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TEST BANK : Understand Personal Finance /Purchasng and Supply Chain Management: Strategies and Realities{ SUMMARY AND EXAMS]/Solution and Answer Guide: Garman/Fox, Personal Finance 14e
7 Items
test_bank (1) UNDERSTAND PERSONAL FINANCE
Chapter 01: Understand Personal Finance Page 1 True / False 1. Financial literacy is knowledge of facts, concepts, principles, and technol... [Show More] ogical tools that are fundamental to being smart about money. a. True b. False ANSWER: True 2. Being financially responsible is being knowledgeable about facts, concepts, principles, and technological tools that are fundamental to being smart about money. a. True b. False ANSWER: False 3. Personal finance involves how people spend, save, protect, and invest their financial resources. a. True b. False ANSWER: True 4. Financial success is defined as having high wealth. a. True b. False ANSWER: False 5. Financial security is defined as having a high income. a. True b. False ANSWER: False 6. People who save and invest are much more likely to have funds for future consumption. a. True b. False ANSWER: True 7. Standard of living refers to an individual's level of spending and consumption. a. True b. False ANSWER: False 8. Standard of living is what individuals or groups aspire to attain, and level of living is the level of wealth, comfort, materials goods, and necessities one is currently living with. a. True b. False ANSWER: True 9. Financial security or wealth requires you to spend less than you earn. Name: Class: Date: Chapter 01: Understand Personal Finance a. True b. False ANSWER: True 10. A business cycle is a wavelike pattern of economic activity that includes an expansion, peak, contraction, and trough. a. True b. False ANSWER: True 11. The expansion phase is the preferred stage of the economic cycle. a. True b. False ANSWER: True 12. Since it is impossible to make precise forecasts about economic trends, we can ignore inflation and interest rates when planning our finances. a. True b. False ANSWER: False [Show Less]
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Supply Chain Management
Chapter I..................................................................................................................................................... [Show More] ......1 Supply Chain Management..........................................................................................................................1 Aim.................................................................................................................................................................1 Objectives.......................................................................................................................................................1 Learning outcome...........................................................................................................................................1 1.1 Introduction...............................................................................................................................................2 1.2 Supply Chain.............................................................................................................................................2 1.3 Supply Chain Management.......................................................................................................................4 1.4 Objective of Supply Chain Management..................................................................................................5 1.5 Importance of Supply Chain Management...............................................................................................5 1.6 Activities of Supply Chain Management..................................................................................................6 1.7 Decision Phases in a Supply Chain...........................................................................................................7 1.8 Process View of Supply Chain..................................................................................................................8 1.9 Linking Competitive (Business) and Supply Chain Strategies ...............................................................9 1.10 Supply Chain Drivers ...........................................................................................................................10 1.11 Barriers of Supply Chain Management..................................................................................................11 1.12 Scope of Supply Chain Activities..........................................................................................................11 1.13 Marketing Mix Model............................................................................................................................11 Summary......................................................................................................................................................14 References....................................................................................................................................................14 Recommended Reading..............................................................................................................................14 Self Assessment............................................................................................................................................15 Chapter II....................................................................................................................................................17 Designing the Supply Chain Network.......................................................................................................17 Aim...............................................................................................................................................................17 Objectives.....................................................................................................................................................17 Learning outcome.........................................................................................................................................17 2.1 Introduction.............................................................................................................................................18 2.2 Role of Distribution Network ................................................................................................................18 2.3 Factors Influencing Distribution Network Design..................................................................................19 2.4 Design Options for a Distribution Network ...........................................................................................20 2.5 E-business and its Impact .......................................................................................................................25 2.5.1 Advantages of E-business.......................................................................................................27 2.5.2 Disadvantages of E-business..................................................................................................28 2.6 Distribution Networks in Practice ..........................................................................................................28 2.7 Distribution Network Design in the Supply Chain.................................................................................28 2.8 Factors Affecting Network Design Decisions.........................................................................................29 2.9 Supply Chain Model...............................................................................................................................31 Summary......................................................................................................................................................33 References....................................................................................................................................................33 