OM 300 Chilcutt exam 3 with
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precise detailed solutions |! |!
supply chain - Correct answer ✔the network of activities that
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deliver a product or service to the customer.
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activities within the supply chain - Correct answer ✔1. obtaining
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raw materials
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2. transforming raw materials into basic finished goods
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3. further processing of basic finished goods into customized
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products that are sold |! |! |!
supply chain echelon/tiers - Correct answer ✔-the lower the tier
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level, the closer the level to the customer
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objective of supply chain management - Correct answer ✔build a
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chain of suppliers that focuses on maximizing value to the
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ultimate customer |!
Supply Chain Management - Correct answer ✔The business
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function that coordinates all of the network links
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-coordinates movement of goods through supply chain from |! |! |! |! |! |! |! |!
suppliers to manufacturers to distributors
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-promotes information sharing in the supply chain, such as
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forecasts, sales data, & promotions |! |! |! |!
,The Supply Chain's Strategic Importance - Correct answer
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✔supply chain management is the integration of the activities
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that:
-procure materials and services|! |! |!
-transform them into intermediate goods and final products, &
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-deliver them through a distribution system
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activities performed as part of supply chain management -
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Correct answer ✔1. suppliers
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2. distributors
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3. warehousing and inventory
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4. transportation vendors
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5. order fulfilment
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6. credit and cash transfers
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7. accounts payable and receivable
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8. sharing customer, forecasting, and production information
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Outsourcing - Correct answer ✔-transfers traditional internal
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activities and resources of a firm to outside vendors
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-utilizes the efficiency that comes with specialization
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-firms outsource:
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information technology, accounting, legal, logistics, & production
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6 sourcing strategies - Correct answer ✔1. negotiating with
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many suppliers |!
,2. long-term partnering with few suppliers
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3. vertical integration
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4. joint ventures
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5. Keiretsu
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6. virtual companies that use suppliers on an as needed basis
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Many Suppliers - Correct answer ✔-Commonly used for
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commodity products |!
-Purchasing is typically based on price |! |! |! |! |!
-Suppliers compete with one another|! |! |! |!
-Supplier is responsible for maintaining necessary levels of
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technology, expertise, forecasting abilities, as well as cost,
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quality, and delivery competencies
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Few Suppliers - Correct answer ✔-Buyer forms longer term
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relationships with fewer suppliers |! |! |!
-Create value through economies of scale and learning curve
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improvements
-Suppliers more willing to participate in JIT programs and
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contribute design innovations and technological expertise
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-Cost of changing suppliers is huge
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Trade secrets and other alliances
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Vertical Integration - Correct answer ✔-developing the ability to
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produce goods or services previously purchased
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-integration may be forward, towards the customers, or
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backwards, towards suppliers |! |!
, -can improve cost, quality, and inventory but requires capital,
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managerial talent, and demand |! |! |!
-risky in industries with undergoing technological changes
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joint venture - Correct answer ✔-formal collaborations:
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enhance skills, secure supply, & reduce costs
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-cooperate without diluting the brand or conceding competitive
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advantage
Keiretsu Networks - Correct answer ✔-part collaboration, part
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purchasing from few suppliers, and part vertical integration
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-supplier becomes part of the company coalition
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-often provide financial support for suppliers through ownership
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or loans
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-members expect long-term relationships and provide technical
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expertise and stable quality production|! |! |! |!
-may extend through several tiers of the supply chain
|! |! |! |! |! |! |! |!
Virtual Companies - Correct answer ✔-Rely on a variety of good,
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stable relationships to provide services on demand
|! |! |! |! |! |!
-Exceptionally lean performance, specialized management |! |! |! |! |!
expertise, low capital investment, flexibility, and speed
|! |! |! |! |! |!
supply chain risk - Correct answer ✔-More reliance on supply
|! |! |! |! |! |! |! |! |! |!
chains means more risk |! |! |!
-customer and its suppliers are more dependent on each other
|! |! |! |! |! |! |! |! |! |!
as the number of suppliers used decreases
|! |! |! |! |! |! |!
|! |! |! |! |! |!
precise detailed solutions |! |!
supply chain - Correct answer ✔the network of activities that
|! |! |! |! |! |! |! |! |! |!
deliver a product or service to the customer.
|! |! |! |! |! |! |!
activities within the supply chain - Correct answer ✔1. obtaining
|! |! |! |! |! |! |! |! |! |!
raw materials
|!
2. transforming raw materials into basic finished goods
|! |! |! |! |! |! |!
3. further processing of basic finished goods into customized
|! |! |! |! |! |! |! |! |!
products that are sold |! |! |!
supply chain echelon/tiers - Correct answer ✔-the lower the tier
|! |! |! |! |! |! |! |! |! |!
level, the closer the level to the customer
|! |! |! |! |! |! |!
objective of supply chain management - Correct answer ✔build a
|! |! |! |! |! |! |! |! |!
chain of suppliers that focuses on maximizing value to the
|! |! |! |! |! |! |! |! |! |! |!
ultimate customer |!
