SCM Quiz

Mod-1 Introduction to Supply Chain Management

1. The Supply Chain Management refers to applying a total systems approach to managing the entire flow of information, material, and services from raw materials suppliers through factories and warehouses to the end customers 2. Supply chain is a sequence of suppliers, transporters, warehouses, manufacturers, wholesalers/distributors, retail outlets and final customers 3. A company can identify its supply chain by first selecting a particular product group or family, and trace the flow of materials and information from final customer backward through the distribution system to the manufacturer and then to suppliers and the source of raw material 4. The total time for material to travel through the entire supply chain can be 6months to an year. 5. SCM can reduce waiting time in various stages leading to reduction in inventory, increased flexibility, reduced costs, reduced cycle time and better deliveries 6. Companies have improved their internal operations and now find it necessary to consider relations with external customers and suppliers in supply chain to gain further improvements in operations 7. The goals of SCM is to reduce uncertainty and risks in the supply chain, positively affecting inventory levels, cycle time, processes and ultimately endcustomer service levels. 8. The focus of SCM is on system optimization 9. The design, planning and operation of a supply chain have a strong impact on overall profitability and success 10. SCM has become a hot competitive advantage as companies struggle to get the right stuff to the right place at right time 11. SCM build chain of suppliers that focus on both waste and maximizing value to the ultimate customer 12. The Objective of SCM is to maximize the overall value generated. 13. The value a supply chain generates is the difference between what the final product is worth to the customer and the costs the supply chain incurs in filling the customers request 14. Value is correlated with supply chain profitability the difference between revenue generated from customer and the overall cost across the supply chain. 15. There three decision phases of supply chain are: 1. Supply chain strategy or design 2. Supply chain planning and 3. Supply chain operation 16. Companys must take into account uncertainty in anticipated market conditions over next few years before making supply chain design 17. Supply chain planning decisions must consider the uncertainty in demand, exchange rates and competition over the planning horizon 18. Strategic or long-range decisions made by companies include: a. the location and capacities of production and warehousing facilities b. products to be manufactured or stored at various locations c. modes of transportation to be made available along different shipping legs and d. type of information system to be utilized

19. Supply chain planning includes decisions regarding: a. which market to be served from which locations b. the planned build up of inventories c. the subcontracting of manufacturing d. the replenishment and inventory policies to be followed e. policies regarding back up locations in case of stock out f. the timing and size of marketing promotions 20. Activities involved in Supply Chain Operations are: a. allocating individual orders to inventory or production b. setting dates for fulfilling orders c. generating pick lists at a warehouse d. allocating an order to a particular shipping mode or shipment e. Getting delivery schedules of trucks and f. placing replenishment orders 21. Two different ways of Process overview of a supply chain are: a. cycle view b. the push-pull view 22. Cycle view of supply chain process can be broken down into four processes cycles viz., a. customer order cycle, b. replenishment cycle, c. manufacturing cycle and d. procurement cycle 23. In pull process, execution is initiated in response to a customer order. 24. In push process, execution is in anticipation of customer order 25. The Supply chain macro process in a firm are: a. CRM b. ISCM c. SRM 26. CRM stands for Customer Relations Management 27. ISCM stands for Internal Supply Chain Management 28. SRM stands for Suppliers Relations Management 29. CRM includes marketing, pricing, sales, order management, and call center management. 30. ISCM includes planning of production, storage, preparation of demand supply plans and fulfillment of actual orders 31. SRM includes evaluation and selection of suppliers, negotiation of terms and communication regarding new products and orders with suppliers 32. A companys competitive strategy defines, relative to its competitors, the set of customer needs that it seeks to satisfy through its products and services. 33. A product development strategy specifies the portfolio of new products that a company will try to develop 34. A marketing and sales strategy specifies how the market will be segmented and how the product will be positioned, priced and promoted 35. A supply chain strategy determines: a.the nature of procurement of raw materials, b. transportation of materials to and from the company, c. manufacture of product or operation to provide the service, d. distribution of the product to the customer, along with any follow up service, and e. a specification of whether these processes will be performed in-house or outsourced 36. the logistical and cross functional drivers of supply chain performance are:

i. facilities, ii. inventory, iii. transportation, iv. information, v. sourcing, and vi. pricing 37. Inventory exists in supply chain in the form of RM, WIP, and FG that suppliers, manufacturers, distributors and retailers hold. 38. Safety inventory is the inventory which is held to meet the excess demand when demand exceeds expectation/estimation 39. the key to achieving strategic fit is a companys ability to find a balance between responsiveness and efficiency that best matches the needs to its target customer

