MGT 301 CSU EXAM 1 ACCURATE STUDY GUIDE
Supply Chain - Answers - consists of the flow of products and services from:
-Raw materials manufacturers
-Component and intermediate manufacturers
-Final product manufacturers
-Wholesalers and distributors
-Retailers
Why use supply chain management - Answers - -Cost savings
-Better coordination of resources
Goal of sourcing - Answers - To ensure the reliable supply of materials and services to
the firm at the lowest total cost
Goal of operations - Answers - The effective and efficient transformation of these
materials and services into products
Goal of logistics - Answers - the effective and efficient flow and storage of these goods
& services
Reduce cost in supply chain by: - Answers - -Reduced purchasing costs
-Reducing waste
-Reducing excess inventory
-Reducing non-value added activities
Old paradigm - Answers - vertical integration- owning the entire supply chain
Problem: limits the company ex. Ford built a black model T but couldn't explore other
options because of the money tied up in resources
New paradigm - Answers - horizontal integration- specialization
create partnerships to get better quality and better price (but you give up control)
Important elements of SCM - Answers - -Integration trends
-Purchasing trends
-Operations trends
-Distribution trends
Companies must accurately forecast demand to: - Answers - Produce & deliver the right
quantities
To satisfy customers
To optimize costs
Qualitative forecasts - Answers - based on opinion and intuition
Supply Chain - Answers - consists of the flow of products and services from:
-Raw materials manufacturers
-Component and intermediate manufacturers
-Final product manufacturers
-Wholesalers and distributors
-Retailers
Why use supply chain management - Answers - -Cost savings
-Better coordination of resources
Goal of sourcing - Answers - To ensure the reliable supply of materials and services to
the firm at the lowest total cost
Goal of operations - Answers - The effective and efficient transformation of these
materials and services into products
Goal of logistics - Answers - the effective and efficient flow and storage of these goods
& services
Reduce cost in supply chain by: - Answers - -Reduced purchasing costs
-Reducing waste
-Reducing excess inventory
-Reducing non-value added activities
Old paradigm - Answers - vertical integration- owning the entire supply chain
Problem: limits the company ex. Ford built a black model T but couldn't explore other
options because of the money tied up in resources
New paradigm - Answers - horizontal integration- specialization
create partnerships to get better quality and better price (but you give up control)
Important elements of SCM - Answers - -Integration trends
-Purchasing trends
-Operations trends
-Distribution trends
Companies must accurately forecast demand to: - Answers - Produce & deliver the right
quantities
To satisfy customers
To optimize costs
Qualitative forecasts - Answers - based on opinion and intuition
