OMIS 340 FINAL EXAM QUESTIONS WITH COMPLETE SOLUTION

OMIS 340 FINAL EXAM QUESTIONS WITH COMPLETE SOLUTION "Sourcing Strategy Development - Correct Answer Determine strategic importance of category to buyer" "APICS Definition of a supply chain - Correct Answer The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash" "Customer Relationship Management (CRM) - Correct Answer Computer-based information systems designed to plan and manage the firm's external linkages with its customers" “Logistics - Correct Answer Planning, implementing, and controlling the effective flow and storage of goods and materials, services, and related information from the point of origin to the point of consumption" "Distribution and Delivery tend to focus on the ____ - Correct Answer downstream activities" "Logistic expenses are - Correct Answer Around 8% of GDP Second only to material costs in terms of their impact on cost of goods sold The largest costs in international commerce" "major transportation modes - Correct Answer Highway Water Rail Air" "Highway Mode Strengths - Correct Answer Can be available 24/7 Flexibility to pick up and deliver where and when needed Often the best balance between cost/flexibility and delivery reliability/speed" "Water Mode Weaknesses - Correct Answer Relatively poor delivery reliability/speed Often limited operating hours at docks Limited locations" "Rail Mode Strengths - Correct Answer Highly cost effective for bulky items Better delivery reliability/speed than water Can be most effective when linked into multimodal system" "Rail Mode Weaknesses - Correct Answer Slow Limited locations, but better than for water." "Air Mode Strengths - Correct Answer Quickest delivery over longer distances Can be very flexible when linked to highway mode Best for low weight-to-value ratio items" "Air Mode Weaknesses - Correct Answer Often the most expensive, particularly on a per pound basis" "Common Carriers - Correct Answer Published rates and schedules "Nondiscriminatory" pricing Increased flexibility to partner" "Contract/Private Carriers - Correct Answer Strategic pricing rates for shippers and carriers Specific services for customers" "Warehousing - Correct Answer Traditionally, the act of "storing" goods Any operation that stores, repackages, stages, sorts, or centralizes goods or materials" "Warehousing Economic Benefits - Correct Answer Reduce total system costs Accrue directly to company Designed to exploit economies of scale in transportation They have little or no long-term storage" "Warehousing Service Benefits - Correct Answer Support customer service needs May or may not reduce costs Postponement-For flexibility Spot-stock -For time and flexibility Assortment-For time and flexibility" "Types of warehousing economic benefits - Correct Answer Consolidation Cross-docking Hub-and-spoke systems" "Consolidation - Correct Answer Small shipments come into warehouse and large economic shipments come out" "Cross-Docking - Correct Answer Large economical shipments come into warehouse and small shipments come out" "Break-Bulk - Correct Answer A specialized form of cross-docking in which the incoming shipments are from a single source" "Hub and Spoke Systems - Correct Answer All traffic moves along spokes connected to the hub at the center Can cover wide destinations efficiently with the fewest routes Better truck utilization rates" "Postponement - Correct Answer Classic warehouse operations + light manufacturing and packaging duties Enhancing flexibility and minimize risk/inventory" "Spot Stock - Correct Answer Reduce Time to the customer, not the time to the warehouse Attempt to position time sensitive, seasonal items to the market place Often temporary, public storage" "Assortment - Correct Answer Close to the source of demand in order to assure short customer lead time Carry a wider array of goods than spot stock warehouses and for a longer period (i.e. year-round) Broad product line and good inventory control are key to success" "Weighted Center of Gravity - Correct Answer A method to determine best location for central warehouse from n demand points." "Purchasing - Correct Answer The acquisition of products or services" "Outsourcing - Correct Answer The transfer of processes that the organization could do to external partners You have to monitor your partner's processes" "Procurement - Correct Answer Strategic (not transactional) Process Identify needs and requirements Research suppliers Supplier evaluation Negotiation Build and manage supplier relationships Perform cost savings and profit margin analysis" "Category - Correct Answer A specific family of products or services that are used in delivering similar value to the end customer" "Category Management - Correct Answer Enhancing information and understanding for particular categories Centralizes the purchasing administration Supporting higher level strategies and meeting internal customer needs Focusing on long-term value creation with suppliers and stakeholders Building up strategic partnerships with suppliers" "Conducting a Spend Analysis - Correct Answer Get some baseline data to start with for