Supply Chain Management - Correct answer ✔The business
|! |! |! |! |! |! |! |!
function that coordinates all of the network links
|! |! |! |! |! |! |!
-coordinates movement of goods through supply chain from |! |! |! |! |! |! |! |!
suppliers to manufacturers to distributors
|! |! |! |!
-promotes information sharing in the supply chain, such as
|! |! |! |! |! |! |! |! |!
forecasts, sales data, & promotions |! |! |! |!
,The Supply Chain's Strategic Importance - Correct answer
|! |! |! |! |! |! |! |!
✔supply chain management is the integration of the activities
|! |! |! |! |! |! |! |! |!
that:
-procure materials and services|! |! |!
-transform them into intermediate goods and final products, &
|! |! |! |! |! |! |! |!
-deliver them through a distribution system
|! |! |! |! |!
activities performed as part of supply chain management -
|! |! |! |! |! |! |! |! |!
Correct answer ✔1. suppliers
|! |! |!
2. distributors
|!
3. warehousing and inventory
|! |! |!
4. transportation vendors
|! |!
5. order fulfilment
|! |! |!
6. credit and cash transfers
|! |! |! |!
7. accounts payable and receivable
|! |! |! |! |!
8. sharing customer, forecasting, and production information
|! |! |! |! |! |!
Outsourcing - Correct answer ✔-transfers traditional internal
|! |! |! |! |! |! |!
activities and resources of a firm to outside vendors
|! |! |! |! |! |! |! |!
-utilizes the efficiency that comes with specialization
|! |! |! |! |! |! |!
-firms outsource:
|!
information technology, accounting, legal, logistics, & production
|! |! |! |! |! |!
6 sourcing strategies - Correct answer ✔1. negotiating with
|! |! |! |! |! |! |! |! |!
many suppliers |!
,2. long-term partnering with few suppliers
|! |! |! |! |! |!
3. vertical integration
|! |! |!
4. joint ventures
|! |!
5. Keiretsu
|! |!
6. virtual companies that use suppliers on an as needed basis
|! |! |! |! |! |! |! |! |! |!
Many Suppliers - Correct answer ✔-Commonly used for
|! |! |! |! |! |! |! |!
commodity products |!
-Purchasing is typically based on price |! |! |! |! |!
-Suppliers compete with one another|! |! |! |!
-Supplier is responsible for maintaining necessary levels of
|! |! |! |! |! |! |! |!
technology, expertise, forecasting abilities, as well as cost,
|! |! |! |! |! |! |! |!
quality, and delivery competencies
|! |! |!
Few Suppliers - Correct answer ✔-Buyer forms longer term
|! |! |! |! |! |! |! |! |!
relationships with fewer suppliers |! |! |!
-Create value through economies of scale and learning curve
|! |! |! |! |! |! |! |! |!
improvements
-Suppliers more willing to participate in JIT programs and
|! |! |! |! |! |! |! |! |!
contribute design innovations and technological expertise
|! |! |! |! |!
-Cost of changing suppliers is huge
|! |! |! |! |!
Trade secrets and other alliances
|! |! |! |!
Vertical Integration - Correct answer ✔-developing the ability to
|! |! |! |! |! |! |! |! |!
produce goods or services previously purchased
|! |! |! |! |! |!
-integration may be forward, towards the customers, or
|! |! |! |! |! |! |! |!
backwards, towards suppliers |! |!
, -can improve cost, quality, and inventory but requires capital,
|! |! |! |! |! |! |! |! |!
managerial talent, and demand |! |! |!
-risky in industries with undergoing technological changes
|! |! |! |! |! |!
joint venture - Correct answer ✔-formal collaborations:
|! |! |! |! |! |!
enhance skills, secure supply, & reduce costs
|! |! |! |! |! |!
-cooperate without diluting the brand or conceding competitive
|! |! |! |! |! |! |! |!
advantage
Keiretsu Networks - Correct answer ✔-part collaboration, part
|! |! |! |! |! |! |! |!
purchasing from few suppliers, and part vertical integration
|! |! |! |! |! |! |!
-supplier becomes part of the company coalition
|! |! |! |! |! |!
-often provide financial support for suppliers through ownership
|! |! |! |! |! |! |! |!
or loans
|!
-members expect long-term relationships and provide technical
|! |! |! |! |! |! |!
expertise and stable quality production|! |! |! |!
-may extend through several tiers of the supply chain
|! |! |! |! |! |! |! |!
Virtual Companies - Correct answer ✔-Rely on a variety of good,
|! |! |! |! |! |! |! |! |! |! |!
stable relationships to provide services on demand
|! |! |! |! |! |!
-Exceptionally lean performance, specialized management |! |! |! |! |!
expertise, low capital investment, flexibility, and speed
|! |! |! |! |! |!
supply chain risk - Correct answer ✔-More reliance on supply
|! |! |! |! |! |! |! |! |! |!
chains means more risk |! |! |!
-customer and its suppliers are more dependent on each other
|! |! |! |! |! |! |! |! |! |!
as the number of suppliers used decreases
|! |! |! |! |! |! |!
