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SCM 300 Arizona State University - Exam 1 Study Guide 2024
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SCM 300 Arizona State University - Exam 1 Study Guide
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SCM 300 Arizona State University - Exam1 Study Guide
Supply chain management - Answer -extracting materials from the ground, selling them
to raw material manufacturers, turn raw materials into materials that are usable by
component manufacturers, then final manufacturers make and sell intermediate
components, the final manufacturers assemble finished products and sell them to
wholesalers or distributors, resell them to retailers who sell to end customers
Thus, the series of companies that eventually make products and services available to
consumers, including all of the functions enabling the production, delivery, and recycling
of materials, components, end products, and services, is called a supply chain
Primary goals of SCM - Answer -sustainable long term profits and maximize ROI
Value - Answer -customer perspective-what do I get?/what is the price?
Productivity - Answer -organizational perspective-outputs/inputs
Shigeo Shingo's-7 Types of Waste - Answer -1. Defects
2. Overproduction- production used to mask shortcomings
3. Transportation- no added value
4. Motion- movement of employees and machines
5. Waiting- wasted resources during waiting
6. Inventory (not providing a return)- excess inventory is not providing a return
7. Over processing- more work than required is done in creating a service/good
Competitive Priorities - Answer -cost, quality, speed/time, and flexibility
Business models - Answer -a mechanism by which a business intends to generate
revenue and profits. Summary of how a company plans to serve its customers at a
strategic level
B2C - Answer -business to consumer- Amazon, Best Buy, Dillards
B2B - Answer -business to business- DHL, Boeing, Consulting/marketing agencies
Both B2B and B2C - Answer -Apple, Dell, Ford, and Verizon
,Brick and Mortar- land based commerce only
Internet retailer only- Amazon
Click and Mortar - Answer -both land based and internet (Best Buy, Barnes and Noble)
P&G Example - Answer -3 priorities= reliable service, agile, demand driven supply, and
affordable differentiation
Vertically integrated firm - Answer -a firm whose business boundaries include one-time
suppliers and/or customers
What is occurring at many of these firms today is an effort to par down the organization
to focus more on core capabilities while trying to create alliances or strategic
partnerships with suppliers, transportation and warehousing companies, distributors,
and other customers who are good at what they do. This team approach to making and
distributing products and services to customers is becoming the most effective and
efficient way for businesses to stay successful -and is central to the practice of SCM.
Supplier Management - Answer -this means getting your firm's suppliers to do what you
want, and there are a number of ways to do this. This involves assessing your suppliers'
current capabilities and then figuring out how to improve them
Supplier Evaluation - Answer -determining the capabilities of suppliers. This occurs both
when potential suppliers are being evaluated for a future purchase and when existing
suppliers are periodically evaluated for performance purposes
Strategic partnerships - Answer -organizations creating alliances, one of the foundations
of SCM
Reverse logistics activities - Answer -along the supply chain, intermediate and end
customers may need to return products, obtain warranty repairs, or may just throw
products away or recycle them
Focal firm - Answer -end product manufacturer, Ex. Coca-Cola, Boeing, General Motors
1st tier suppliers/customers - Answer -- First tier supplier supplies a business directly.
(EA Sports distributes Madden to Best Buy; EA is a 1st tier supplier to Best Buy).
2nd tier suppliers/customers - Answer -the suppliers' suppliers and the customers'
customers. (Hershey's buys cocoa from an American company who bought it from a
Brazilian company, The Brazilian company is a 2nd tier supplier to Hershey's).
Grebson Example - Answer -Grebson is experiencing the bullwhip effect, meaning there
is a problem in safety stock, forecasting, and production problem. Grebson is not sure
, on how many units they demand, they ultimately affects the supply chain in a major
way.
Business process re-engineering (BPR) - Answer -the radical rethinking and
redesigning of business processes to reduce waste and increase performance, was
introduced in the early 1990s and was the result of a growing interest during this time in
the need for cost reductions and a return to an emphasis on the key competencies
3PLs (third party logistics providers) - Answer -firms use them to ensure a continuous,
uninterrupted supply of goods
Wal-Mart Example-
-inventory turnover has risen from 4.1 to 7.6 from 1990-2005
-Wal-Mart has no work-in-process or finished goods inventories, all purchased materials
-Developed cross docking, a truckload of an incoming item goes not into storage but
directly into multiple trucks in small lots for immediate transfer to retail stores
-Wal-Mart developed the best SCM IT system saving them millions of dollars, increasing
profit margins
Supplier evaluation - Answer -determining the current capabilities and them figuring out
how they need to improve them
Supplier certification - Answer -allows buyers to assume the supplier will meet certain
product quality and service requirements covered by the certification, thus reducing
duplicate testing and inspections and they need for extensive supplier evaluations
MRP - Answer -firms use this software to manage their inventory
Inventory visibility - Answer -allows companies to be informed about their inventory in
order to make their supply chain as effective as possible
Demand management - Answer -used to minimize costs, strategies and systems with
the objective of matching demand to available capacity either by improving production,
scheduling, curtailing demand, using a back order system, or increasing capacity
-If demand does not materialize as forecasted, then the firm is left with either too much
inventory (or service capacity) or not enough.
JIT (just-in-time production system) - Answer -results in faster delivery times, lower
inventory levels, and better quality. Actual orders provide a time of when the goods
should be manufactured. Sometimes called the Toyota Production System.
Global Perspective Example - Answer --Financial supply chain is the key to a
corporation and banks survival
-Means to further eliminate paper from the world of international trade
-An outgrowth of the long established concept of the physical supply chain in the trade
business
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