OM final exam
supply chain strategic importance - ANS--the coordination of all supply chain activities,
starting with raw materials and ending with a satisfied customer
-includes suppliers, manufacturers and/or service providers, retailers, and final
customer
-large portion of sales dollars spent of purchases
-supplier relationships increasingly integrated and long term
-improve innovation, speed design, reduce costs
-managing supplier relationships has added emphasis
supply chain risk - ANS--more reliance on supply chains means more risk
-fewer suppliers increase dependence
-compounded by globalization and logistical complexity
-vendor reliability and quality risks
-political and currency risks
risk and mitigation tactics - ANS--research and assess possible risks
-innovative planning
-reduce potential disruptions
-prepare responses for negative events
-flexible, secure supply chains
-diversified supplier base
shipping systems - ANS-trucking, railroads, airfreight, waterways, pipelines, multimodal
trucking - ANS--moves the vast majority of manufactured goods
-chief advantage is flexibility
railroads - ANS--capable of carrying large loads
-little flexibility though containers and piggybacking have helped with this
airfreight - ANS--fast and flexible for light loads
-may be expensive
waterways - ANS--typically used for bulky, low value cargo
-used when shipping cost is more important than speed
pipelines - ANS-used for transporting oil, gas, and other chemical products
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