future category strategy development" "The Category Strategy Process - Correct Answer 1. Build the team 2. Market Research 3. Sourcing Strategy Development 4. Contract Negotiation 5. SRM" "Build the Category Management Team - Correct Answer Assign knowledgeable project leader Consider stakeholder needs and engage them as part of team Identify key people and subject matter experts Cross functional team Develop work and communication plan Set up goal/scope of your projects Use the spend analysis results to set up more specific goals" "Highway Mode Weaknesses - Correct Answer Not the fastest Not the cheapest" "Water Mode Strengths - Correct Answer Most effective when linked into multimodal system Highly cost effective for bulky items" "Conduct Market Research on Suppliers - Correct Answer Research supply marketplace Interviews with stakeholders for forecasts External market research on Triangulation - explore, compare, and contrast data from multiple sources" "Contract Negotiation - Correct Answer Develop negotiation plans and ideal contracts for selected suppliers Create contingency plan Conduct negotiation Sign contract Establishing tasks and time lines Report contract to all stakeholders" "Supplier Relationship Management - Correct Answer Continuous monitoring of supplier's performance using predetermined criteria on goals and objectives Supplier scorecard Update, usually quarterly Review results with supplier over price, quality, delivery reliability, and responsiveness" "Portfolio Analysis - Correct Answer " "Routine Category - Correct Answer Low value, low volume, small individual transactions Many alternative products and services Many sources of supply Everyday use, unspecified items Anyone could buy it" "Leverage Category - Correct Answer High expenditures Many alternative products and services Many qualified sources of supply Market /price sensitive Commodity items Preferred suppliers" "Leverage Category STA - Correct Answer Strategy-Maximize commercial advantage Tactics-A limited number of suppliers-Concentrate business with multiyear agreement Actions-Promote competitive bidding-Request other services (e.g., VMI, responsiveness..)" "Bottleneck Category - Correct Answer May not have the big profit impact Complex specifications requiring complex manufacturing or service process-New technology or untested processes Few alternate productions/sources of supply : Niche suppliers Ensure supply search for alternatives" "Bottleneck Category STA - Correct Answer Strategy-Ensure supply continuity Tactics-Decrease uniqueness of suppliers-Widening the specifications to allow more supply options Actions-Develop new suppliers-Increase competition by encouraging other suppliers to offer the product/service-Medium-term contracts" "Critical Category - Correct Answer Critical to profitability and operations-Large expenditures Complex and/or rigid specifications-Design and quality critical Few qualified sources of supply Strategic partners" "Analytic Hierarchy Process (AHP) - Correct Answer Comparing many decision alternatives Selecting the alternative that best meets multiple criteria Developing a numerical score to rank each decision alternative based on how well the alternative meets the decision maker's criteria." "The Intelligent Supply Chains - Correct Answer Buy Make Move Sell" "Buy (or source) - Correct Answer Granular Analysis on Sourcing Options: Spend Analysis Segmenting Suppliers based on quality, responsiveness, cost, innovation rate, etc. Integrate suppliers into data system Better negotiation with suppliers" "Make - Correct Answer Decision for new facility location Forecasting demand Aggregate Planning Production Planning (MPS/MRP) Inventory Management Optimization of stock levels Productivity evaluation Quality management Labor optimization More frequent, immediate, and granular analysis!" "Move (or logistics) - Correct Answer Minimizing transportation costs Routing and scheduling: -UPS's GPS enabled route optimization -Tracking weather, disruptive events, driver behavior.. -Selection of transportation alternatives Optimizing inventory Vehicle maintenance with customized schedules" "Sell (or marketing) - Correct Answer Micro-segmentation of customers -Gather data on behavior and socio-economic status of customers Customized ads Price optimization" "Enterprise Resource Planning (ERP) - Correct Answer Pulls together all of the classic business functions into a single, tightly integrated package that uses a common database. Large, integrated computer-based business transaction processing, routine-decision making, and reporting systems. Captures data to support higher-level decision support systems (DSS)" "Decision Support System (DSS) - Correct Answer Computer-based information systems that allow users to analyze, simulate, manipulate, and present data in a manner that aids higher-level decision making" "Supplier Relationship Management (SRM) - Correct Answer Computer-based information systems designed to plan and manage the firm's external linkages with its suppliers." "Network Design Applications - Correct Answer Logistics information systems that