OPMA 317 - Final Exam(100% Guaranteed)
Purchase vs Product Order Flow correct answers Upstream vs. Downstream
What happens to fluctuations and why? correct answers Fluctuations are amplified due to a time lag
Beer Game: What caused people to act the way they did correct answers Lack of
communication/cooperation and long lead times
Bullwhip Effect correct answers Information going back through the supply chain is distorted and then
amplified. Members of the supply chain overreact to changes in demand.
How does a long lead time affect decision making? correct answers Panic - when inventory does not
instantly arrive and solve your growing backlog, you panic and order even more
Business Implications of Supply Chain correct answers Stockouts, excess inventory, overtime costs,
layoffs/re-hiring costs, expediting
Bullwhip Effect Measure correct answers Bullwhip effect is present if variance of orders/variance of
demand is greater than 1
Stanley - Power Tools correct answers Accurately predicted jump in demand pre-Covid and kept their
factories open in Mexico
How to incentivize cooperation/communication? correct answers Provide incentives to share information.
Use vendor managed inventory.
Mattel correct answers Collected their own daily demand data in real time by visiting stores
Collaborative Planning Forecasting & Replenishment example correct answers Canadian Tire has a 26-
week planned order stream that is updated weekly
How to shorten lead times correct answers Administrative lead = improve information technology
, Physical manufacturing lead = just in time production
Transportation lead = have suppliers geographically close by (on-shoring)
What to do if you cannot change the supply chain structure (ex. SMEs) correct answers Adapt and
manage: The Aspirin Rule - once demand changes, don't panic, just correct once
Beer Game Learning (3) correct answers Change the supply chain structure (communication &
cooperation, shorter lead times). If you can't change the structure, adapt and wait. Choose capable
suppliers/the best teammate.
Keep a smooth supply chain correct answers Don't offer significant sales/discounts, if you have to, limit
the quantity of items that can be bought at discounted prices. Don't do lumpsum orders, order evenly.
What is a supply chain? correct answers A network of facilities that procure raw materials (purchasing)
and distribute them. Managing inbound procurement and outbound logistics.
Supply Chain Network correct answers Suppliers -> Manufacturing -> Distribution -> Customers
Why did supply chains extend globally? correct answers To reduce labour costs (now the lowest labour
cost is in Ethiopia)
Vertical Integration correct answers The proportion of the supply chain that the company owns (make vs.
buy)
Why would an organization not want to outsource? correct answers Control (strategic process, intellectual
property, "messy" coordination). Example, Tesla manufactures their car batteries.
Procurement/Purchasing correct answers Are a high % of sales. Involves buying materials not internally
developed.
Vendor Selection correct answers Based on criteria such as location, quality, sustainability, price, on-time
delivery (among others)
Purchase vs Product Order Flow correct answers Upstream vs. Downstream
What happens to fluctuations and why? correct answers Fluctuations are amplified due to a time lag
Beer Game: What caused people to act the way they did correct answers Lack of
communication/cooperation and long lead times
Bullwhip Effect correct answers Information going back through the supply chain is distorted and then
amplified. Members of the supply chain overreact to changes in demand.
How does a long lead time affect decision making? correct answers Panic - when inventory does not
instantly arrive and solve your growing backlog, you panic and order even more
Business Implications of Supply Chain correct answers Stockouts, excess inventory, overtime costs,
layoffs/re-hiring costs, expediting
Bullwhip Effect Measure correct answers Bullwhip effect is present if variance of orders/variance of
demand is greater than 1
Stanley - Power Tools correct answers Accurately predicted jump in demand pre-Covid and kept their
factories open in Mexico
How to incentivize cooperation/communication? correct answers Provide incentives to share information.
Use vendor managed inventory.
Mattel correct answers Collected their own daily demand data in real time by visiting stores
Collaborative Planning Forecasting & Replenishment example correct answers Canadian Tire has a 26-
week planned order stream that is updated weekly
How to shorten lead times correct answers Administrative lead = improve information technology
, Physical manufacturing lead = just in time production
Transportation lead = have suppliers geographically close by (on-shoring)
What to do if you cannot change the supply chain structure (ex. SMEs) correct answers Adapt and
manage: The Aspirin Rule - once demand changes, don't panic, just correct once
Beer Game Learning (3) correct answers Change the supply chain structure (communication &
cooperation, shorter lead times). If you can't change the structure, adapt and wait. Choose capable
suppliers/the best teammate.
Keep a smooth supply chain correct answers Don't offer significant sales/discounts, if you have to, limit
the quantity of items that can be bought at discounted prices. Don't do lumpsum orders, order evenly.
What is a supply chain? correct answers A network of facilities that procure raw materials (purchasing)
and distribute them. Managing inbound procurement and outbound logistics.
Supply Chain Network correct answers Suppliers -> Manufacturing -> Distribution -> Customers
Why did supply chains extend globally? correct answers To reduce labour costs (now the lowest labour
cost is in Ethiopia)
Vertical Integration correct answers The proportion of the supply chain that the company owns (make vs.
buy)
Why would an organization not want to outsource? correct answers Control (strategic process, intellectual
property, "messy" coordination). Example, Tesla manufactures their car batteries.
Procurement/Purchasing correct answers Are a high % of sales. Involves buying materials not internally
developed.
Vendor Selection correct answers Based on criteria such as location, quality, sustainability, price, on-time
delivery (among others)
