Exam 10: Supply Chain Design

The purpose of supply chain management is to synchronize a firm's processes with those of its suppliers and customers.

________ is the synchronization of a firm's process with those of its suppliers and customers to match flow of materials,services and information with demand.

Shipments of Product Q from a plant to a wholesaler are made in lots of 400.The wholesaler's average demand for Q is 150 units per week.Lead time from plant to wholesaler is 5 weeks.The wholesaler pays for the shipments when they leave the plant.The plant has proposed several new lead time and lot size options to the wholesaler (see table below).If the wholesaler's goal is to minimize total cycle plus pipeline inventories,which option should the wholesaler select?

________ uses a firm's flexible processes to generate a wide variety of personalized services or products at reasonably low costs.

Inventory turnover is obtained by dividing the average aggregate inventory value by sales per week at cost.

The finished goods of one firm may actually be the raw materials for another firm.

The purpose of supply chain design is to shape a firm's supply chain to meet the competitive priorities of its operations strategies.

________ is the process of using members of the distribution channel as if they were assembly stations in the factory.

When a company uses ________ ,it does not perform some processes itself,but instead pays suppliers or distributors to perform those processes and provide needed services and materials.

________ is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost.

Use the following scenario to answer the questions below. You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit.You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year.The following table summarizes the details of this make versus buy decision. -Refer to the instruction above.What is the break even quantity between buying and making?

________ involves locating the stock closer to customers at a warehouse,distribution center,or retailer.

Rome Corporation is a supplier of ball bearings.Because of the specialized manufacturing process employed,considerable work-in-process and raw material inventories are created.The current inventory levels are $1,500,000 and $3,775,000,respectively.In addition,finished goods inventory is $3,500,000,and sales (at cost)for the current year are expected to be about $28 million.Assume they operate 50 weeks per year. a.What is their total inventory (measured as weeks of supply)? b.What is their inventory turnover?

Padco averages $15 million worth of inventory in all of its worldwide locations.They operate 51 weeks a year and each week average $3 million in sales (at cost).Their inventory turnover is:

Use the following scenario to answer the questions below. A company must decide if it will make or buy an item it needs.The company can make the item for $10 / unit,but must spend $15,000 per year in tooling to do so.An outside firm has quoted a total price of $12 / unit to supply the quantity required. -Refer to the instruction above.What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units)?

Maple Leaf,Inc. ,a television manufacturer,would like to reduce its inventory.To this end,you are asked by the operations manager to assess its inventory level.You have the following information on average inventories from last year's financial statement: Raw materials $2,500,000 Work-in-process $1,000,000 Finished goods $ 800,000 In addition,the cost of goods sold last year (50 weeks)was $15 million.What was the inventory turnover?

Compare and contrast efficient versus responsive supply chains.

Which of the following is NOT identified in the text as a competitive advantage of a mass customization strategy?

When a company acquires more channels of distribution,such as its own distribution centers and retail stores,it is using ________.

Increasing the percentage of on-time deliveries to customers actually reduces the total revenue of a firm.