+
Related Flashcards
Cards In This Set
| Front | Back |
|
What is a network of facilities and activities that performs the functions of product development, procurement of materials from vendors, the movement of materials between facilities, manufacturing of products, the distribution of finished goods to customers, and after-market support for sustainment?
|
Supply Chain
|
|
What is concernced with the effective management and optimization of procurment, manufacturing, distribution, logistics and customer service activities and the linkages existing among them?
|
Supply chain mgmt
|
|
What is the objective of supply chain mgmt?
|
To synchronize the requirements of the final customer with the flow of materials and information along the supply chain in order to reach between high customer service and cost
|
|
What are the four characteristics of SCM?
|
Treats the supply chain as a single entity, not a series of autonomous functions or segements
supply is considered the shared objective of every function or segment in the chain and SCM relies on strategic decision making
it embraces the integration of systems throughout the chain, which goes beyond the superficial contact that is traditional
?
|
|
What are the benifits of supply chain mgmt?
|
Faster inventory turnover
less warehouse space needed
better working capital and cash flow mgmt
fast reponse to sales surges and fads
less safety stock, and prices average 14% lower than competitors
|
|
What are the 4 main causes of the bullwhip effect
|
Demand forcast updating
order batching
price fluctuations
rationing and shortage gaming
|
|
How do you counteract the bullwhip effect?
|
Change the way suppliers forecast product demand by making this information from the final seller level available to all levels of the supply chain
eliminate order batching
stabilize prices
eliminate gaming
|
|
What is the best way to improve SC
|
To reduce the total replenishment time and to feed back actual demand information to all levels as quickly as possible
|
|
What are the requirments for a successfull supply chain?
|
Trust between vendor and customer
long term relationships
information sharing
individual strength of orginizations
|
|
What is inventory
|
A stock of good that is held for future use
|
|
Why is inventory mgmt important?
|
Inventory represents the largest investment in assets for most manufacturers and merchandisers
inventories affect customer service, utilization of facilities and equipment, capacity and effieciency of labor. (therefore the plans for soncerning the aqusition and storage of materials or inventories are vital to the production system
inventory carrying costs normally represent one of the highest costs of the logistics system
|
|
Name the types of inventories
|
Raw materials
work-in-process
finished goods
tools and supplies
|
|
What are the reasons for holding inventory?
|
To meet expected customer demand
to facilitate production activities
to decouple internal operations
to provide a hedge against stockouts, price incr
to take advantage of quantity discounts
|
|
What are the costs of holding inventory?
|
Capital cost(interest)
shrinkage(lost or stolen)
obsolescence( loss of value)
insurance
deterioration
|
|
What are the main objectives of inventory mgmt?
|
Maximize customer service level
minimize total costs associated with inventory
|