Recommended Reading..............................................................................................................................33 Self Assessment............................................................................................................................................34 Chapter III...................................................................................................................................................36 Designing and Planning Transportation Networks..................................................................................36 Aim...............................................................................................................................................................36 Objectives.....................................................................................................................................................36 Learning outcome.........................................................................................................................................36 3.1 Introduction.............................................................................................................................................37 3.2 Transportation in Supply Chain..............................................................................................................37 3.3 Importance of Transportation .................................................................................................................38 3.4 Role of Transport in Supply Chain.........................................................................................................38 3.4.1 Transportation Modes in Supply Chain.................................................................................39 3.5 Transportation Infrastructure and Policies .............................................................................................41 3.6 Design Options For Transportation Network .........................................................................................41 III/JNU OLE 3.7 Tailored Transportation...........................................................................................................................45 3.8 Trade-off in Transportation Design.........................................................................................................45 3.9 Routing and Scheduling in Transportation.............................................................................................45 3.10 Making Transportation Decisions in Practice.......................................................................................46 Summary......................................................................................................................................................47 References....................................................................................................................................................47 Recommended Reading..............................................................................................................................47 Self Assessment............................................................................................................................................48 Chapter IV...................................................................................................................................................50 Sourcing and Pricing..................................................................................................................................50 Aim...............................................................................................................................................................50 Objectives.....................................................................................................................................................50 Learning outcome.........................................................................................................................................50 4.1 Introduction.............................................................................................................................................51 4.2 Sourcing .................................................................................................................................................51 4.3 In-house and Outsource .........................................................................................................................51 4.4 3PL and 4PL ...........................................................................................................................................53 4.5 Benefits of Effective Sourcing Decisions...............................................................................................53 4.6 Supplier Scoring and Assessment...........................................................................................................54 4.6.1 Scoring Suppliers....................................................................................................................54 4.6.2 Ranking Suppliers...................................................................................................................54 4.7 Supplier Selection...................................................................................................................................55 4.8 Design Collaboration .............................................................................................................................55 4.9 Procurement Process...............................................................................................................................56 4.10 Sourcing Planning and Analysis...........................................................................................................56 4.11 Pricing and Revenue Management for Multiple Customers.................................................................56 4.12 Perishable Products and Seasonal Demand..........................................................................................58 Summary .....................................................................................................................................................60 References....................................................................................................................................................60 Recommended Reading..............................................................................................................................60 Self Assessment............................................................................................................................................61 Chapter V.....................................................................................................................................................63 Information Technology in the Supply Chain..........................................................................................63 Aim...............................................................................................................................................................63 Objectives.....................................................................................................................................................63 Learning outcome.........................................................................................................................................63 5.1 Introduction.............................................................................................................................................64 5.2 Supply Chain IT Framework..................................................................................................................65 5.3 Role of Information in Supply Chain......................................................................................................65 5.4 Customer