SCMN 2150 Test 2 Auburn University Questions & Answers Solved 100% Correct!!

What is procurement? - Answer-process of actually purchasing goods and services How does procurement differ from strategic sourcing? - Answer-Procurement operations support tactical day-to-day transactions such as issuing purchase orders to suppliers, whereas strategic sourcing represents to strategic planning, supplier development, contract negotiation, supply chain infrastructure, and outsourcing models. What is outsourcing? - Answer-obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source. What costs and challenges are involved in outsourcing? - Answer-slower turnaround time. lack of business or domain knowledge. language and cultural barriers. time zone differences. lack of control. What is production? - Answer-The process by which inputs are combined, transformed, and turned into outputs. We can produce both goods and services What are the three key components of production? - Answer-1. input 2. transformation 3. output What is the focus of lean production? - Answer-focus is to eliminate waste What's the focus of mass customization? - Answer-focuses on providing customers with good value for their money and increasing company profits. When buyers get custom products, they focus more on the benefits and less on price.What production processes are available for companies to use? - Answer-Job production batch production continuous production What issues and factors drive the production layout decision? - Answer-production variety and volume. What is the purpose of break-even analysis? - Answer-main purpose is to determine the minimum output that must be exceeded for a business to profit. It also is a rough indicator of the earnings impact of a marketing activity. What is logistics? - Answer-Logistics is planning and executing of the movement and support of forces. What are the key performance metrics in logistics (hint: they are much the same as the supplier evaluation metrics)? - Answer-Shipping Time Accuracy Delivery Time Transportation Costs Warehousing Costs Number of Shipments Inventory Accuracy Inventory Turnover Inventory to Sales Ratio Why is transportation a critical logistics function? What factors must be considered when choosing a mode or carrier? - Answer-· Transportation management focuses on the efficient physical flows of product between facilities across the supply chain. Transportation system links all pick-up and deliver-to points. Goals- On-time, damage-free, within budget. Transportation focuses on the procurement and management of a unique service offering.· Volume of freight, customer location, product value, product characteristics, service requirements, jacks a bitch. What are the primary purposes of holding inventory? What types of inventory ordering models exist? - Answer-· To separate various parts of the production process, stop the firm from fluctuations in demandand provide a stock of goods that will provide a selection for customers, taking advantage of quantity discounts, hedge against inflation.· Fixed order quantity, fixed time period, continuous replenishment model. How do you evaluate inventory performance? - Answer-Average inventory value: how much do we typically have on hand.5 (Value of Goods On Hand)Inventory turns: velocity of inventory in systemSales / Average Inventory ValueSelling Days on Hand: how long will the current inventory serve demand365 / Inventory TurnsInventory Carrying Cost - financial measurements that calculate all the costs (cost of capital to finance inventory, opportunity cost of capital, inventory taxes, inventory risk costs, inventory service costs) associated with holding goods in storage.ICC % x Average Inventory ValueInventory Accuracy: how closely the physical inventory matches what the records indicate is on-hand$ Recorded Inventory - $ Physical Inventory = $ Adjustments$ Adjustments / $ Recorded Inventory = Error Rate What is post sales customer service? What do call centers do? - Answer-drive customer satisfaction, retention, and profits. What is service parts logistics? How does it differ from traditional logistics? - Answer-Industry supports the overall repair and maintenance of equipment as it moves through its post-sales lifecycle. Traditional forecasting concepts and supply chain strategies do not apply to service parts What is reverse logistics? - Answer-The backward flow of goods returned to the supply chain- Catch all term consisting of:1. Returns2. Remanufacturing3. Refurbishments activities What is the purpose of break-even analysis and assembly line balancing - Answer-The very purpose of line balancing is to assign workloads to each assigned work station in a manner that the every works stations has approximately same amount of work to be done.