SCM 300 Module 6 Exam 2
Recap of supply chain basics - CORRECT ANSWER-Focus on People,
Competitive Priorities, Measuring Success, Maximizing Value, Productivity
Bullwhip effect - CORRECT ANSWER-very high and very low supply levels
4 causes of bullwhip effect - CORRECT ANSWER-1. Poor forecasting, Poor
analysis, Poor communication
2. Order Batching - Trying to place large orders
3. Price Fluctuations - Promotions, Quantity discounts, Special pricing/payment
options...Can cause batching
4. Rationing - Demand higher than supply. Promotes rationing on part of
"distributor". "Retailers" may get less than ordered.
5. Shortage Gaming - Retailers inflate order sizes to counteract rationing
5 methods for controlling the bullwhip effect - CORRECT ANSWER-everyday low
pricing, vendor management inventory systems, information sharing, develop
strong buyer-supplier relationships, and practicing lean manufacturing
Rocks and water analogy - CORRECT ANSWER-Rocks are the problem
(Capacity levels, inventory)
Water is the service/supplier
Boat is unable to get through if water shrinks, due to rocks
Lean manufacturing - CORRECT ANSWER-goals: to minimize inventory
(inventory is bad) and to eliminate all types of waste: quality control
Keys to Lean manufacturing - CORRECT ANSWER-High Performance Quality,
Consistent Quality, Quality at the Source, Continuous Improvement,
Poka-yoke(mistake proofing), Closer supplier ties, Small Lot Sizes, Standardized
components and work methods, Dedication to the workforce
front-end - CORRECT ANSWER-visible to customer
back-end - CORRECT ANSWER-not visible to costumer
, upstream - CORRECT ANSWER-in the direction towards the supplier
downstream - CORRECT ANSWER-in the direction towards the customer
obstacles of integration - CORRECT ANSWER-Poor communication, an
unwillingness to share, and/or lack of trust between supply chain partners
importance of supply chain integration - CORRECT ANSWER-The only way for
supply chain partners to achieve efffectiveness, efficiency, and adaptability
supply chain basics - CORRECT ANSWER-Focus on People, Competitive
Priorities, Measuring Success, Maximizing Value, Productivity
square root rule - risk pooling - CORRECT ANSWER-(square root of warehouses
planned)
divided by
(square root of present # of warehouses)
times
(stock in the present warehouse)
postponement - CORRECT ANSWER-a combination of push and pull system.
Delay the final assembly of the end Item.
Allows some degree of customization and standardization. Speed and
Customization
push system - CORRECT ANSWER-Inventory is "pushed toward the consumer
in anticipation of consumer demand
pull system - CORRECT ANSWER-System that is activated by consumer
demand as a result a supply chain will not make and store finished goods
inventory until someone wants something
Push system PROS and CONS - CORRECT ANSWER-Pros - high inventories,
low ordering costs, less likely to run out of product, shorter lead times, mistakes
and defects tolerable
Recap of supply chain basics - CORRECT ANSWER-Focus on People,
Competitive Priorities, Measuring Success, Maximizing Value, Productivity
Bullwhip effect - CORRECT ANSWER-very high and very low supply levels
4 causes of bullwhip effect - CORRECT ANSWER-1. Poor forecasting, Poor
analysis, Poor communication
2. Order Batching - Trying to place large orders
3. Price Fluctuations - Promotions, Quantity discounts, Special pricing/payment
options...Can cause batching
4. Rationing - Demand higher than supply. Promotes rationing on part of
"distributor". "Retailers" may get less than ordered.
5. Shortage Gaming - Retailers inflate order sizes to counteract rationing
5 methods for controlling the bullwhip effect - CORRECT ANSWER-everyday low
pricing, vendor management inventory systems, information sharing, develop
strong buyer-supplier relationships, and practicing lean manufacturing
Rocks and water analogy - CORRECT ANSWER-Rocks are the problem
(Capacity levels, inventory)
Water is the service/supplier
Boat is unable to get through if water shrinks, due to rocks
Lean manufacturing - CORRECT ANSWER-goals: to minimize inventory
(inventory is bad) and to eliminate all types of waste: quality control
Keys to Lean manufacturing - CORRECT ANSWER-High Performance Quality,
Consistent Quality, Quality at the Source, Continuous Improvement,
Poka-yoke(mistake proofing), Closer supplier ties, Small Lot Sizes, Standardized
components and work methods, Dedication to the workforce
front-end - CORRECT ANSWER-visible to customer
back-end - CORRECT ANSWER-not visible to costumer
, upstream - CORRECT ANSWER-in the direction towards the supplier
downstream - CORRECT ANSWER-in the direction towards the customer
obstacles of integration - CORRECT ANSWER-Poor communication, an
unwillingness to share, and/or lack of trust between supply chain partners
importance of supply chain integration - CORRECT ANSWER-The only way for
supply chain partners to achieve efffectiveness, efficiency, and adaptability
supply chain basics - CORRECT ANSWER-Focus on People, Competitive
Priorities, Measuring Success, Maximizing Value, Productivity
square root rule - risk pooling - CORRECT ANSWER-(square root of warehouses
planned)
divided by
(square root of present # of warehouses)
times
(stock in the present warehouse)
postponement - CORRECT ANSWER-a combination of push and pull system.
Delay the final assembly of the end Item.
Allows some degree of customization and standardization. Speed and
Customization
push system - CORRECT ANSWER-Inventory is "pushed toward the consumer
in anticipation of consumer demand
pull system - CORRECT ANSWER-System that is activated by consumer
demand as a result a supply chain will not make and store finished goods
inventory until someone wants something
Push system PROS and CONS - CORRECT ANSWER-Pros - high inventories,
low ordering costs, less likely to run out of product, shorter lead times, mistakes
and defects tolerable