Mod-2 Designing supply chain network

1. Distribution refer to steps taken to move and store a product from the supplier stage to a customer stage in the supply chain 2. RM and components are moved from suppliers to manufacturers, and finished products are moved from the manufacturer to the end consumer 3. Distribution is a key driver of overall profitability of a firm because it affects both the supply chain cost and the customer experience directly 4. Issues that are influenced by structure of distribution network: i. response time ii. product variety iii. product availability iv. customer experience, v. time to market , vi. order visibility vii. returnability 5. The two key decisions Managers must make when designing a distribution network are: i. will product be delivered to the customer location or picked up from a preordained site?, ii. will product flow through an intermediary/ intermediary location? 6. The six distribution network designs are: i. manufacturer storage with direct shipping ii. manufacturer storage with direct shipping and in-transit merge iii. distributor storage with package carrier delivery iv. distributor storage with last-mile delivery v. manufacturer/distributor storage with customer pick up vi. retail storage with customer pickup 7. Supply chain network design decisions are classified as follows: i.Facility role 2. facility location, iii. capacity allocation, iv. market and supply location 8. Factors influencing network design decisions are: i.Strategic factors, ii.Technological factors, iii.Macroeconomic factors, iv.Political factors, v.Infrastructure factors, vi.Competitive factors, vii.Customer response time and local presence, viii. Logistics and facility costs 9. Kasra Fedrows (1977) suggests following classification of possible strategic roles for various facilities in global supply chain network: i. offshore facility, ii. Source facility, iii. Server facility, iv. Contributor facility, v. out post facility, vi. Lead facility 10. Macroeconomic factors include taxes, tariffs, exchange rates, and other economic factors that are not internal to an individual firm. 11. Companies prefer politically stable countries and where rules of commerce and ownership are well defined 12. The key infrastructure include, availability of sites, labor, transportation terminal, rail service, proximity to sea and airports, highway access, and local utilities 13. Companies must consider competitors strategy, size, location when designing their supply chain network

14. Logistics and facility cost, incurred with in a supply chain change, as the number of facilities, their location, and capacity allocation is changed. 15. Inventory and facility costs increase as the number of facilities in a supply chain increase. 16. Transportation costs decrease as the number of facilities is increased 17. If the number of facilities increases to a point where inbound economies of scale are lost, then transportation cost increases 18. Global network design decisions are made in the following four phases: i. define supply chain strategy/ design ii.define the regional facility configuration iii. select a set of desirable potential sites iv. location choices

Mod-3 Designing and planning transportation networks

1. Transportation refers to the movement of product from one location to another as it makes its way from the beginning of the supply chain to the customer 2. Transportation is an important supply chain driver because products are very rarely produced and consumed in the Same location 3. The growth in international merchandise trade was more than three times the growth of the US economy over the same period 4. Supply chains use responsive transportation to centralize inventories and operate with fewer facilities 5. A shipper is the party that requires the movement of the product between two points of supply chain 6. The carrier is the party that moves or transports the product. 7. Two other parties have a significant impact on transportation: owners and operators of transportation infrastructure such as roads, ports, canals, and airports; and bodies that set transportation policy worldwide. 8. A carrier makes investment decisions regarding transportation equipment some times infrastructure, and makes decisions to maximize return from these assets 9. A shipper uses transportation to minimize total cost while providing an appropriate level of responsiveness to the customer 10. Transportation originates and ends at nodes and travels on links 11. For most modes of transportation, infrastructure such as roads, waterways and airports is required at the nodes and links, and is owned and managed as public good throughout the world 12. It is important that infrastructure be managed in such a way that monies are available for maintenance and investment in further capacity as needed 13. Transportation policy sets direction for the amount of national resources that go into improving transportation infrastructure 14. Transportation policy aims to prevent monopoly power, promote fair competition, and balance environmental, energy, and social concerns in transportation 15. Supply chain uses a combination of following modes of transportation: i. Air ii. Package carriers, iii. Truck, iv. Rail, v. Water, vi. Pipeline, vii. intermodal 16. The carriers primary objective is to ensure good utilization of its assets while providing customers with an acceptable level of service 17. Airlines have a high fixed cost in infrastructure and equipment