Relationship Management (CRM).........................................................................................65 5.5 Internal Supply Chain Management ......................................................................................................67 5.6 Supplier Relationship Management........................................................................................................67 5.7 Transaction Management........................................................................................................................68 5.8 Enterprise Resource Planning (ERP)......................................................................................................68 5.9 E-commerce............................................................................................................................................69 5.10 Supply Chain Information Technology in Practice...............................................................................70 Summary .....................................................................................................................................................71 References....................................................................................................................................................71 Recommended Reading..............................................................................................................................71 Self Assessment............................................................................................................................................72 IV/JNU OLE Chapter VI...................................................................................................................................................74 Coordination in a Supply Chain................................................................................................................74 Aim...............................................................................................................................................................74 Objectives.....................................................................................................................................................74 Learning outcome.........................................................................................................................................74 6.1 Introduction.............................................................................................................................................75 6.2 Lack of Supply Chain Coordination ......................................................................................................75 6.3 Bullwhip Effect.......................................................................................................................................76 6.4 Managerial Levers..................................................................................................................................78 6.5 Building Strategic Partnerships and Trust..............................................................................................78 6.6 Continuous Replenishment Program (CRP) and Vendor Managed Inventory (VMI)............................78 6.7 Collaborative Planning, Forecasting and Replenishment (CPFR)..........................................................80 Summary......................................................................................................................................................82 References....................................................................................................................................................82 Recommended Reading..............................................................................................................................82 Self Assessment............................................................................................................................................83 Chapter VII.................................................................................................................................................85 Dimensions of Logistics..............................................................................................................................85 Aim...............................................................................................................................................................85 Objectives.....................................................................................................................................................85 Learning outcome.........................................................................................................................................85 7.1 Introduction ............................................................................................................................................86 7.2 Macro and Micro Dimension..................................................................................................................86 7.2.1 Macro Dimension...................................................................................................................86 7.2.2 Micro Dimensions...................................................................................................................87 7.3 Logistics Activities..................................................................................................................................89 7.4 Approach to Analysing Logistics Systems..............................................................................................90 7.5 Logistics and Systems Analysis..............................................................................................................93 7.6 Techniques of Logistics System Analysis...............................................................................................94 7.7 Factors Affecting the Cost and Importance of Logistics........................................................................95 Summary......................................................................................................................................................98 References....................................................................................................................................................98 Recommended Reading..............................................................................................................................98 Self Assessment............................................................................................................................................99 Chapter VIII..............................................................................................................................................101 Demand Management and Customer Service........................................................................................101 Aim.............................................................................................................................................................101 Objectives...................................................................................................................................................101 Learning outcome.......................................................................................................................................101 8.1 Introduction...........................................................................................................................................102 8.2 Outbound to Customer Logistics Systems ...........................................................................................102 8.3 Supply and Demand Relationship.........................................................................................................102 8.4 Graphical Representation of Supply and Demand Relationship...........................................................103 8.5 Demand