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OM 300 Exam 3 Chilcutt – Questions With Precise Answers (Pass!)
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OM 300 Exam 3 Chilcutt – Questions With Precise Answers (Pass!)
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OM 300 Exam 3 Chilcutt – Questions With PreciseAnswers (Pass!)
Activities performed as part of supply chain management Right Ans - 1.
suppliers
2. distributors
3. warehousing and inventory
4. transportation vendors
5. order fulfilment
6. credit and cash transfers
7. accounts payable and receivable
8. sharing customer, forecasting, and production information
Outsourcing Right Ans - -transfers traditional internal activities and
resources of a firm to outside vendors
-utilizes the efficiency that comes with specialization
-firms outsource:
information technology, accounting, legal, logistics, & production
6 sourcing strategies Right Ans - 1. negotiating with many suppliers
2. long-term partnering with few suppliers
3. vertical integration
4. joint ventures
5. Keiretsu
6. virtual companies that use suppliers on an as needed basis
Supply chain Right Ans - the network of activities that deliver a product or
service to the customer.
Activities within the supply chain Right Ans - 1. obtaining raw materials
2. transforming raw materials into basic finished goods
3. further processing of basic finished goods into customized products that are
sold
Supply chain echelon/tiers Right Ans - -the lower the tier level, the closer
the level to the customer
,Objective of supply chain management Right Ans - build a chain of
suppliers that focuses on maximizing value to the ultimate customer
Supply Chain Management Right Ans - The business function that
coordinates all of the network links
-coordinates movement of goods through supply chain from suppliers to
manufacturers to distributors
-promotes information sharing in the supply chain, such as forecasts, sales
data, & promotions
The Supply Chain's Strategic Importance Right Ans - supply chain
management is the integration of the activities that:
-procure materials and services
-transform them into intermediate goods and final products, &
-deliver them through a distribution system
Many Suppliers Right Ans - -Commonly used for commodity products
-Purchasing is typically based on price
-Suppliers compete with one another
-Supplier is responsible for maintaining necessary levels of technology,
expertise, forecasting abilities, as well as cost, quality, and delivery
competencies
Few Suppliers Right Ans - -Buyer forms longer term relationships with
fewer suppliers
-Create value through economies of scale and learning curve improvements
-Suppliers more willing to participate in JIT programs and contribute design
innovations and technological expertise
-Cost of changing suppliers is huge
Trade secrets and other alliances
Vertical Integration Right Ans - -developing the ability to produce goods or
services previously purchased
-integration may be forward, towards the customers, or backwards, towards
suppliers
-can improve cost, quality, and inventory but requires capital, managerial
talent, and demand
-risky in industries with undergoing technological changes
, Joint venture Right Ans - -formal collaborations:
enhance skills, secure supply, & reduce costs
-cooperate without diluting the brand or conceding competitive advantage
Keiretsu Networks Right Ans - -part collaboration, part purchasing from
few suppliers, and part vertical integration
-supplier becomes part of the company coalition
-often provide financial support for suppliers through ownership or loans
-members expect long-term relationships and provide technical expertise and
stable quality production
-may extend through several tiers of the supply chain
Virtual Companies Right Ans - -Rely on a variety of good, stable
relationships to provide services on demand
-Exceptionally lean performance, specialized management expertise, low
capital investment, flexibility, and speed
Supply chain risk Right Ans - -More reliance on supply chains means more
risk
-customer and its suppliers are more dependent on each other as the number
of suppliers used decreases
-risk is compounded by globalization and logistical complexity
Types of risk Right Ans - Traditional Concerns:
-vender reliability
-vendor quality
Concerns Due To Globalization:
-increase shipping times =>less reliable logistics
-tariffs and quotas impacting companies ability to do business
-more complex information flows
-greater political/currency risks
Mitigation Tactic (supplier fails to deliver/supplier with quality problems)
Right Ans - -use multiple suppliers, contract with penalties, subcontractors on
retainer, pre-planning
-improver supplier selection process, require supplier certification, train and
monitor suppliers
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