address such long-term strategic questions such as facility location, size, and transportation networks" "Warehouse and transportation planning systems - Correct Answer Logistics information systems that support tactical planning efforts by allocating "fixed" logistics capacity in the best possible way, given business requirements" "Warehouse Management and transportation execution systems - Correct Answer Logistics information systems that initiate and control the movement of materials between supply chain partners" "SAP (Systems, Applications, and Products) - Correct Answer Global supply chain master Digital supply chain solution through cloud-based deployment" "Oracle - Correct Answer The biggest competitor of SAP Oracle Database In-Memory" "JDA - Correct Answer Specialized in optimizing Manufacturing logistics (3PL or third party logistics) Warehouse management" "SAS - Correct Answer Sophisticated statistical tools and techniques to support higher-level planning (i.e. DSS)" "R and Python - Correct Answer More affordable than SAS or SAP R: widely used by researchers, powerful statistics-related functions Python: More general purpose, easy to understand syntax, better capability for web-applications Need programming" "POS Data (point of sales) - Correct Answer Capture data from stores and other selling channels in real time Information on quantity, location, price, discounts, coupons being used Coupled with customer profiles Used for optimally deploying inventory" "RFID (radio frequency identification) - Correct Answer Getting less expensive & faster Checking production progress Making sure proper delivery Read pallets in a warehouse Movement of goods within store" "Cloud Computing - Correct Answer Deliver computing power to customers at lower and lower price Providers will enjoy economies of scale with more customers SAP's major direction Practically unlimited computing resources No long-term commitments Pay-as-you-go cost structure" "Block Chains - Correct Answer Making rewriting of data to the history is extremely expensive (or almost impossible) You now trust the (transaction) data recorded in the blockchain-data structure SC visibility and traceability Strengthen the trust level of a SC with smart contracts" "MM Organizational Structure - Correct Answer Client- An independent environment in the system Company Code- Smallest org unit for which you can maintain a legal set of books Plant (or something else)- Operating area or branch within a company-Manufacturing, distribution, purchasing or maintenance facility Storage Location- An organizational unit allowing differentiation between the various stocks of a material in a plant" "Purchasing Organization - Correct Answer The buying activity for a plant takes place at the purchasing organization" "Purchasing group - Correct Answer Represents the buyer or group of buyers who are responsible for certain purchasing activities Channel of communication for vendors" "Vendor Master - Correct Answer Contains all the necessary information needed to business with an external supplier Used and maintained primarily by the Purchasing and Accounting Departments Every vendor MUST have a master record" "Material Master - Correct Answer Contains all the information a company needs to manage about a material" "Purchasing Information Record - Correct Answer Serves as default information for Purchase Orders Can be used for spend analysis and supplier performance evaluation" "purchase requisition - Correct Answer Internal Document instructing the purchasing department to request a specific good or service for a specified time" "Vendor Evaluation - Correct Answer Evaluates vendors for sourcing while also enabling the company to monitor vendor relationships through performance scores and criteria you put in place" "Purchase Order - Correct Answer a formal request to a vendor for a specific material or service under the stated conditions" "Goods Receipt - Correct Answer Goods movement in which we accept goods into our system" "Effects of a Goods Receipt - Correct Answer Material Document is Created Stock Quantities are Updated Accounting Document is Created Stock Values are Updated Purchase Order is Updated" "Spend Analysis Spreadsheet - Correct Answer 1. Sort data by category 2. Find total spend by category 3. Chart top 10 by descending $ spend 4. Find number of suppliers by category 5. Chart top 10 by descending number of suppliers 6. Find average spend per supplier by category" "Routine Category STA - Correct Answer Strategy-Simplify acquisition process Tactics-Reduce buying effort-Reduce # of suppliers-Increase role of electronic tools or IT systems Actions-Price based competition among a couple of suppliers-Minimize administrative costs-Automate requisitioning, e.g., EDI, credit cards, online vendor catalog" "Critical Category STA - Correct Answer Strategy-Form a long-term partnership with suppliers Tactics-Increase the interdependency between suppliers and buyers-Sharing resources and information Actions-Analyze market/competition/supplier capabilities to find the best partners-Heavy negotiation-Prepare contingency plans" "