MGT 4330 | THE SMART WAY TO PASS | REAL TESTS, REAL
RESULTS!
Supply Chain (3 points) - Answer: Key subsystem of a value chain that focuses on physical
movement of goods and materials
Supports information through the supply, production, and distribution processes
Coordinates the flow of materials, services, and information among the elements of the
supply chain to maximize customer value
Key Functions of Supply Chain - Answer: Purchasing and procurement of materials and
supplies
Sales and order processing
Operations
Inventory and materials management
Transportation and distribution
Information management
Finance
Customer service
Supply Chain Structure - Answer: Suppliers- raw material and component part inventory
Manufacturing plant- work-in-process and component part inventory
Regional Warehouse- finished goods inventory
Retail store- finished goods inventory
Customers
Supply Chain Management (SCM)- define/ goal to achieve
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
,Includes managing - Answer: Management of all activities that facilitate the fulfillment of a
customer order for manufactured goods
To achieve satisfied customers at a reasonable cost
Materials within supply chain
Flows of information and money that are necessary to coordinate activities within the
supply chain
Designing the Supply Chain - Answer: Strategic and operational perspectives are included
in supply chain design decisions
Contract manufacturer - Answer: Firm that specializes in certain types of goods-producing
activities
Customized design
Manufacturing
Assembly, and packaging
Works under contract for end users
Advantages of Using Contract Manufacturing - Answer: Access to advanced manufacturing
technologies
Faster product time-to-market
Customization of goods in regional markets
Lower total costs resulting from economies of scale
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
, Third-Party Logistics (3PL) Providers - Answer: Provide integrated services that might
include:
Packaging
Warehousing
Inventory management
Inbound or outbound transportation
Leverage business intelligence to create efficiencies and economies of scale in the supply
chain
Efficient supply chains - Answer: Designed for efficiency and low cost
By minimizing inventory and maximizing efficiencies in process flow
Responsive supply chains: - Answer: Flexibility and responsive service
Ability to react quickly to changing market demand and requirements
Push System - Answer: Produces goods in advance of customer demand
Uses a forecast of sales and moves them through the supply chain to points of sale where
they are stored as finished goods inventory
Pull System - Answer: Produces only what is needed at upstream stages in the supply chain
in response to customer demand signals from downstream stages
Push-pull boundary - Answer: Point in the supply chain that separates the push system
from the pull system
Postponement - Answer: Process of delaying product customization until the product is
closer to the customer at the end of the supply chain
APPHIA – Crafted with Care and Precision for Academic Excellence.
3
RESULTS!
Supply Chain (3 points) - Answer: Key subsystem of a value chain that focuses on physical
movement of goods and materials
Supports information through the supply, production, and distribution processes
Coordinates the flow of materials, services, and information among the elements of the
supply chain to maximize customer value
Key Functions of Supply Chain - Answer: Purchasing and procurement of materials and
supplies
Sales and order processing
Operations
Inventory and materials management
Transportation and distribution
Information management
Finance
Customer service
Supply Chain Structure - Answer: Suppliers- raw material and component part inventory
Manufacturing plant- work-in-process and component part inventory
Regional Warehouse- finished goods inventory
Retail store- finished goods inventory
Customers
Supply Chain Management (SCM)- define/ goal to achieve
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
,Includes managing - Answer: Management of all activities that facilitate the fulfillment of a
customer order for manufactured goods
To achieve satisfied customers at a reasonable cost
Materials within supply chain
Flows of information and money that are necessary to coordinate activities within the
supply chain
Designing the Supply Chain - Answer: Strategic and operational perspectives are included
in supply chain design decisions
Contract manufacturer - Answer: Firm that specializes in certain types of goods-producing
activities
Customized design
Manufacturing
Assembly, and packaging
Works under contract for end users
Advantages of Using Contract Manufacturing - Answer: Access to advanced manufacturing
technologies
Faster product time-to-market
Customization of goods in regional markets
Lower total costs resulting from economies of scale
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
, Third-Party Logistics (3PL) Providers - Answer: Provide integrated services that might
include:
Packaging
Warehousing
Inventory management
Inbound or outbound transportation
Leverage business intelligence to create efficiencies and economies of scale in the supply
chain
Efficient supply chains - Answer: Designed for efficiency and low cost
By minimizing inventory and maximizing efficiencies in process flow
Responsive supply chains: - Answer: Flexibility and responsive service
Ability to react quickly to changing market demand and requirements
Push System - Answer: Produces goods in advance of customer demand
Uses a forecast of sales and moves them through the supply chain to points of sale where
they are stored as finished goods inventory
Pull System - Answer: Produces only what is needed at upstream stages in the supply chain
in response to customer demand signals from downstream stages
Push-pull boundary - Answer: Point in the supply chain that separates the push system
from the pull system
Postponement - Answer: Process of delaying product customization until the product is
closer to the customer at the end of the supply chain
APPHIA – Crafted with Care and Precision for Academic Excellence.
3