Management...........................................................................................................................105 8.5.1 The Demand Management Process.......................................................................................106 8.6 Demand Forecasting.............................................................................................................................107 8.7 Demand Planning..................................................................................................................................108 8.8 Demand Forecasting Error....................................................................................................................108 8.9 CPFR.....................................................................................................................................................108 8.10 Customer Service................................................................................................................................109 8.11 Cost of Stock-outs ...............................................................................................................................111 8.12 Channels of Distribution......................................................................................................................111 Summary.....................................................................................................................................................113 References...................................................................................................................................................113 Recommended Reading.............................................................................................................................113 Self Assessment...........................................................................................................................................114 V/JNU OLE List of Figures Fig. 1.1 A conceptual model of a basic supply chain......................................................................................2 Fig. 1.2 A supply chain network.....................................................................................................................3 Fig. 1.3 Key parts of supply chain .................................................................................................................3 Fig. 1.4 Flows in a supply chain ....................................................................................................................4 Fig. 1.5 Supply chain management activities.................................................................................................6 Fig. 1.6 Cycle view of supply chain ..............................................................................................................8 Fig. 1.7 Push/pull view of supply chain .........................................................................................................9 Fig. 1.8 Linking competitive (business) and supply chain strategies...........................................................10 Fig. 1.9 Supply chain drivers.........................................................................................................................11 Fig. 1.10 Elements of marketing mix............................................................................................................12 Fig. 1.11 Market space model.......................................................................................................................13 Fig. 2.1 Relationship between number of facilities and logistics cost..........................................................20 Fig. 2.2 Manufacturer storage with direct shipping......................................................................................21 Fig. 2.3 Manufacturer storage with direct shipping and in-transit merge.....................................................22 Fig. 2.4 Distributor storage with package carrier delivery...........................................................................23 Fig. 2.5 Distributor storage with last mile delivery......................................................................................24 Fig. 2.6 Manufacturer or distributor storage with costumer pickup.............................................................25 Fig. 2.7 Elements of e-business domain.......................................................................................................26 Fig. 2.8 Areas of e-business..........................................................................................................................27 Fig. 2.9 Supply chain model.........................................................................................................................32 Fig. 3.1 Flow of product along the supply chain..........................................................................................38 Fig. 3.2 Direct shipping network..................................................................................................................42 Fig. 3.3 Direct shipping network with milk runs..........................................................................................43 Fig. 3.4 Shipments via central distribution network.....................................................................................44 Fig. 3.5 A tailored network...........................................................................................................................44 Fig. 3.6 Savings matrix method....................................................................................................................46 Fig. 4.1 Pricing charges into supply chain....................................................................................................57 Fig. 4.2 The 4 “R” strategy of revenue management....................................................................................57 Fig. 4.3 Pegging in SCM..............................................................................................................................58 Fig. 4.4 Warehousing in SCM.......................................................................................................................59 Fig. 5.1 Integrated supply chain model.........................................................................................................64 Fig. 5.2 Customer relationship management................................................................................................66 Fig. 5.3 SCM goals: the seven rights of fulfilment.......................................................................................67 Fig. 5.4 Internal supply chain ......................................................................................................................67 Fig. 5.5 E-commerce model .........................................................................................................................70 Fig. 6.1 A typical supply chain......................................................................................................................75 Fig. 6.2 Increasing order variability up the supply chain.............................................................................76 Fig. 6.3 CPFR model....................................................................................................................................80 Fig. 7.1 Logistics costs as a percentage of GDP...........................................................................................87 Fig. 7.2 Push and pull systems in supply chain............................................................................................88 Fig. 7.3 Logistic activities.............................................................................................................................90 Fig. 7.4 Inbound and outbound logistics.......................................................................................................91 Fig. 7.5 Nodes and links in a logistics