OPMA 317 FINAL EXAM WITH ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS | 100 % VERIFIED AND
UPDATED , GRADED A + |MOST HIGHLY TESTED
QUESTIONS AND UPDATED| LATEST EXAM ,REVIEWED
AND NEWEST VERSION!!!!
During the SCM Exercise Graph Commonalities
CORRECT ANSWER:
Fluctuations, amplification, and a time lag between the retailer to the
factory
Beer Game Average
CORRECT ANSWER:
Everyone averaged around the same even though some came from
different backgrounds yet the players control the game, you can't
blame customer demand
What caused people to act the way they did during the beer game?
CORRECT ANSWER:
1) Lack of communication/cooperation
- guessing of the customer demand-->arbitrary ordering
RESULT: BULLWHIP EFFECT
2) Long lead time: results in panic when inventory does not instantly
arrive and solve your growing backlog, you panic and order even
more
Bullwhip effect
,CORRECT ANSWER:
information (orders) going back through the supply chain is distorted
and them amplified
What are the business implications of the supply chain structure?
CORRECT ANSWER:
Stockouts at times -> loss of profit and potential lost goodwill
Excess inventory at times-> holding costs, risk of obsolence
Overtime costs-> increase in labour cost
Layoff/Rehiring costs->match staffing levels to fluctuating demand
Expediting-> rush transportation costs
How does the supply chain structure affect consumers?
CORRECT ANSWER:
Leads to high costs throughout the supply chain, leading to a higher
end price for the consumer
How to improve the supply chain?
CORRECT ANSWER:
1) Communication and Cooperation
Determine actual consumer demand through technology
Forecasting (promotions, shutdowns, etc, share forecasts,
schedules, and decision making) (ex. Canadian Tire reduced lead
time from 46 days to 15!)
2) Shorten Lead times (allows a faster response) - How?
Administration (ordering) lead time - Information Tech
Physical Manufacturing Lead time (just in time production systems)
Transportation lead time (have suppliers geographically close by)
How to encourage communication and cooperation?
CORRECT ANSWER:
Incentives to share information (lower unit cost for actual data)
Vendor Managed Inventory
,- lower admin costs for the retailer
- vendor sees actual consumer demand
What is on-shoring?
CORRECT ANSWER:
Ikea's furniture provider opened up shop in the US which most
people thought they were crazy to do so. But the thing is it was very
costly for IKEA to transport the furniture. Having a plant in the US
would reduce lead times, sourcing costs, currency exposure,
transportation concerns
What is next-shoring?
CORRECT ANSWER:
local production near demand "next to"
Reduces logistics costs
- improves environmental performance
Reduces length of lead times
Reduces variability of lead times
Easier to identify local needs
Consumer perception: "jobs in home country"
--> It is a growing focus on countering traditional offshoring by
locating facilities closer to a company's home base
What if you cannot change the supply chain structure?
CORRECT ANSWER:
Try to understand the structure and adapt to it and manage
Ex: "the aspirin rule" - 10 min after taking two aspirin, you likely still
have a headache- why don't you take 2 more right then? YOU ARE
AWARE OF THE LEAD TIME AND DONT PANIC
Adapting to the supply chain structure
CORRECT ANSWER:
, Don't panic and recognize delays
Systems thinking - before you do anything, analyze how it will impact
your supply chain
How to avoid supply chain problems?
CORRECT ANSWER:
Change the supply chain structure (if possible)
- Communication and cooperation
- Shorter lead times (admin, manufacturing, distribution)
If you can't change the supply chain structure
- Adapt and recognize delays and predict ordering impacts
Choose "capable" suppliers (don't focus on cost)
- Can they accommodate temporary demand changes
- Are they willing and able to collaborate (share info)
Smooth your supply chain
CORRECT ANSWER:
Promotions (sales), discounts etc. create "waves" of demand
P&G example
Everyday lower prices is ideal approach for SCM (sale price but
within maximum quantity ex. limit 4)
Titantic Supply Chain Problems
CORRECT ANSWER:
While it was being constructed they had to use poor quality rivets as
other ships were being constructed at the time and the usual rivet
supplier could not supply for them. The quality did not match the
competitive standard.
