to suppliers correct answers -lower costs
-less assets = better ROI
-more focus on strengths
-improve quality
-turns FC into VC
zara is an example of correct answers make instead of outsource; have control over manuf and
supply (short lead time), small batches of clothing (avoid out-of-season stock)
Procurement (purchasing) correct answers buying services/materials we choose not to develop
internally; is a large percentage of sales cost
large companies who offer "free consulting" to their vendors help them correct answers -reduce
costs
-improve quality
-ensure fast and consistent delivery
centralized purchasing correct answers buying supplies from one spot (then distributing if
needed); adv=purchasing power, dsv= reduced flexibility and speed
