SCMN 2150 (Test 1) Questions And Answers

Supply chain management - Answer-the art of managing the flow of materials and products, information, and financial resources from source to user Who are the key participants and the primary processes in a supply chain - Answer-- Suppliers - Manufacturers - Distributors - Retailers - Consumers (most important) What are the goals of supply chain management - Answer-SCM helps companies outpace the competition by managing their materials, product, and information flows (better, faster, cheaper) How can companies develop a competitive advantage using supply chain management - Answer-Develop relationships, improve customer satisfaction, rationalize product touch points, drive out costs and achieve efficiencies Links - Answer-The transportation method used to connect the nodes in a supply chain Nodes - Answer-(plants, warehouses, stores) a fixed point in a supply chain where valued added processes take place. Goods are processed, transformed, mixed, held, or sold at nodes Centralized network - Answer-One factory that distributes nationally Decentralized network - Answer-Many smaller factories all over the country Direct delivery - Answer-Package is delivered directly from the warehouse to your house Cross-dock - Answer-Is made in a factory and put in a grocery store for quick purchase and consumptionDistribution center - Answer-Warehouse makes the product and stores it in a distribution center until it is purchased Steps in a network configuration process - Answer-1. Determine problem and model 2. Collect and validate data 3. Develop and model scenarios 4. Evaluate scenario results 5. Take strategic action 3 types of supply chain planning - Answer-- Short range plans (operation managers and supervisors) - Intermediate range plans (operations managers) - Long range plans (top executives) Short range plans (operation managers and supervisors) - Answer-Job assignments- ordering, job scheduling, dispatching Intermediate range plans (operations managers) - Answer-Job assignments- Demand planning and forcasting, sales and operations planning, setting employment, inventory Long range plans (top executives) - Answer-Job assignments- R&D, new product plans, capital expenses, facility location, expansion Capacity - Answer-the rate at which output can be produced by an operating unit machine or facility Capacity planning - Answer-process of establishing the output rate that can be achieved Design capacity - Answer-maximum output rate or service capacity an operation or facility is designed forEffective capacity - Answer-logical or reasonable expectation of capacity use (design capacity minus typical allowances such as personal time, maintenance, and scrap) Capacity utilization equals - Answer-actual output/capacity (100%) (measures how much of the available capacity is actually being used) Match capacity to demand - Answer-- If capacity > demand then risk = excess inventory - If capacity < demand then risk = inventory shortage