SCM 300 Exam 1 Modules 1-4 (Davila) Questions With Answers Graded A+ Assured Success

Taking over the role of your supplier. Example: We're not going to buy bread for our sandwiches, we'll make the bread ourselves from now on. - ️️Backward Integration Anticipation Inventory - ️️Used to absorb uneven rates of demand or supply perhaps caused by seasonal demand, holidays, quantity discounts, economic production runs EX: Snowblowers Taking over the role of companies closer to the customer. Example: We will no longer sell Coca-Cola through our distributors, from now on, we'll only sell Coke out of CocaCola stores. - ️️Forward Integration Supply Chain Management - ️️the management of the chain of supplies buy it - make it - move it - sell it - service it - ️️SCM Flows/Strategy 1. cost 2. quality 3. speed/time 4. flexibility - ️️Competitive Priorities value (what i get/price) - ️️customers perspective productivity (what i make/cost) - ️️organization perspective 1. Procurement 2. Operations 3. Logistics - ️️SCM Key Components 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 destinationpurchasing - production - distribution - retail sales - ️️The Supply Chain The efficient integration of the Supply Chain - ️️SCM Def satisfy the customer, satisfy the company, consider the future - ️️Successful SC Manager sustainable long term profits and maimize ROI - ️️Corporation Goals 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 firsttier 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 Business model - ️️planning to purchase, transform, deliver, and sell products with intent on making a profit Supply Chain Visibility - ️️ability to see what is happening with inventory up and down a supply chain Profit - ️️Formula: profit = revenue - cost. If supply chain creates a damaged product no one will buy it for a premium price, that's why it's important for the supply chain to deliver the best products ROI - ️️Formula: total profit/ total invest money. Return on investment- an economic measure that helps evaluate the return of money. Scenario 1: 10/1,000 = 0.01 Scenario 2: 10/1 = 10 (good investment). total profit/ total invest money - ️️ROI Formula profit= revenue - cost - ️️Profits Formula Delivery time - ️️from order placement to order fulfillment1. defaults 2. overproduction 3. transportation (moving products may involve damage or theft) 4. motion (employees get tired thus get injured) 5. waiting (work in process finished to soon and is waiting to be finished) 6. inventory (not providing return) 7. over processing (doing unnecessary work) - ️️7 types of waste a. supply chain metrics: be able to report success or failure. b. info technology tools: knowing what's happening in global supply chain c. relationship management skills: being able to work with executives and employees at other companies d. financial resources: company needs to be willing to invest in supply chains. e. organizational integration: being able to communicate between marketing, design, finance, and advertising. - ️️SC Tools Amazon - ️️B2C DHL Cargo - ️️B2B Ford Motors - ️️B2C and B2B