system..............................................................................................93 Fig. 7.6 A simple logistics channel...............................................................................................................93 Fig. 7.7 Relationship between required inventory and order cycle length ..................................................95 Fig. 7.8 Relationship of the cost of lost sales to inventory cost....................................................................96 Fig. 7.9 Relationship of product dollar value to various logistics costs.......................................................97 Fig. 8.1 Supply and demand balance..........................................................................................................103 Fig. 8.2 Supply and demand equilibrium....................................................................................................104 Fig. 8.3 Shift in demand..............................................................................................................................105 Fig. 8.4 Demand management process.......................................................................................................107 Fig. 8.5 Demand forecasting error..............................................................................................................108 Fig. 8.6 Collaborative planning, forecasting and replenishment process...................................................109 Fig. 8.7 Customer service strategy...............................................................................................................110 Fig. 8.8 Channels of distribution.................................................................................................................111 Fig. 8.9 Distribution network.......................................................................................................................112 VI/JNU OLE List of Tables Table 4.1 Scoring and assessment of suppliers.............................................................................................55 Table 4.2 Categories of procurement ...........................................................................................................56 Table 7.1 Analysis of total logistics cost with a change to higher cost mode of transport...........................92 Table 7.2 Analysis of total logistics cost with a change to more warehouses..............................................92 Table 7.3 Static analysis of C & B chemical company (50,000 pounds of output)......................................94 Table 8.1 Demand fluctuations based on price and supply.........................................................................105 VII/JNU OLE Abbreviations 3PL - Third Party Logistics 4PL - Fourth Party Logistics B2C - Business-to-Consumer CPFR - Collaborative Planning, Forecasting and Replenishment CRM - Customer Relationship Management CRP - Continuous Replenishment Program ERP - Enterprise Resource Planning ICT - Information and Communications Technology ISCM - Internal Supply Chain Management IT - Information Technology JIT - Just-in-time PDA - Personal Digital Assistants SC - Supply Chain SCM - Suppliers Relationship Management SCM - Supply Chain Management SCOR - Supply Chain Operations Reference Model UPS - Unit Parcel Service VMI - Vendor Managed Inventory WWW - World Wide Web [Show Less]
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HANDBOOK OF SUPPLY CHAIN:MANAGEMENT JAMES B. AYERS
Contents Section I: Supply Chain Overview 1 Introduction to the Supply Chain.................................................. 3 1.1 Introduction ......... [Show More] ..............................................................................................3 1.2 Defining Supply Chains................................................................................4 1.3 Defining Supply Chain Management .........................................................7 2 Supply Chain Management — The “Right” Way ......................... 9 2.1 Supply Chain Viewpoints.............................................................................9 2.1.1 Functional............................................................................................9 2.1.2 Procurement......................................................................................10 2.1.3 Logistics............................................................................................. 11 2.1.4 Information ....................................................................................... 11 2.1.5 Business Process Reengineering ....................................................12 2.1.6 Strategic .............................................................................................12 2.2 Evidence of the Impact................................................................................13 2.2.1 Personal Computers ........................................................................13 2.2.1.1 What Observers Say — The Buzz..................................13 2.2.1.2 The Supply Chain Spin ....................................................14 2.2.2 Entertainment ...................................................................................14 2.2.2.1 One Company’s Challenge............................................. 14 2.2.2.2 The Supply Chain Spin ....................................................15 2.2.3 Adding Value Through Brands......................................................15 2.2.3.1 The Buzz on Brands..........................................................15 2.2.3.2 The Supply Chain Spin ....................................................16 2.2.4 Healthcare .........................................................................................17 2.2.4.1 What Observers Say — The Buzz...................................17 2.2.4.2 The Supply Chain Spin ................................................... 18 2.3 SCM — Defensive and Offensive Weapon.............................................. 18 3 Supply Chain Potency.................................................................. 21 3.1 The Need for Help .......................................................................................21 3.2 Potent Supply Chains................................................................................. 23 4 Evolution of Supply Chain Models ............................................. 25 4.1 Manufacturing Strategy Stages..................................................................25 4.2 The Driving Force ........................................................................................29 4.3 Supply Chain Progression ..........................................................................32 4.4 What Does It Mean?.....................................................................................34 5 Model for Competing through SCM............................................ 35 5.1 Product Life Cycle Grid ..............................................................................35 5.2 Achieving Potency in Supply Chain Redesign........................................38 5.2.1 Strategic or Not Strategic? ..............................................................38 5.2.2 Level of Impact.................................................................................40 5.3 Why Bother? ................................................................................................ 41 6 Linking the Supply Chain with the Customer ........................... 43 6.1 Specifying Supply Chain Design ...............................................................43 6.2 Effective Supply Chains ............................................................................. 44 6.3 Quality Function Deployment ...................................................................49 Section II : The Supply Chain Challenge — Five Tasks for Management Task 1: Designing Supply Chains For Strategic Advantage (Chapters 7–9) ............................................................. 