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OM 300 Ch 11

Terms in this set (19)

Supply chain management describes the coordination of all supply chain​ activities, starting with​ _______ and ending with​ _______.
Raw materials; satisfied customers
Which of the following statements is NOT one of the differentiation strategy​ decisions?
A. Gather and communicate market research data.
B. Minimize inventory to avoid product obsolescence.
C. Modular design to aid product differentiation.
D. Use buffer stocks to ensure speedy supply.
D
What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?
outsourcing
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?
vertical integration
What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship?
Blanket order
A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule.

This is an example of
Vendor-managed inventory
Supply chain managers outsource logistics to meet three​ goals:
drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.
Which of the following is a common measure of supply chain​ performance?
Percentage Invested in Inventory
Prior to embarking on supply chain​ design, why do operations managers first consider​ "make-or-buy" and outsourcing​ decisions?
Some products or services may be better or less expensive if obtained externally.
Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration?
keiretsu networks
Which of the following mitigation tactics could reduce economic​ risk?
purchasing contracts that address price fluctuations
As orders are relayed from​ retailers, to​ distributors, to​ wholesalers, to​ manufacturers, the fluctuations in order quantities increase at each step in the sequence. What is this​ called?
bullwhip effect
What is the term of shipping directly from the supplier to the end consumer rather than from the​ seller, saving both time and reshipping​ costs?
drop shipping
Which of the following is the purpose of a​ warehouse?
storage point, consolidation point, break-bulk point
Which three criteria should be considered when designing distribution networks to meet customer​ expectations?
rapid​ response, product​ choice, service
Which of the following remedies may reduce the bullwhip effect​?
share demand information throughout the supply chain
Which of the following is an advantage of faster​ shipping?
lower holding costs
Efficiency in a warehouse is primarily improved by
reducing worker travel time.
Weeks of Supply
Inventory/Sales Per week = Inventory/[cost of sales/52]
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