OPMA 317 Final Exam(All Accurately solved)
Bullwhip effect correct answers Information (orders) going back through the supply chain are distorted
and amplified
How to improve the supply chain correct answers Communication and cooperation, and shorten lead
times (allows faster response)
On-shoring correct answers Local production near demand; reduces costs, length of lead times, and
variability of lead times; easier to identify local needs; lead to the perception of keeping jobs local
Supply Chain correct answers A network of facilities that procure raw materials , transform them into
intermediate goods and then final products, and deliver the products to customers through a distribution
system
Vertical integration correct answers "make or buy"; the portion of the supply chain that the company
owns; companies may not outsource to keep control of the process or intellectual property
Green Sourcing correct answers An environmentally friendly supply chain; makes a supplier an order
winner and cuts down on costs
Types of purchasing correct answers 1. Centralized Purchasing -> all departments of a company order
through a common supplier
2. Stockless Purchasing -> the supplier delivers material directly to the production area rather than to a
stockroom
3. Blanket Purchase Order -> a long term purchase commitment to a supplier for items that are to be
delivered upon receipt of a shipping requisition
Pros of Blanket Purchase Orders correct answers Retailer -> unit cost savings, lower holding costs, lower
ordering costs, less supply uncertainty
Manufacturer -> known demand
Vendor Managed Inventory (VMI) correct answers Vendors (manufacturers) manage the customer's
inventory of the products they supply
, Time, Place, and Form Utility correct answers Time utility -> provides goods to customers when wanted,
not when produced
Place Utility -> provide goods where they are needed not where they are produced
Form Utility -> physical/chemical change in goods and/or packaging
Shipment Strategies correct answers 1. Consolidating
2. Cross-docking
3. Drop shipping
Consolidating correct answers Have a single distribution centre to consolidate supplier shipments to retail
locations
Cross-Docking correct answers Removing the intermediate step of storage by distributing them
immediately after they are received; reduces product handling, inventory, and handling cost; requires tight
scheduling extensive information technology
Drop Shipping correct answers Supplier ships directly to customer (rather than supplier->retailer-
>customer)
Postponement correct answers Intentionally "delay" supply chain activities to improve flexibility and
reduce inventory costs (ie. HP printer example with the language specific pieces being put in at the last
moment)
Third Party Logistics correct answers Outsourcing some logistical activities; allows for each partner to
focus only on what they do best rather than everything
Humanitarian Supply Chains correct answers The processes and systems involved in mobilizing people,
resources, skills, and knowledge to help vulnerable people affected by disaster; use pro-positioned
resources (just in case); require speed, high inventory levels, non-perishables, many stakeholders to
coordinate with, high visibility of performance
Reverse supply chains correct answers Chain of customer to supplier; examples include customers
returning items that are damaged or recycling goods
Bullwhip effect correct answers Information (orders) going back through the supply chain are distorted
and amplified
How to improve the supply chain correct answers Communication and cooperation, and shorten lead
times (allows faster response)
On-shoring correct answers Local production near demand; reduces costs, length of lead times, and
variability of lead times; easier to identify local needs; lead to the perception of keeping jobs local
Supply Chain correct answers A network of facilities that procure raw materials , transform them into
intermediate goods and then final products, and deliver the products to customers through a distribution
system
Vertical integration correct answers "make or buy"; the portion of the supply chain that the company
owns; companies may not outsource to keep control of the process or intellectual property
Green Sourcing correct answers An environmentally friendly supply chain; makes a supplier an order
winner and cuts down on costs
Types of purchasing correct answers 1. Centralized Purchasing -> all departments of a company order
through a common supplier
2. Stockless Purchasing -> the supplier delivers material directly to the production area rather than to a
stockroom
3. Blanket Purchase Order -> a long term purchase commitment to a supplier for items that are to be
delivered upon receipt of a shipping requisition
Pros of Blanket Purchase Orders correct answers Retailer -> unit cost savings, lower holding costs, lower
ordering costs, less supply uncertainty
Manufacturer -> known demand
Vendor Managed Inventory (VMI) correct answers Vendors (manufacturers) manage the customer's
inventory of the products they supply
, Time, Place, and Form Utility correct answers Time utility -> provides goods to customers when wanted,
not when produced
Place Utility -> provide goods where they are needed not where they are produced
Form Utility -> physical/chemical change in goods and/or packaging
Shipment Strategies correct answers 1. Consolidating
2. Cross-docking
3. Drop shipping
Consolidating correct answers Have a single distribution centre to consolidate supplier shipments to retail
locations
Cross-Docking correct answers Removing the intermediate step of storage by distributing them
immediately after they are received; reduces product handling, inventory, and handling cost; requires tight
scheduling extensive information technology
Drop Shipping correct answers Supplier ships directly to customer (rather than supplier->retailer-
>customer)
Postponement correct answers Intentionally "delay" supply chain activities to improve flexibility and
reduce inventory costs (ie. HP printer example with the language specific pieces being put in at the last
moment)
Third Party Logistics correct answers Outsourcing some logistical activities; allows for each partner to
focus only on what they do best rather than everything
Humanitarian Supply Chains correct answers The processes and systems involved in mobilizing people,
resources, skills, and knowledge to help vulnerable people affected by disaster; use pro-positioned
resources (just in case); require speed, high inventory levels, non-perishables, many stakeholders to
coordinate with, high visibility of performance
Reverse supply chains correct answers Chain of customer to supplier; examples include customers
returning items that are damaged or recycling goods
