OMGT MIDTERM 1 STUDY GUIDE
1. Marketing - Answer -- Sales
- Advertising
- Sales promotion
- Market research
2. Operations - Answer -- Facilities
- Production
- Inventory control
- Quality assurance
- Purchasing
- Engineering
3. Finance - Answer -- Credits
- Disbursements
- Funds management
- Capital requirements
Support functions - Answer -- HR
- Information technology
- Administration
Operations - Answer --Transforms inputs into finished goods/services\
-Raw materials, supplies, facilities, capital, equipment
Operations Management - Answer -Planning, design, coordination and execution of
operations-related activities
Service - Answer -- Usually intangible and "consumed" right after serving
- High customer interaction
- Customized and cannot be stored for future use
Compared to producing goods, service is: - Answer -Labour intensive, knowledge
based, difficult to automate, difficult to measure service quality + productivity
Total productivity = - Answer -Output/Input
Supply chain - Answer -A network of facilities, functions, and activities involved in
producing and delivering products or services, from suppliers to customers
Supply chain management - Answer -(i) coordination of the movement of goods
through the supply chain, and (ii) control of information such as sales data, sales
forecasts, promotions, and inventory levels
, Logistics - Answer -Shipping and delivery: transportation cost, mode, lead time, traffic
management
Distribution Management - Answer -- Facility location (where/how many facilities?):
proximity to customers, business climate, quality of labour, infrastructure
- Positioning of inventory (where/how many to hold?)
Third-party logistics (3PL) - Answer -- Outsourcing freight consolidation and distribution
activities
- International business
Purchasing - Answer -Ordering and receiving materials: materials of correct quality, in
correct quantity, at good price, and on time
Purchasing cycle - Answer -1. Purchasing receives the requisition
2. Purchasing selects a supplier
3. Purchasing places the order with the vendor
4. Monitoring orders
5. Receiving orders
Develop a supplier base: - Answer -Select, evaluate & maintain
Sourcing - Answer -Selecting suppliers: Price, quality, services, location, inventory
policy, flexibility
Single sourcing (pros): - Answer -- Quantity discount
- More responsive
- Frequent deliveries
- High quality
- Better relations
- Support just-in-time
Single sourcing (cons): - Answer -- Not enough capacity
- Government regulations
Multiple Suppliers (pros): - Answer -- Competitive pricing
- Spreading risks
- Low dependence
- Volume flexibility
- Easier to test new supplier
Multiple Suppliers (cons): - Answer -- Order is too small
- High ordering cost
Bullwhip Effect - Answer -- Increasing distortion of information along the supply chain
- Customer demand gets distorted as information reaches suppliers
1. Marketing - Answer -- Sales
- Advertising
- Sales promotion
- Market research
2. Operations - Answer -- Facilities
- Production
- Inventory control
- Quality assurance
- Purchasing
- Engineering
3. Finance - Answer -- Credits
- Disbursements
- Funds management
- Capital requirements
Support functions - Answer -- HR
- Information technology
- Administration
Operations - Answer --Transforms inputs into finished goods/services\
-Raw materials, supplies, facilities, capital, equipment
Operations Management - Answer -Planning, design, coordination and execution of
operations-related activities
Service - Answer -- Usually intangible and "consumed" right after serving
- High customer interaction
- Customized and cannot be stored for future use
Compared to producing goods, service is: - Answer -Labour intensive, knowledge
based, difficult to automate, difficult to measure service quality + productivity
Total productivity = - Answer -Output/Input
Supply chain - Answer -A network of facilities, functions, and activities involved in
producing and delivering products or services, from suppliers to customers
Supply chain management - Answer -(i) coordination of the movement of goods
through the supply chain, and (ii) control of information such as sales data, sales
forecasts, promotions, and inventory levels
, Logistics - Answer -Shipping and delivery: transportation cost, mode, lead time, traffic
management
Distribution Management - Answer -- Facility location (where/how many facilities?):
proximity to customers, business climate, quality of labour, infrastructure
- Positioning of inventory (where/how many to hold?)
Third-party logistics (3PL) - Answer -- Outsourcing freight consolidation and distribution
activities
- International business
Purchasing - Answer -Ordering and receiving materials: materials of correct quality, in
correct quantity, at good price, and on time
Purchasing cycle - Answer -1. Purchasing receives the requisition
2. Purchasing selects a supplier
3. Purchasing places the order with the vendor
4. Monitoring orders
5. Receiving orders
Develop a supplier base: - Answer -Select, evaluate & maintain
Sourcing - Answer -Selecting suppliers: Price, quality, services, location, inventory
policy, flexibility
Single sourcing (pros): - Answer -- Quantity discount
- More responsive
- Frequent deliveries
- High quality
- Better relations
- Support just-in-time
Single sourcing (cons): - Answer -- Not enough capacity
- Government regulations
Multiple Suppliers (pros): - Answer -- Competitive pricing
- Spreading risks
- Low dependence
- Volume flexibility
- Easier to test new supplier
Multiple Suppliers (cons): - Answer -- Order is too small
- High ordering cost
Bullwhip Effect - Answer -- Increasing distortion of information along the supply chain
- Customer demand gets distorted as information reaches suppliers
