Lecture 1-4 Revision Question and Answer
Topic
Question
Suggested Answer ( 981 words, 25 questions, ranges 25-50 words per answer)
1.1
Explain the concept of
Logistics is the process by timing and positioning inventory. Tasks include: (1) Order
logistics.
management (2) inventory (3) transportation (4) warehousing (5) material movement
(6) packaging.
Compare and contrast supply
Supply chain management consists of firms collaborating to leverage strategic
chain
positioning with trading partners in order to increase competitive advantage and to
(SC) management and
SC operations management
increase operational efficiency.
Supply chain operations management involves different departments of
individual firms plus the link with trading partners and customers.
1.1.7
What are the components of
Figure 1.1.7 is an important diagram. It covers: Logistics Management: covering raw
logistics management
materials, in-process inventory and finished goods;
Logistics activities: covering 12 activities of customer service, demand forecasting,
distribution (e.g. through distributor), material handling, customer order processing,
service (maintenance), warehouse selection, warehouse setup, packaging, purchasing,
transportation, return goods handling, concept of green environment scrap disposal.
1.2
Is
ompanies like Cathay
Cathay Pacific is part of a supply chain network as Cathay Pacific depends on supply
Pacific a supply chain
from other companies such as air catering in Hong Kong, and aircraft maintenance
company?
company which provides the aircraft maintenance supplies (although Cathay Pacific
and Hong Kong Aircraft engineering company and Cathay Air caterer may be in the
same group)
Is British Airways Catering a
British Airways Catering (BAC) is a company (although a subsidiary of BA) by
supply chain copany
itself, it can be called a supply chain company (supplier) as it supplies catering to
other flights which may stop over at London's Heathrow or Gatwick airport.
1.2.3
What are the 4 key attributes of
1.
The alignment of supply chain design with product characterstics.
a lean supply chain
2.
Supplier to participate in logistics and material flow.
3.
Supplier involvement in product design and development.
4.
Information flow between company and supplier to be based on computerized
information system.
1.2.5
What does a supply chain look
In a supply chain, the customer gets the goods from a manufacturer and the
like? Give an example.
manufacturer gets the parts and raw material from their suppliers, with each lower
level supplier supplying a smaller portion of the raw material.
An example is a computer manufacturer which gets parts (like motherboard) from
other supplier (such as the ASUS motherboard), where the supplier also gets raw
material from other companies (such as getting the RAM and the sound card to be
build on board the motherboard).
1.2.7
1.2.10
What is a focal firm (prime
An example focal firm is Dell computer which is the OEM (original equipment
firm, or OEM) in a global
manufacturer) which assembles computers through supply of raw materials from
supply chain?
suppliers. The focal firm and suppliers together forms a global supply chain.
Why are 3PL (third party
3PL are experts in in efficiently providing the service, such as handling the
logistics) companies
movement of goods through operating their fleet of transportation facility (such as air
like
FedEX successful
cargo flight, trucks, and other delivery channel). They can do it in much less cost and
less time than the company can do themselves.
Lecture 1-4 Revision Question and Answer
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Lecture 1-4 Revision Question and Answer
1.2.14
What is a supply chain hub
A company that manages interaction between companies and their suppliers. The
company and their suppliers join the supply chain hub so that the focal firm works
with the hub rather than with hundreds of suppliers for raw material supply.
1.3
1.3.1
What are tools in JIT
Workflow, Robot
What is Kanban production
It is the Toyota production system TPS, developed by Toyota Motor Company during
system in the factory
1950-60; with objective that parts and materials should be supplied at the moment
production process?
they are needed
What is logistics within the
In the context of supply chain management, logistics exists to move and position
context of supply chain
inventory to achieve”
- desired time, place, and possession benefits
management?
Compare and Contrast Push
Push system push out inventory in advance of demand.
system and PULL system of
Disadvantages of Push System are:
inventory management, and
1. inflated inventory level; 2. obsolete inventory; 3. lower inventory turnover
their advantages.
Pull system pull inventory through the supply chain in response to demand.
What is Lean manufacturing?
Based on efficiency sa JIT or automation.
What are key Logistics
-Key Logistics Activities include: Customer services, demand forecasting, inventory
Activities?
management, logistics communications, materials handling, order processing,
packaging, parts and service support, plant and warehouse site selection,
procurement, reverse logistics, traffic and transportation, warehousing and storage,
etc.
1.3.2.2
What is JIT inventory control?
System to reduce inventory levels by coordinating demand and supply where desired
items arrives just in time for use.
What is value chain
A value chain is a chain of activities for a firm operating in a specific industry. Each
activity gives the products more added value.
What are value chain analysis?
It refers to (A) "primary activities" covering: inbound logistics, operations (production),
outbound logistics, marketing & sales (demand),services (maintenance).
(B): support activities covering administrative infrastructure management, human resource
management, technology (R&D), and procurement (purchasing, transport, inbound raw
material)
2.1.1
What is value chain from the
From the customer perspective, the value chain focus on activities which produce
customer perspective?
customer valued features.
What is a Supply Network
From Vendormanufacturerwholesaler retailer to customer
What is Least total cost?
Minimize inventory carrying cost, lot quantity, transport cost and warehouse cost
EOQ=square root of (2AS/i)
Assume: 1. Constant demand; 2.Known lead time for replenishment 3. Purchase
A= annual usage; S=order cost; I
price constant, independent of amount ordered
= Invent. Carrying Cost (CCI)
2.1.3
Problems managing inventory
1. Inaccurate forecast, 2. Quality problem, 3. Industrial relations
A.2.1b
LEAGILE
LEAN:“If a company produces products to a forecast in anticipation of customer
demand then it is “pushing its inventory (Product: notebook computer)
AGILE: If a company waits to produce its products until a customer demands them,
then customer is pulling the inventory (Product: mobile phone).
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