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Chilcutt OM 300 Exam 3 With Complete Solutions
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Chilcutt OM 300 Exam 3 With CompleteSolutions
supply chain - correct answers the network of activities that deliver a product or service to the customer.
activities within the supply chain - correct answers 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 - correct answers -the lower the tier level, the closer the level to the customer
objective of supply chain management - correct answers build a chain of suppliers that focuses on maximizing value to the ultimate customer
Supply Chain Management - correct answers 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 - correct answers 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
activities performed as part of supply chain management - correct
answers 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 - correct answers -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 - correct answers 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
Many Suppliers - correct answers -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 - correct answers -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 - correct answers -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 - correct answers -formal collaborations:
enhance skills, secure supply, & reduce costs
-cooperate without diluting the brand or conceding competitive advantage
Keiretsu Networks - correct answers -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 - correct answers -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 - correct answers -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 - correct answers Traditional Concerns:
-vender reliability
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