Bullwhip effect
: Information (orders) going back through the supply chain are distorted and
amplified
How to improve the supply chain
: Communication and cooperation, and shorten lead times (allows faster
response)
On-shoring
: Local production near demand; reduces costs, length of lead t...
1 | P a g e OPMA 317 Final Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+ Bullwhip effect 🗸🗸🗸 : Information (orders) going back through the supply chain are distorted and amplified How to improve the supply chain 🗸🗸🗸 : Communication and cooperation, and shorten lead times (allows fa ster response) On-shoring 🗸🗸🗸 : 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 2 | P a g e Supply Chain 🗸🗸🗸 : 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 🗸🗸🗸 : "make or buy"; the portion of the supply chain that the company o wns; companies may not outsource to keep control of the process or intellectual property Green Sourcing 🗸🗸🗸 : An environmentally friendly supply chain; makes a supplier an order winner and cuts down on costs Types of purchasing 3 | P a g e 🗸🗸🗸 : 1. Centralized P urchasing -> 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 🗸🗸🗸 : Retailer -> unit cost savings, lower holding costs, lower ordering costs, less supply uncertain ty Manufacturer -> known demand Vendor Managed Inventory (VMI) 🗸🗸🗸 : Vendors (manufacturers) manage the customer's inventory of the products they supply
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