SCM 301 Iowa State University Exam 1
Questions & Answers
1.Supply Chain: consists of the flow of products and services from:
- Raw materials manufacturers
- Component and intermediate manufacturers - Final product
manufacturers
- Wholesalers and distributors and
- Retailers
Connected by transportation and storage activities, and integrated
through informa- tion, planning, and integration activities
2.Upstream Supply Chain beginning at the Focal firm: - Set of firms that
supply the raw materials (2nd tier), intermediate components
manufacturers (1st tier).
3.Downstream Supply Chain beginning at the Focal firm: - The portion of
the supply chain from the production facility to the end-customer.
Wholesalers (1st tier), Retailers (2nd tier), and the final customers.
4.Old Supply Chains: - wanted to own all components of their Supply
Chain
5.New Supply Chains: - diversify owners throughout the supply chain
6.In order for Supply Chains to be successful they must share
information like:: - Product specifications
- Production plans
,- Production changes
- New marketing strategies
- New technologies employed
- Purchasing plans
- Delivery dates
7.Firms using Supply Chain Management
(integration): 1) Start with key suppliers
2) Move on to other suppliers, customers, and shippers
3) Integrate second tier suppliers and customers
8.Second tier Suppliers: Supplier of the Supplier
9.Reducing the Bullwhip Effect will help : - help improve cost savings
and better coordination of resources
10.Bullwhip Effect is reduced by: - Collaborative planning, forecasting,
and re- plenishment activities.
- Which lead to better customer service, lower inventory costs,
improved quality, reduced cycle time, better production methods,
and more
11.Bullwhip Effect: - Small changes in customer demand ripple through
to create larger and larger changes as orders move through the supply
chain
12.Bullwhip Effect
Cause: Production schedules based on forecasts of wholesaler demand ver-
sus what consumer demand is: Solution:
- Make actual demand data available to suppliers
- Vendor-managed inventory (P&G does for Walmart)
, - Reduce the length of the Supply chain
- Reduce the lead times from order to delivery
13.Bullwhip Effect
Cause: Price Fluctuations: Solution:
- Eliminate price discounting, adopt Everyday low pricing (EDLP)
14.Bullwhip Effect
Cause: Periodic order policies at the wholesaler and manufacture levels: So-
lution:
- use frequent and smaller order sizes
15.Bullwhip Effect
Cause: Rationing/ Shortage gaming... trade deals offered by manufacturers t
wholesalers: Solution:
- allocate short supplies based on the demand histories of their custome
16.1950s-1960s: Mass Production to reduce prices
17.1960s-1970s: Introduction of new computer technologies lead to
development of Materials Requirements Planning (MRP) and
Manufacturing Resource Planning (MRPII) to coordinate inventory
management and improve internal communication
18.1980s & 1990s: Intense global competition led U.S. manufacturers
adopt:
- Supply Chain Management
- Just-In-Time Inventory (JIT)
- Total Quality Management (TQM)
- Business Process Reengineering (BPR) practices
19.Business Process Reengineering (BPR): A radical redesign of a
Questions & Answers
1.Supply Chain: consists of the flow of products and services from:
- Raw materials manufacturers
- Component and intermediate manufacturers - Final product
manufacturers
- Wholesalers and distributors and
- Retailers
Connected by transportation and storage activities, and integrated
through informa- tion, planning, and integration activities
2.Upstream Supply Chain beginning at the Focal firm: - Set of firms that
supply the raw materials (2nd tier), intermediate components
manufacturers (1st tier).
3.Downstream Supply Chain beginning at the Focal firm: - The portion of
the supply chain from the production facility to the end-customer.
Wholesalers (1st tier), Retailers (2nd tier), and the final customers.
4.Old Supply Chains: - wanted to own all components of their Supply
Chain
5.New Supply Chains: - diversify owners throughout the supply chain
6.In order for Supply Chains to be successful they must share
information like:: - Product specifications
- Production plans
,- Production changes
- New marketing strategies
- New technologies employed
- Purchasing plans
- Delivery dates
7.Firms using Supply Chain Management
(integration): 1) Start with key suppliers
2) Move on to other suppliers, customers, and shippers
3) Integrate second tier suppliers and customers
8.Second tier Suppliers: Supplier of the Supplier
9.Reducing the Bullwhip Effect will help : - help improve cost savings
and better coordination of resources
10.Bullwhip Effect is reduced by: - Collaborative planning, forecasting,
and re- plenishment activities.
- Which lead to better customer service, lower inventory costs,
improved quality, reduced cycle time, better production methods,
and more
11.Bullwhip Effect: - Small changes in customer demand ripple through
to create larger and larger changes as orders move through the supply
chain
12.Bullwhip Effect
Cause: Production schedules based on forecasts of wholesaler demand ver-
sus what consumer demand is: Solution:
- Make actual demand data available to suppliers
- Vendor-managed inventory (P&G does for Walmart)
, - Reduce the length of the Supply chain
- Reduce the lead times from order to delivery
13.Bullwhip Effect
Cause: Price Fluctuations: Solution:
- Eliminate price discounting, adopt Everyday low pricing (EDLP)
14.Bullwhip Effect
Cause: Periodic order policies at the wholesaler and manufacture levels: So-
lution:
- use frequent and smaller order sizes
15.Bullwhip Effect
Cause: Rationing/ Shortage gaming... trade deals offered by manufacturers t
wholesalers: Solution:
- allocate short supplies based on the demand histories of their custome
16.1950s-1960s: Mass Production to reduce prices
17.1960s-1970s: Introduction of new computer technologies lead to
development of Materials Requirements Planning (MRP) and
Manufacturing Resource Planning (MRPII) to coordinate inventory
management and improve internal communication
18.1980s & 1990s: Intense global competition led U.S. manufacturers
adopt:
- Supply Chain Management
- Just-In-Time Inventory (JIT)
- Total Quality Management (TQM)
- Business Process Reengineering (BPR) practices
19.Business Process Reengineering (BPR): A radical redesign of a
