SCM 300 Exam 3 Davilla UPDATED ACTUAL Questions and CORRECT Answers
1. cost
2. quality
Competitive priorities
3. speed/time
4. flexibility
Value what i get/price
Productivity what i make/cost
1. Procurement
SCM key components 2. Operations
3. Logistics
Buy it: process of obtaining services, supplies, and equip-
Procurement
ment in conformance with corporate regulations
Make it: makes business processes effective and eflcient.
Operations They help the organization create high quality products/
services using the fewest resources
Move it: developing the transportation itinerary and find-
ing reliable transportation and storage partners, to be
Logistics
able to navigate the flow of materials to the final destina-
tion
Reverse logistics reuse of production and materials
a company's direct supplier. A firm that directly provides
1st tier suppliers
goods and/ or services to a company
a firm provides goods and/ or services to a company's
2nd tier suppliers
first-tier supplier
direction in which products flow towards an end con-
sumer. Direction is the right.
Downstream
Storage and consolidation/sorting
picking and packing, labeling
, direction from customers to suppliers. Direction is the left
Upstream
central return center AKA reverse logistics activities
protects against uncertainty in demand, lead time, supply
Safety stock
not intended to be used. cushion, insurance, etc
Orders that have been placed but not yet received nor paid
Pipeline inventory for by customer
Inventory "on its way" to the customer
company taking on additional supply classes (Forward
Vertical integration
and backward)
Order less if holding cost too high
Order more If holding cost too low
less storage space required (lowering holding cost), low-
er chance of inv shrinkage, less materials handling, less
Low inventory pros
money invested in inventory
*Cons for High Inventory
higher levels of customer service (having inventory ad-
dresses immediate demand), quantity discounts possible,
High inventory pros fewer orders will be placed, greater security against un-
expected demand variability
*Cons for Low Inventory
order cost < Carrying cost when to use eoq
consumer needs, cost quality speed & flex, technological
capability, location, information technology system, ability
Supplier considerations
to innovate, capacity potential, 2nd & 3rd tier suppliers,
reliability, and service
holding cost = ordering cost EOQ formula
Bottleneck slowest or weakest workstation in assembly line
Line flow strategy
, -make items fast and make it over and over. everything
goes down a line
Demand: Standard Items, High Volumes, Static Industry
Layout: Product Focused/Line Flow Layouts
Manufacturing system: Assembly Lines, Continuous Flow
Systems
Make-to-stock systems
every item made is different, work can go in any direction
Demand: Customized Items, Low Volumes, Dynamic In-
dustry
Flexible flow strategy
Layout: Process Focused/Flexible Flow Layouts
Manufacturing system: Job Shops
Make-to-order systems
every item is the same but one aspect is different (ie car
color)
Demand: Moderation (Customization, Changes, Indus-
try)
Hybrid strategy
Layout: Hybrid Layouts
Manufacturing system: Group Technology (Cellular) Lay-
out
Possibly an Assemble-to-order system
Definition: maximum time allowed for work on one unit at
Cycle time
each station
Definittion: Add ALL the work element times together
Total task time
Total amount of work time that went into one end Item
anything that you shovel, pump, bucket. Stuff that is loose,
Bulk cargo
stuff that is free flowing
putting item into packages and smaller containers or
Breakbulk cargo
shrink wrapped
1. cost
2. quality
Competitive priorities
3. speed/time
4. flexibility
Value what i get/price
Productivity what i make/cost
1. Procurement
SCM key components 2. Operations
3. Logistics
Buy it: process of obtaining services, supplies, and equip-
Procurement
ment in conformance with corporate regulations
Make it: makes business processes effective and eflcient.
Operations They help the organization create high quality products/
services using the fewest resources
Move it: developing the transportation itinerary and find-
ing reliable transportation and storage partners, to be
Logistics
able to navigate the flow of materials to the final destina-
tion
Reverse logistics reuse of production and materials
a company's direct supplier. A firm that directly provides
1st tier suppliers
goods and/ or services to a company
a firm provides goods and/ or services to a company's
2nd tier suppliers
first-tier supplier
direction in which products flow towards an end con-
sumer. Direction is the right.
Downstream
Storage and consolidation/sorting
picking and packing, labeling
, direction from customers to suppliers. Direction is the left
Upstream
central return center AKA reverse logistics activities
protects against uncertainty in demand, lead time, supply
Safety stock
not intended to be used. cushion, insurance, etc
Orders that have been placed but not yet received nor paid
Pipeline inventory for by customer
Inventory "on its way" to the customer
company taking on additional supply classes (Forward
Vertical integration
and backward)
Order less if holding cost too high
Order more If holding cost too low
less storage space required (lowering holding cost), low-
er chance of inv shrinkage, less materials handling, less
Low inventory pros
money invested in inventory
*Cons for High Inventory
higher levels of customer service (having inventory ad-
dresses immediate demand), quantity discounts possible,
High inventory pros fewer orders will be placed, greater security against un-
expected demand variability
*Cons for Low Inventory
order cost < Carrying cost when to use eoq
consumer needs, cost quality speed & flex, technological
capability, location, information technology system, ability
Supplier considerations
to innovate, capacity potential, 2nd & 3rd tier suppliers,
reliability, and service
holding cost = ordering cost EOQ formula
Bottleneck slowest or weakest workstation in assembly line
Line flow strategy
, -make items fast and make it over and over. everything
goes down a line
Demand: Standard Items, High Volumes, Static Industry
Layout: Product Focused/Line Flow Layouts
Manufacturing system: Assembly Lines, Continuous Flow
Systems
Make-to-stock systems
every item made is different, work can go in any direction
Demand: Customized Items, Low Volumes, Dynamic In-
dustry
Flexible flow strategy
Layout: Process Focused/Flexible Flow Layouts
Manufacturing system: Job Shops
Make-to-order systems
every item is the same but one aspect is different (ie car
color)
Demand: Moderation (Customization, Changes, Indus-
try)
Hybrid strategy
Layout: Hybrid Layouts
Manufacturing system: Group Technology (Cellular) Lay-
out
Possibly an Assemble-to-order system
Definition: maximum time allowed for work on one unit at
Cycle time
each station
Definittion: Add ALL the work element times together
Total task time
Total amount of work time that went into one end Item
anything that you shovel, pump, bucket. Stuff that is loose,
Bulk cargo
stuff that is free flowing
putting item into packages and smaller containers or
Breakbulk cargo
shrink wrapped
