OM 300 EXAM 3 CHILCUTT
CORRECT 100%
Supply Chain Management - ANSWERto structure the supply chain to maximize its
competitive advantage and benefits to the ultimate consumer
data, deliverables, durables, dollars - ANSWERwhat are the 4 components of a
supply chain:
1. The coordination of all supply chain activities, starting with raw materials and
ending with a satisfied customer
2. Includes suppliers, manufacturers and/or service providers, distributors,
wholesalers, retailers, and final customers - ANSWERExplain the strategic
importance of the supply chain. (2 things)
1. Many suppliers
2. Few suppliers
3. Vertical integration
4. Joint ventures
5. Keiretsu networks
6. Virtual companies - ANSWERWhat are the 6 sourcing strategies:
many suppliers - ANSWERtype of souring strategy that is commonly used to
COMMODITY products (ex: oil, gold, base metals); purchasing is typically based on
PRICE; suppliers compete with one another
few suppliers - ANSWERtype of sourcing strategy where buyer forms LONGER
TERM relationship with fewer suppliers; create VALUE through economies of scale;
cost of changing suppliers is HUGE
vertical integration - ANSWERtype of sourcing strategy typically more common in
risky industries developing the ability to product goods or services previously
purchased
vertical - ANSWER____________ integration can be forward or backward
joint ventures - ANSWERwhich sourcing strategy is this:
formal collaboration (enhance skills, secure supply, and reduce costs)
joint ventures - ANSWERthe challenge of _______ ________ is cooperation without
diluting brand or conceding competitive advantage
keiretsu networks - ANSWERtype of sourcing strategy that acts as a middle group
between few suppliers and vertical integration; supplier becomes part of the
company COALITION
, keiretsu - ANSWERin _________ networks, members expect long-term relationships
and provide technical expertise and stable deliveries
virtual companies - ANSWERtype of sourcing strategy that relies on a variety of
supplier relationships to provide SERVICES ON DEMAND (relationships may be
short or long term)
1. More reliance on supply chains means more risk
2. Fewer suppliers increase dependence3. Compounded by globalization and
logistical complexity
4. Vendor reliability and quality risks
5. Political and currency risks - ANSWERsupply chain risks (5 things):
1. accurate pull data (shared information)
2. lot size reduction (shipping, discounts, reduced ordering costs)
3. blanket orders against which actual orders are released
4. single supply chain member responsible for ordering
5. vendor managed inventory (VMI) - ANSWERwhat are the 5 opportunities for
managing the integrated supply chain?
inventory management - ANSWERto strike a balance between inventory investment
and customer service
1. provide a selection of goods for anticipated demand and to separate the firm from
fluctuations in demand
2. decouple or separate various parts of the production process
3. take advantage of quantity discounts
4. hedge against inflation - ANSWERwhat are the 4 functions of inventory?
1. raw material
2. work in progress (WIP)
3. maintenance/repair/operating (MRO)
4. finished goods - ANSWERwhat are the 4 types of inventory?
1. local optimization can magnify fluctuations
2. incentives push merchandise into the supply chain for sales that have not occured
3. large lots reduce shipping/production costs but increase inventory holding and do
not r4eflect actual sales - ANSWERwhat are the 3 ISSUES for managing the
integrated supply chain?
bullwhip effect - ANSWERthe tendency for larger order size fluctuations as orders
are relayed through the supply chain
coordination; planning - ANSWERdamage from the bullwhip effect can be managed
with SUPPLIER ___________ and _________
1. point of origin
2. warehousing
3. transit
CORRECT 100%
Supply Chain Management - ANSWERto structure the supply chain to maximize its
competitive advantage and benefits to the ultimate consumer
data, deliverables, durables, dollars - ANSWERwhat are the 4 components of a
supply chain:
1. The coordination of all supply chain activities, starting with raw materials and
ending with a satisfied customer
2. Includes suppliers, manufacturers and/or service providers, distributors,
wholesalers, retailers, and final customers - ANSWERExplain the strategic
importance of the supply chain. (2 things)
1. Many suppliers
2. Few suppliers
3. Vertical integration
4. Joint ventures
5. Keiretsu networks
6. Virtual companies - ANSWERWhat are the 6 sourcing strategies:
many suppliers - ANSWERtype of souring strategy that is commonly used to
COMMODITY products (ex: oil, gold, base metals); purchasing is typically based on
PRICE; suppliers compete with one another
few suppliers - ANSWERtype of sourcing strategy where buyer forms LONGER
TERM relationship with fewer suppliers; create VALUE through economies of scale;
cost of changing suppliers is HUGE
vertical integration - ANSWERtype of sourcing strategy typically more common in
risky industries developing the ability to product goods or services previously
purchased
vertical - ANSWER____________ integration can be forward or backward
joint ventures - ANSWERwhich sourcing strategy is this:
formal collaboration (enhance skills, secure supply, and reduce costs)
joint ventures - ANSWERthe challenge of _______ ________ is cooperation without
diluting brand or conceding competitive advantage
keiretsu networks - ANSWERtype of sourcing strategy that acts as a middle group
between few suppliers and vertical integration; supplier becomes part of the
company COALITION
, keiretsu - ANSWERin _________ networks, members expect long-term relationships
and provide technical expertise and stable deliveries
virtual companies - ANSWERtype of sourcing strategy that relies on a variety of
supplier relationships to provide SERVICES ON DEMAND (relationships may be
short or long term)
1. More reliance on supply chains means more risk
2. Fewer suppliers increase dependence3. Compounded by globalization and
logistical complexity
4. Vendor reliability and quality risks
5. Political and currency risks - ANSWERsupply chain risks (5 things):
1. accurate pull data (shared information)
2. lot size reduction (shipping, discounts, reduced ordering costs)
3. blanket orders against which actual orders are released
4. single supply chain member responsible for ordering
5. vendor managed inventory (VMI) - ANSWERwhat are the 5 opportunities for
managing the integrated supply chain?
inventory management - ANSWERto strike a balance between inventory investment
and customer service
1. provide a selection of goods for anticipated demand and to separate the firm from
fluctuations in demand
2. decouple or separate various parts of the production process
3. take advantage of quantity discounts
4. hedge against inflation - ANSWERwhat are the 4 functions of inventory?
1. raw material
2. work in progress (WIP)
3. maintenance/repair/operating (MRO)
4. finished goods - ANSWERwhat are the 4 types of inventory?
1. local optimization can magnify fluctuations
2. incentives push merchandise into the supply chain for sales that have not occured
3. large lots reduce shipping/production costs but increase inventory holding and do
not r4eflect actual sales - ANSWERwhat are the 3 ISSUES for managing the
integrated supply chain?
bullwhip effect - ANSWERthe tendency for larger order size fluctuations as orders
are relayed through the supply chain
coordination; planning - ANSWERdamage from the bullwhip effect can be managed
with SUPPLIER ___________ and _________
1. point of origin
2. warehousing
3. transit