Labour and fuel costs are largely trip related and independent of the number of passengers or amount of cargo carried on a flight 18. An airline goal is to maximize the daily flying time of a plane and revenue generated per trip 19. Given the large fixed costs and relatively low variable costs, revenue management is done by varying seat prices and allocation of seats to different price classes 20. Presently airlines practice revenue management for passengers and much less for cargo 21. Air carriers normally move shipments under 500 pounds including high-value but light weight high-tech products 22. Key issues that air carriers face include identifying the location and number of hubs, assigning planes to routes, setting up maintenance schedules for planes, scheduling crews, and managing prices and availability at different prices 23. Package carriers use air, truck, and rail to transport time-critical smaller packages. 24. Package carriers are expensive and cannot compete on price for large shipments 25. With increase in JIT deliveries and focus on inventory reduction, demand for package carriers has grown 26. Package carriers are preferred mode of transport for e-business such as Amazon.com, Dell etc., to send small packages to customers 27. Companies use air-cargo carriers for larger shipments and package carriers for smaller and time-sensitive shipments 28. Package carriers have trucks that make local deliveries and pick up packages 29. Key issues in Package Carrier industry include the location and capacity of transfer points as well as information capability to facilitate and track package flow 30. Truck is more expensive than rail but door to door shipment and shorter delivery time is possible 31. TL have relatively low fixed costs and owning a few trucks is sufficient to enter business 32. TL pricing displays economies of scale with respect to the distance traveled 33. TL shipping is suitable for transportation between manufacturing facilities and warehouses or between suppliers and manufacturers 34. LTL operations are priced to encourage shipments in small lots, usually less than half a truck as it tends to be cheaper for larger shipments 35. A key to reducing LTL costs is the degree of consolidation that carriers can achieve for the loads carried 36. Key issues for the LTL industry include location of consolidation centers, assigning of loads of trucks and scheduling and routing of pickup and delivery. 37. Rail carriers incur a high fixed cost in terms rails, locomotives, cars, and yards 38. Any idle time, once a train is powered is very expensive because labor and fuel costs are incurred even though trains are not moving 39. Idle time occurs when trains exchange cars for different destinations and it also occurs because of track congestion 40. Labor and fuel together account for over 60% of railroad expense 41. Rail is suitable for very heavy, low value shipments that are not time sensitive. 42. water transport is ideally suited for carrying very large loads at low cost. 43. Trend in maritime trade world wide has been growth in containerization.

44. Delays at ports, customs, security and the management of containers used are major issues in global shipping 45. pipeline is primarily used for transport of crude petroleum, refined petroleum products and natural gas 46. Pipeline operations are optimized at about 80 to 90% pipeline capacity 47. Pipeline pricing usually consists of a fixed component related to shippers peak usage and a second charge relating to actual quantity transported 48. Intermodal transportation is the use of more than one mode of transport to move a shipment to its destination 49. Intermodal traffic has gown considerably with increased use of containers for shipping and rise in global trade. Containerized freight often uses truck/ water/ rail combination particularly for global freight 50. Key issues in intermodal transport involve exchange of information to facilitate shipment transfers between different modes because these transfers often involve considerable delay, hurting delivery time performance 51. Roads, seaports, airports, rail and canals are some of the major infrastructure elements that exist along nodes and links of a transportation network 52. Economists have argued for public ownership of transportation infrastructure assets but setting quasi-market prices to improve overall efficiency 53. It may be most effective to charge a congestion toll and use the money generated to improve the effectiveness of transportation infrastructure 54. Design options for transportation network include: i. Direct shipment network, ii. Direct shipping with milk runs, iii. All shipments via central DC with inventory storage, iv. All shipments via central DC with cross-dock, v. All shipments via central DC using milk runs, vi. Tailored network 55. All transportation decisions made by supplier in a supply chain network must take into account their impact on inventory costs, facility and processing cost, the cost of coordinating operations and level of responsiveness provided to customers

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SCM Quiz paper 13.4.12

1. The Supply Chain Management refers to applying a total systems approach to managing the entire flow of ________, ________, and_______ from ____ ________ _________ through _________and _________to the end customers. 2. A company can identify its supply chain by first selecting a particular ________group or_______, and trace the flow of materials and information from final customer backward through the_______ _______to the ___________and then to_________ and the source of____ ________ 3. The total time for material to travel through the entire supply chain can be __________ to an_______. 4. SCM can reduce_________ time in various stages leading to reduction in_________, _______ ________, ______ ______, _______ ______ time and better deliveries 5. Companies have improved their _______ ________and now find it necessary to consider relations with ________ _________and ________in supply chain to gain further improvements in operations