A supply chain is
CORRECT ANSWER:
CORRECT VERIFIED ANSWERS | 100 % VERIFIED AND
UPDATED , GRADED A + |MOST HIGHLY TESTED
QUESTIONS AND UPDATED| LATEST EXAM ,REVIEWED
AND NEWEST VERSION!!!!
During the SCM Exercise Graph Commonalities
CORRECT ANSWER:
Fluctuations, amplification, and a time lag between the retailer to the
factory
Beer Game Average
CORRECT ANSWER:
Everyone averaged around the same even though some came from
different backgrounds yet the players control the game, you can't
blame customer demand
What caused people to act the way they did during the beer game?
CORRECT ANSWER:
1) Lack of communication/cooperation
- guessing of the customer demand-->arbitrary ordering
RESULT: BULLWHIP EFFECT
2) Long lead time: results in panic when inventory does not instantly
arrive and solve your growing backlog, you panic and order even
more
Bullwhip effect
,CORRECT ANSWER:
information (orders) going back through the supply chain is distorted
and them amplified
What are the business implications of the supply chain structure?
CORRECT ANSWER:
Stockouts at times -> loss of profit and potential lost goodwill
Excess inventory at times-> holding costs, risk of obsolence
Overtime costs-> increase in labour cost
Layoff/Rehiring costs->match staffing levels to fluctuating demand
Expediting-> rush transportation costs
How does the supply chain structure affect consumers?
CORRECT ANSWER:
Leads to high costs throughout the supply chain, leading to a higher
end price for the consumer
How to improve the supply chain?
CORRECT ANSWER:
1) Communication and Cooperation
Determine actual consumer demand through technology
Forecasting (promotions, shutdowns, etc, share forecasts,
schedules, and decision making) (ex. Canadian Tire reduced lead
time from 46 days to 15!)
2) Shorten Lead times (allows a faster response) - How?
Administration (ordering) lead time - Information Tech
Physical Manufacturing Lead time (just in time production systems)
Transportation lead time (have suppliers geographically close by)
How to encourage communication and cooperation?
CORRECT ANSWER:
Incentives to share information (lower unit cost for actual data)
Vendor Managed Inventory
,- lower admin costs for the retailer
- vendor sees actual consumer demand
What is on-shoring?
CORRECT ANSWER:
Ikea's furniture provider opened up shop in the US which most
people thought they were crazy to do so. But the thing is it was very
costly for IKEA to transport the furniture. Having a plant in the US
would reduce lead times, sourcing costs, currency exposure,
transportation concerns
What is next-shoring?
CORRECT ANSWER:
local production near demand "next to"
Reduces logistics costs
- improves environmental performance
Reduces length of lead times
Reduces variability of lead times
Easier to identify local needs
Consumer perception: "jobs in home country"
--> It is a growing focus on countering traditional offshoring by
locating facilities closer to a company's home base
What if you cannot change the supply chain structure?
CORRECT ANSWER:
Try to understand the structure and adapt to it and manage
Ex: "the aspirin rule" - 10 min after taking two aspirin, you likely still
have a headache- why don't you take 2 more right then? YOU ARE
AWARE OF THE LEAD TIME AND DONT PANIC
Adapting to the supply chain structure
CORRECT ANSWER:
, Don't panic and recognize delays
Systems thinking - before you do anything, analyze how it will impact
your supply chain
How to avoid supply chain problems?
CORRECT ANSWER:
Change the supply chain structure (if possible)
- Communication and cooperation
- Shorter lead times (admin, manufacturing, distribution)
If you can't change the supply chain structure
- Adapt and recognize delays and predict ordering impacts
Choose "capable" suppliers (don't focus on cost)
- Can they accommodate temporary demand changes
- Are they willing and able to collaborate (share info)
Smooth your supply chain
CORRECT ANSWER:
Promotions (sales), discounts etc. create "waves" of demand
P&G example
Everyday lower prices is ideal approach for SCM (sale price but
within maximum quantity ex. limit 4)
Titantic Supply Chain Problems
CORRECT ANSWER:
While it was being constructed they had to use poor quality rivets as
other ships were being constructed at the time and the usual rivet
supplier could not supply for them. The quality did not match the
competitive standard.
A supply chain is
CORRECT ANSWER:
