OM 300 Exam 3- Nunnelly Questions and
Answers Complete solution.
Define |Supply |Chain |Management. |- |ANS |-The |objective |is |to |structure |the |supply |chain |to |
maximize |its |competitive |advantage.
What |are |the |components |of |supply |chain |management? |- |ANS |-Suppliers,
|manufacturers/service |providers, |distributors, |wholesalers, |retailers, |and |final |customers.
What |is |the |strategic |importance |of |the |supply |chain? |- |ANS |-The |coordination |of |all |supply |
chain |activities, |starting |with |raw |materials |and |ending |with |a |satisfied |customer.
What |are |the |6 |sourcing |strategies? |- |ANS |-Many |suppliers- |commodity |products, |purchase |
based |on |price |while |suppliers |compete |with |one |another.
Few |suppliers |- |long |term |relationships |with |few |suppliers.
Vertical |integration- |developing |the |ability |to |produce |goods |or |services |previously |purchased.
Joint |ventures- |formal |collaboration |to |enhance |skills, |secure |supply, |and |reduce |costs.
Keiretsu |networks- |middle |ground |between |few |suppliers |and |vertical |integration.
Virtual |companies- |rely |on |a |variety |of |supplier |relationships |to |provide |services |on |demand.
What |is |the |range |of |supply |chain |risks |that |exist? |- |ANS |-More |reliance |on |supply |chains |
means |more |risk
Fewer |suppliers |increase |dependence.
Vendor |reliability |and |quality |risks
Political |and |currency |risks.
, What |are |the |opportunities/issues |for |management |of |integrated |supply |chains? |- |ANS |-
Opportunities:
Accurate |"pull" |data
Lot |size |reduction
Single |stage |control |of |replenishment |(one |manager |in |charge |of |ordering)
Vendor |managed |inventory |(VMI)
Issues:
Local |optimization |can |magnify |fluctuations.
Incentives |push |merchandise |into |supply |chain |for |sales |that |have |not |occurred
Large |lots |reduce |shipping |and |production |costs |but |do |not |reflect |actual |sales
What |is |the |bullwhip |effect? |- |ANS |-It |occurs |when |orders |are |relayed |through |the |supply |
chain |with |fluctuations |increasing |at |each |step.
Creates |unstable |production |schedules, |expensive |capacity |change |costs, |underutilization, |
longer |lead |times
What |are |the |four |critical |points |in |logistics |management? |- |ANS |-Point |of |origin
Warehousing
Transit
Destination
What |is |a |trucking |system? |- |ANS |-Moves |the |vast |majority |of |manufactured |goods |with |the |
advantage |of |flexibility.
What |is |a |railroad |system? |- |ANS |-Capable |of |carrying |large |loads |with |little |flexibility |through |
containers |and |piggybacking.
Answers Complete solution.
Define |Supply |Chain |Management. |- |ANS |-The |objective |is |to |structure |the |supply |chain |to |
maximize |its |competitive |advantage.
What |are |the |components |of |supply |chain |management? |- |ANS |-Suppliers,
|manufacturers/service |providers, |distributors, |wholesalers, |retailers, |and |final |customers.
What |is |the |strategic |importance |of |the |supply |chain? |- |ANS |-The |coordination |of |all |supply |
chain |activities, |starting |with |raw |materials |and |ending |with |a |satisfied |customer.
What |are |the |6 |sourcing |strategies? |- |ANS |-Many |suppliers- |commodity |products, |purchase |
based |on |price |while |suppliers |compete |with |one |another.
Few |suppliers |- |long |term |relationships |with |few |suppliers.
Vertical |integration- |developing |the |ability |to |produce |goods |or |services |previously |purchased.
Joint |ventures- |formal |collaboration |to |enhance |skills, |secure |supply, |and |reduce |costs.
Keiretsu |networks- |middle |ground |between |few |suppliers |and |vertical |integration.
Virtual |companies- |rely |on |a |variety |of |supplier |relationships |to |provide |services |on |demand.
What |is |the |range |of |supply |chain |risks |that |exist? |- |ANS |-More |reliance |on |supply |chains |
means |more |risk
Fewer |suppliers |increase |dependence.
Vendor |reliability |and |quality |risks
Political |and |currency |risks.
, What |are |the |opportunities/issues |for |management |of |integrated |supply |chains? |- |ANS |-
Opportunities:
Accurate |"pull" |data
Lot |size |reduction
Single |stage |control |of |replenishment |(one |manager |in |charge |of |ordering)
Vendor |managed |inventory |(VMI)
Issues:
Local |optimization |can |magnify |fluctuations.
Incentives |push |merchandise |into |supply |chain |for |sales |that |have |not |occurred
Large |lots |reduce |shipping |and |production |costs |but |do |not |reflect |actual |sales
What |is |the |bullwhip |effect? |- |ANS |-It |occurs |when |orders |are |relayed |through |the |supply |
chain |with |fluctuations |increasing |at |each |step.
Creates |unstable |production |schedules, |expensive |capacity |change |costs, |underutilization, |
longer |lead |times
What |are |the |four |critical |points |in |logistics |management? |- |ANS |-Point |of |origin
Warehousing
Transit
Destination
What |is |a |trucking |system? |- |ANS |-Moves |the |vast |majority |of |manufactured |goods |with |the |
advantage |of |flexibility.
What |is |a |railroad |system? |- |ANS |-Capable |of |carrying |large |loads |with |little |flexibility |through |
containers |and |piggybacking.
