SCM 300 Exam 3 Davilla Questions and Answers
Competitive priorities - ✅✅1. cost
2. quality
3. speed/time
4. flexibility
Value - ✅✅what i get/price
Productivity - ✅✅what i make/cost
SCM key components - ✅✅1. Procurement
2. Operations
3. Logistics
Procurement - ✅✅Buy it: process of obtaining services, supplies, and
equipment in conformance with corporate regulations
Operations - ✅✅Make it: makes business processes effective and efficient.
They help the organization create high quality products/ services using the fewest
resources
Logistics - ✅✅Move it: developing the transportation itinerary and finding
reliable transportation and storage partners, to be able to navigate the flow of
materials to the final destination
,Reverse logistics - ✅✅reuse of production and materials
1st tier suppliers - ✅✅a company's direct supplier. A firm that directly provides
goods and/ or services to a company
2nd tier suppliers - ✅✅a firm provides goods and/ or services to a company's
first-tier supplier
Downstream - ✅✅direction in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - ✅✅direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Safety stock - ✅✅protects against uncertainty in demand, lead time, supply
not intended to be used. cushion, insurance, etc
Pipeline inventory - ✅✅Orders that have been placed but not yet received nor
paid for by customer
Inventory "on its way" to the customer
Vertical integration - ✅✅company taking on additional supply classes (Forward
and backward)
,Order less - ✅✅if holding cost too high
Order more - ✅✅If holding cost too low
Low inventory pros - ✅✅less storage space required (lowering holding cost),
lower chance of inv shrinkage, less materials handling, less money invested in
inventory
*Cons for High Inventory
High inventory pros - ✅✅higher levels of customer service (having inventory
addresses immediate demand), quantity discounts possible, fewer orders will be
placed, greater security against unexpected demand variability
*Cons for Low Inventory
order cost < Carrying cost - ✅✅when to use eoq
Supplier considerations - ✅✅consumer needs, cost quality speed & flex,
technological capability, location, information technology system, ability 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
Flexible flow strategy - ✅✅every item made is different, work can go in any
direction
Demand: Customized Items, Low Volumes, Dynamic Industry
Layout: Process Focused/Flexible Flow Layouts
Manufacturing system: Job Shops
Make-to-order systems
Hybrid strategy - ✅✅every item is the same but one aspect is different (ie car
color)
Demand: Moderation (Customization, Changes, Industry)
Layout: Hybrid Layouts
Manufacturing system: Group Technology (Cellular) Layout
Possibly an Assemble-to-order system
Cycle time - ✅✅Definition: maximum time allowed for work on one unit at
each station
Total task time - ✅✅Definittion: Add ALL the work element times together
Competitive priorities - ✅✅1. cost
2. quality
3. speed/time
4. flexibility
Value - ✅✅what i get/price
Productivity - ✅✅what i make/cost
SCM key components - ✅✅1. Procurement
2. Operations
3. Logistics
Procurement - ✅✅Buy it: process of obtaining services, supplies, and
equipment in conformance with corporate regulations
Operations - ✅✅Make it: makes business processes effective and efficient.
They help the organization create high quality products/ services using the fewest
resources
Logistics - ✅✅Move it: developing the transportation itinerary and finding
reliable transportation and storage partners, to be able to navigate the flow of
materials to the final destination
,Reverse logistics - ✅✅reuse of production and materials
1st tier suppliers - ✅✅a company's direct supplier. A firm that directly provides
goods and/ or services to a company
2nd tier suppliers - ✅✅a firm provides goods and/ or services to a company's
first-tier supplier
Downstream - ✅✅direction in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - ✅✅direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Safety stock - ✅✅protects against uncertainty in demand, lead time, supply
not intended to be used. cushion, insurance, etc
Pipeline inventory - ✅✅Orders that have been placed but not yet received nor
paid for by customer
Inventory "on its way" to the customer
Vertical integration - ✅✅company taking on additional supply classes (Forward
and backward)
,Order less - ✅✅if holding cost too high
Order more - ✅✅If holding cost too low
Low inventory pros - ✅✅less storage space required (lowering holding cost),
lower chance of inv shrinkage, less materials handling, less money invested in
inventory
*Cons for High Inventory
High inventory pros - ✅✅higher levels of customer service (having inventory
addresses immediate demand), quantity discounts possible, fewer orders will be
placed, greater security against unexpected demand variability
*Cons for Low Inventory
order cost < Carrying cost - ✅✅when to use eoq
Supplier considerations - ✅✅consumer needs, cost quality speed & flex,
technological capability, location, information technology system, ability 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
Flexible flow strategy - ✅✅every item made is different, work can go in any
direction
Demand: Customized Items, Low Volumes, Dynamic Industry
Layout: Process Focused/Flexible Flow Layouts
Manufacturing system: Job Shops
Make-to-order systems
Hybrid strategy - ✅✅every item is the same but one aspect is different (ie car
color)
Demand: Moderation (Customization, Changes, Industry)
Layout: Hybrid Layouts
Manufacturing system: Group Technology (Cellular) Layout
Possibly an Assemble-to-order system
Cycle time - ✅✅Definition: maximum time allowed for work on one unit at
each station
Total task time - ✅✅Definittion: Add ALL the work element times together
