MGT 8803 Supply Chain Management UPDATED ACTUAL
Questions and CORRECT Answers
responsive supply chains Speed Focused.
Innovative Products
Efficient Supply Chain Cost Focused
Good for Functional Products
Functional Products Predictable demand
Low inventory cost
long product life
low inventory cost
low product variety
low stockout and obsolescence cost
Stockout an event that occurs when no inventory is available
Innovative Products High demand uncertainty
short product life
high inventory cost
high profit margins
high product variety/low volume
high stockout cost/obsolescence cost
Efficient vs Responsive SC Operating Model Efficient: supply predictable demand at lowest possible cost
Responsive: Respond quickly to changes in demand to
minimize stockout, lost sales, markdowns, and obsolete
inventory.
, Efficient vs Responsive SC Capacity Efficient: Maintain high average utilization rate
Strategy
Responsive: Deploy excess buffer capacity/capacity flexibility
Efficient vs Responsive SC Inventory Efficient: high turns, minimize inventory (inventory = cost)
Strategy
Responsive: deploy buffer stock (extra inventory) of
parts/finished goods
Efficient vs Responsive SC Lead Time Efficient: Reduce lead time so long as it doesn't increase cost.
Strategy
Responsive: Invest aggressively to reduce lead time
Efficient vs Responsive SC Supplier Efficient: cost and quality
Selection
Responsive: Speed, flexibility, responsiveness, and quality
Efficient vs Responsive SC Logistics Efficient: Low cost modes (Boat, train)
Selection
Responsive: Fast modes (e.g. air)
Agile Supply Chain mix of responsive and efficient supply chains.
Supply Chain Network Configuration Centralized vs. Decentralized
Centralized Supply Chain One...
-supplier
-manufacturer location
-warehouse
Then distribute
Advantages:
- lower total inventory
-Pooling effect (smaller safety stock req'd)
- higher availability
- higher shipping volume, (negotiating power)
- less complex
- easier to standardize
- Total cost?
Disadvantages:
- Higher shipping distances cost more
- less responsive
Questions and CORRECT Answers
responsive supply chains Speed Focused.
Innovative Products
Efficient Supply Chain Cost Focused
Good for Functional Products
Functional Products Predictable demand
Low inventory cost
long product life
low inventory cost
low product variety
low stockout and obsolescence cost
Stockout an event that occurs when no inventory is available
Innovative Products High demand uncertainty
short product life
high inventory cost
high profit margins
high product variety/low volume
high stockout cost/obsolescence cost
Efficient vs Responsive SC Operating Model Efficient: supply predictable demand at lowest possible cost
Responsive: Respond quickly to changes in demand to
minimize stockout, lost sales, markdowns, and obsolete
inventory.
, Efficient vs Responsive SC Capacity Efficient: Maintain high average utilization rate
Strategy
Responsive: Deploy excess buffer capacity/capacity flexibility
Efficient vs Responsive SC Inventory Efficient: high turns, minimize inventory (inventory = cost)
Strategy
Responsive: deploy buffer stock (extra inventory) of
parts/finished goods
Efficient vs Responsive SC Lead Time Efficient: Reduce lead time so long as it doesn't increase cost.
Strategy
Responsive: Invest aggressively to reduce lead time
Efficient vs Responsive SC Supplier Efficient: cost and quality
Selection
Responsive: Speed, flexibility, responsiveness, and quality
Efficient vs Responsive SC Logistics Efficient: Low cost modes (Boat, train)
Selection
Responsive: Fast modes (e.g. air)
Agile Supply Chain mix of responsive and efficient supply chains.
Supply Chain Network Configuration Centralized vs. Decentralized
Centralized Supply Chain One...
-supplier
-manufacturer location
-warehouse
Then distribute
Advantages:
- lower total inventory
-Pooling effect (smaller safety stock req'd)
- higher availability
- higher shipping volume, (negotiating power)
- less complex
- easier to standardize
- Total cost?
Disadvantages:
- Higher shipping distances cost more
- less responsive