6. The goals of SCM is to reduce _________and ______in the supply chain, positively affecting_________ ______, _____ _____, _______and ultimately endcustomer service levels. 7. The______, ________and _________of a supply chain have a strong impact on overall _________and ________ 8. SCM has become a hot competitive advantage as companies struggle to get the _____ ______to the ______ _______at _____ ______ 9. The Objective of SCM is to _______the overall value generated. 10. The value a supply chain generates is the difference between what the final product is _______to the customer and the ______the supply chain incurs in filling the customers request 11. The three decision phases of supply chain are: 1. ______ ______ ______or _______2. _______ _______ ______and 3._______ ________ ________ 12. Supply chain planning decisions must consider the uncertainty in_______, _________ ______and __________over the planning horizon 13. Strategic or long-range decisions made by companies include: a. the ________and _________of production and warehousing facilities b. products to be__________ or ________at various locations c. modes of ___________to be made available along different_________ legs and d. type of__________ system to be utilized 14. Activities involved in Supply Chain Operations are: a. allocating individual orders to ________or ___________ b. setting dates for _________ ________ c. generating pick lists at a ________ d. allocating an order to a particular _______ _____or _______ e. Getting delivery schedules of _______and f. placing _____________orders 15. Cycle view of supply chain process can be broken down into four processes cycles viz., a.________ _______ _______, b._______ ________, c. _______ ___________and d. _________ _________ 16. In pull process, execution is initiated in ________to a customer order. 17. In push process, execution is in ____________of customer order 18. CRM includes________, _______, ______, ______ _________, and _____ _______ ______________. 19. ISCM includes_______ __ _________, ________, _______ ___ ________ _____ ________and ________ ___ ______ ________ 20. A companys competitive strategy defines, ______ __ ___ __________, the set of customer needs that it seeks to _______through its________ and_______. 21. A _______ _________strategy specifies the portfolio of new products that a company will try to develop 22. A ________and _______strategy specifies how the market will be segmented and how the product will be positioned, priced and promoted 23. A supply chain strategy determines: a.the nature of ___________of raw materials, b. ____________of materials to and from the company, c. ________________of product or___________ to provide the service, d. ____________of the product to the customer, along with any follow up service, and e. ____________of whether these processes will be performed in-house or outsourced

24. the logistical and cross functional drivers of supply chain performance are: i._______, ii.________, iii._________, iv.__________, v.________, and vi._______ 25. Inventory exists in supply chain in the form of___, ____, and___ that________, _____________, ___________and __________hold. 26. Safety inventory is the inventory which is held to meet the ______demand when demand exceeds _________/_________ 27. The key to achieving strategic fit is a companys ability to find a balance between ____________and __________that best matches the needs to its target customer 26. Distribution refer to steps taken to _____and _____a product from the ________ ______to a_______ ________ in the supply chain 27. Issues that are influenced by structure of distribution network: i. ______ _______ ii. _______ ________ iii. _______ ________ iv. __________ ___________, v. ____ to ______, vi._____ ________ vii. _____________ 28. The two key decisions Managers must make when designing a distribution network are: i. will _______ ___ _______to the customer location or ______ ____from a preordained site?, ii. will product flow through an_________/________ _________? 29. The six distribution network designs are: i. manufacturer storage with________ _______ ii. manufacturer storage with ________ _______and_________ ________ iii. distributor storage with ________ _________ ___________ iv. distributor storage with _______ ___________ v. manufacturer/distributor storage with _______ _________ ___ vi. retail storage with _________ _________ 30. Macroeconomic factors include_____, ______, ______ _____, and other _______ _______that are not internal to an individual firm. 31. The key infrastructure include,_______ ___ _______ , ______, __________ ________,_______ _______ , proximity to sea and airports, highway access, and local utilities 32. Companies must consider________ ________,_____ ,________ when designing their supply chain network 33. Inventory and facility costs ________as the number of facilities in a supply chain increase. 34. Transportation costs _________as the number of facilities is increased 35. Transportation is an important supply chain driver because products are very rarely _______and _________in the same location 36. The growth in international merchandise trade was more than _____times the growth of the US economy over the same period 37. A ________is the party that requires the movement of the product between two points of supply chain 38. The ________is the party that moves or transports the product. 39. Two other parties have a significant impact on transportation:________ and ____________of transportation infrastructure such as roads, ports, canals, and airports; and bodies that set transportation policy worldwide. 40. A ________makes investment decisions regarding transportation equipment some times infrastructure, and makes decisions to maximize return from these assets 41. A ________uses transportation to minimize total cost while providing an appropriate level of responsiveness to the customer 42. Transportation originates and ends at ______and travels on ______

