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Exam 2 Supply Chain Study Guide

Terms in this set (19)

What is the difference between Truckload and Less-Than-Truckload?
Truckload= move full truckloads.
Less-Than-Truckload= move pallet quantities.
What is the difference between Solo Truckload and Team Truckload?
Solo= Single driver
Team= Two drivers, one sleeps while the other drives.
Name the primary type of unit moved for water, rail, truckload, LTL, and airfreight transportation modes. What are the expected transit times for each of these modes?
Water= container. 500 miles/day.
Rail= container. 500 miles/day
Truckload= Trailer. 500 miles/day. 1000 miles/day if team.
LTL= Pallet. 400 miles/day.
Air= Box. Domestic= Next day. International= 3 day service.
You have 15,000 pounds of product to send to a customer 1000 miles away. If loaded on a truck it would take up 1/4 of a trailer. If the TL rate is $1.22/mile and LTL rate is $12 per hundredweight, what is the cost to ship TL? What is the cost to ship LTL?
TL= 1000*1.22= $1,220.
LTL= ($12/100)*15,000= $1800.
You have a shipment that weighs 10,000 pounds and occupies ¼ of a truckload. You need to calculate the total cost to ship it through consolidation and to the end customer. The LTL rate to ship it to consolidation is $10/hundred-weight and consolidation charges $0.05/pound to consolidate the freight. The distance from the consolidator to the end customer is 1000 miles and the truckload carrier charges $1.70/mile to move the freight.
Shipper to Consolidator cost= ($10/100 pounds)*10,000 pounds= $1000
Consolidator cost= ($0.05/pound)*10,000 pounds= $500
Consolidator to Customer cost= ($1.70/mile)(1,000 miles)(1/4 truckload)= $425
Total cost= $1000
+ 500 + 425 = $1925
What is Landed Cost? What is required when comparing two different Landed Costs?
The cost of a product plus all costs driven by logistics activities, such as transportation, warehousing, handling, customs fees, etc.

Make sure they are for the same destination.....origins could be different.
Five features of a service package
1. supporting facility
2. facilitating goods
3. information
4. explicit services
5. implicit services
What happens when there is too much capacity in a service business? What happens when there isn't enough capacity in a service business?
Too much- generates excessive costs.
Not enough- leads to lost customers.
What is a poka-yoke?
procedures that block the inevitable mistake from becoming a service defect ("avoid mistakes")....common in factories.
What are five ways to manage queues?
1. Segment the customers.
2. Train your servers to be freindly.
3. Inform your customers fo what to expect.
4. Try to divert the customer's attention when waiting.
5. Encourage customers to come during slack periods.
Describe each of these qualitative forecasting methods: market surveys, life-cycle analogy method, panel consensus forecasting, and the Delphi method.
...
Describe the benefits of using a Last Period forecasting model.
*Easy to use.
*No data analysis necessary.
*Easy to understand.
What is the three-period moving average for July's demand?
Moving Average= (140+206+180)/3= 175.3
What is the five-period moving average for July's demand.
Moving Average= (215+194+140+206+180)=187
Use a weighted moving average with Wt-1 = 0.7, Wt-2=0.2, and Wt-3=0.1 to forecast demand for July.
Weighted moving average= 0.7180+0.2206+0.1*140=181.2
The 5 steps to Collaborative Planning, Forecasting and Replenishment.
1. Creation of a front-end partnership agreement.
2. Joint business planning.
3. Development of demand forecasts.
4. Sharing forecasts.
5. Inventory replenishment.
The key concepts of a Total Quality Management program
-Quality is defined by customer.
-Top-tier management responsible for process.
-Analysis and data drive improvements.
-Continuous and organization- wide process.
The 4 different costs of quality
1. Appraisal costs.
2. Prevention costs.
3. Internal failure costs.
4. External failure costs.
What does DMAIC stand for
Define the goals of the improvement activity.
Measure the existing process.
Analyze the process.
Improve the process.
Control the new process.
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