SCM 300 Exam 1
3 branches of supply chain - Answer- procurement (purchasing), operation, logistics, reverse
Procurement (purchasing) - Answer- the branch of supply chain where deals happen, negotiations for the best price on materials, equipment, goods, and services. acquiring materials and p...
Procurement (purchasing) - Answer- the branch of supply chain where deals
happen, negotiations for the best price on materials, equipment, goods, and
services. acquiring materials and placing orders.
Operations - Answer- the branch responsible for making business processes
effective and efficient (help create high quality products/services using fewest
resources possible).
Logistics - Answer- is concerned with transportation, finding the right partners or best
ways to get the product or service from origin to consumption.
Key variable in elementary inventory calculations - Answer- Q - lot size
D - annual demand
C - cost to purchase one unite
H - cost to hold on unit of inventory in one year
S - cost to place a single order
Annual cost to purchase inventory - Answer- DC
Annual Holding Cost (AHC) - Answer- (Q/2)*H
Annual Ordering Cost (AOC) - Answer- (D/Q)S
Equation for total cost - Answer- DC + AHC + AOC
Economic Order Quantity (EOQ) - Answer- the lot size that minimizes total annual
inventory holding and ordering costs, making it the optimal lot size
= SQRT (2DS/H)
if a manager is looking to minimize inventory costs and maximize total annual
savings then he would calculate optimal lot size through this formula.
Cycle time - Answer- the pace at which product must move through the assembly
line in order for the assembly line to keep pace with demand.
= Operating Time/D
Theoretical Minimum number of workstations calculations (TM) - Answer- total task
time / cycle time
3 Supply Chain Flows - Answer- Money, material, information
downstream supply chain - Answer- the direction that points towards the end
customer
, Ex: delivering goods from a manufacturer to a distributor. main suppliers s1 working
to get parts prepared in time for manufacturer.
Upstream Supply Chain - Answer- going backwards, moving towards the supplier.
ex: finding ways to maximize efficiency coming back. see if all the boxes that have
arrived at the retailer are empty and not damaged to send them beck for reuse.
developing relationships with the companies first tier supplier to enhance and better
communication.
Supply chain competitive priorities - Answer- cost, quality, speed, flexibility
For example, a fast food restaurant will customize these priorities differently from a
higher up restaunt
Quality - Answer- design, reliability, consistency, materials or fabrics
speed - Answer- delivery, on time, innovative time
flexibility - Answer- customization, size of orders, design
Types of inventory - Answer- -raw materials
-work in process
-finished goods
-maintenance, repair, and operating
-market inventory
-safety stock (buffer stock)
-anticipation inventory
-pipeline inventory
-inventory visibility
Raw materials - Answer- materials that will be used to create an item or a service.
Have not yet begun
their manufacture to create them into a good or a service.
Work in Process (WIP) - Answer- Items that have gone through the manufacturing
but have not been
completed. Example, a partially assembled shovel.
Finished Goods - Answer- items that have completed manufacturing and are ready
for shipment.
Maintenance, Repair, and Operations (MRO) - Answer- Items that are not intended
for the Finished
goods but are important to the day to day operations of the business. (Examples,
Desks,
papers, computers, cleaning material for the office, and so on)
Market Inventory - Answer- Inventory readily available on the shelfs, like "Ragu
Tomato sauce."
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