43. For most modes of transportation, infrastructure such as roads, waterways and airports is required at the______ and_______, and is owned and managed as ______ ______throughout the world 44. It is important that infrastructure be managed in such a way that________ are available for __________and ___________in further capacity as needed 45. _____________ ________sets direction for the amount of national resources that go into improving transportation infrastructure 46. Transportation policy aims to______ _____ ________, ________ _______________, and_________ _______ ,_________ , and social concerns in transportation 47. Supply chain uses a combination of following modes of transportation: i. ___ii._______ ______, iii._______, iv._____, v._____, vi. Pipeline, vii. intermodal 48. The carriers primary objective is to ensure good ________of its assets while providing customers with an __________level of service 49. Airlines have a high _____ _______in infrastructure and equipment ________and _____ ______are largely trip related and independent of the number of passengers or amount of cargo carried on a flight 50. Given the large fixed costs and relatively low variable costs, revenue management is done by ______ ______ _______and allocation of seats to different______ ________ 51. Presently airlines practice revenue management for _________and much less for________ 52. Air carriers normally move shipments under______ pounds including high-value but_______ ______ high-tech products 53. Key issues that air carriers face include identifying the_______ and_______ ___ ________, assigning planes to_______, setting up _________ _______for planes,________ ________ , and________ ________ and availability at different prices 54. Package carriers use____, ______, and _____to transport time-critical smaller packages. 55. Package carriers are _______and ________compete on price for large shipments 56. Package carriers are preferred mode of transport for_________ such as Amazon.com, Dell etc., to send to customers 57. Companies use air-cargo carriers for _______ ___________and package carriers for_______ and _________________shipments 58. Package carriers have_______ that make local deliveries and _____ ___packages 59. Key issues in Package Carrier industry include the _______and ________of transfer points as well as __________ __________ to facilitate and track package flow 60. Truck is more expensive than rail but _____to______ shipment and________ delivery time is possible 61. TL have relatively_____ fixed costs and owning a_____ trucks is sufficient to enter business 62. TL pricing displays______ ___ ______ with respect to the distance traveled

63. LTL operations are priced to encourage shipments in_____ ____, usually less than _____ __ _____as it tends to be cheaper for larger shipments 64. Key issues for the LTL industry include_______ __ _________ ______, assigning of loads of trucks and ________and ________of pickup and delivery. 65. Rail carriers incur a high _____ ______in terms rails, locomotives, cars, and yards 66. Any idle time, once a train is powered is very________ because______ and _____ ______are incurred even though trains are not moving 67. Idle time occurs when trains________ cars for different destinations and it also occurs because of track________ 68. Rail is suitable for very______, low _____shipments that are not______ sensitive. 69. Water transport is ideally suited for carrying very ____ _____at____ cost. 70. Trend in maritime trade world wide has been growth in _____________. 71. pipeline is primarily used for transport of_______ ___________, ________ __________products and _______ ____ 72. Pipeline pricing usually consists of a fixed component related to________ ____ ________ and a second charge relating to actual ________transported 73. Intermodal traffic has grown considerably with increased use of containers for shipping and rise in______ _______. Containerized freight often uses _______/______/______combination particularly for global freight 74. Economists have argued for __________ _________of transportation infrastructure assets but setting____________ prices to improve overall efficiency 75. It may be most effective to charge a_______ _____ and use the money generated to improve the effectiveness of transportation infrastructure 76. All transportation decisions made by supplier in a supply chain network must take into account their impact on_______ _______, ______and_______ _______, the cost of________ ________ and level of ______________provided to customers 77. Outsourcing results in the supply chain function being performed by a ______ ________ 78. A firm________ a supply chain if it maintains ownership but moves the production facility offshore 79. A firm_________ if the firm hires an outside firm to perform an operation rather than executing the operation with in the firm Supply chain surplus is the difference between the______ __ ________ to the customer and the total cost of all supply chain activities involved in bringing the product to the customer