55 Task 2. Implementing Collaborative Relationships (Chapters 10–13)............................................................................. 55 TASK 3. Forging Supply Chain Partnerships (Chapters 14–20)............................................................................. 56 TASK 4. Managing Supply Chain Information (Chapters 21–23)............................................................................. 57 TASK 5. Removing Cost from the Supply Chain (Chapters 24–29)............................................................................. 57 7 Supply Chains as Activity Systems ............................................. 59 7.1 Structuring the Supply Chain ....................................................................59 7.2 Case Study — Applying the Frameworks................................................60 7.2.1 Select Strategic Themes to Underpin Your Strategy ...................61 7.2.2 Define Unique Activities to Support These Streams...................63 7.2.3 Make Sure the Activities Fit Together ...........................................65 7.3 Conclusion ....................................................................................................66 8 QFD Case Study............................................................................ 69 8.1 Applying QFD at Acme...............................................................................69 8.1.1 Customer/Product Groups ............................................................71 8.1.2 Performance Factors ........................................................................71 8.1.3 Ideal Supplier ...................................................................................71 8.2 Acme’s Performance....................................................................................72 8.2.1 Competitor Comparison .................................................................72 8.2.2 Trends ................................................................................................72 8.2.3 Added Value .....................................................................................73 9 The Supply Chain and New Products ......................................... 75 10 Foundation for Supply Chain Change ....................................... 79 10.1 Promoting Change.......................................................................................80 10.1.1 Step 1: Plan........................................................................................80 10.1.2 Step 2: Do ..........................................................................................81 10.1.3 Step 3: Check.................................................................................... 81 10.1.4 Step 4: Act..........................................................................................81 10.2 Top Management Involvement..................................................................81 10.2.1 Who is Top Management? ..............................................................82 10.2.2 Keepers of the Strategy .................................................................. 83 10.2.3 Capability-Building/Strategy Shifts .............................................84 10.2.4 Portfolio Management.....................................................................84 11 Functional Roles in Supply Chain Change................................. 87 11.1 Introduction ..................................................................................................87 11.2 Designing Supply Chains For Strategic Advantage................................89 11.3 Implementing Collaborative Relationships (This Task) .........................90 11.4 Forging Supply Chain Partnerships..........................................................90 11.5 Managing Supply Chain Information.......................................................90 11.6 Making Money from the Supply Chain....................................................91 12 Supply Chain Design — A Team Framework ............................. 93 12.1 Initiatives and Projects ................................................................................93 12.1.1 Sponsorship ......................................................................................95 12.1.2 Project Phasing .................................................................................97 12.1.3 Teams at Three Levels .....................................................................97 12.2 A Methodology for Conceptual Design....................................................98 12.2.1 Task 1: Describe the As-Is Situation...............................................98 12.2.2 Task 2: Assess As-Is Strengths and Weaknesses ........................100 12.2.3 Task 3: Develop a Greenfield Vision............................................100 12.2.4 Task 4: Develop the To-Be Process...............................................101 12.2.5 Task 5: Prepare Conceptual Design and Action Plans ..............102 13 Institutionalizing Supply Chain Changes ................................ 103 13.1 The Supply Chain Function in the Organization ..................................103 13.1.1 Should There be a Supply Chain Function?...............................104 13.1.2 Basic Alternatives...........................................................................105 13.1.3 Timing Organization Change.......................................................107 13.2 Staying on Track — Performance Measures/Structure........................108 13.2.1 Measurement ..................................................................................108 13.2.2 Platform Teams at DaimlerChrysler............................................ 110 14 Motivations for Partnerships ..................................................... 113 14.1 Types of Partnerships ................................................................................ 115 14.1.1 The Vertical Partnership................................................................ 115 14.1.2 The Horizontal Partnership.......................................................... 116 14.2 Motivations for Supply Chain Partnerships .......................................... 117 14.2.1 Core Competency and the Supply Chain................................... 117 14.2.2 Traditional Model........................................................................... 119 15 Emerging Partnership Model ..................................................... 123 15.1 Introduction ................................................................................................123 15.2 New Roles For Procurement ....................................................................125 15.3 Fundamental Barriers................................................................................126 16 Planning for Partnerships........................................................... 129 16.1 A Partnership Vocabulary.........................................................................129 16.1.1 Purpose............................................................................................129 16.1.2 Direction ..........................................................................................131 16.1.3 Choice .............................................................................................131 16.2 Using the Vocabulary ................................................................................132 17 Core Competence and Partnerships........................................... 135 18 Organizing Improvement Efforts............................................... 139 18.1 Using Spheres to Segment the Supply Chain ........................................140 18.2 Defining “Spheres” ....................................................................................140 18.3 Spheres and Activity Systems ..................................................................145 19 Stage 3 Supply Chain Structure ................................................. 147 19.1 Step 1: List the Issues.................................................................................148 19.2 Step 2: Define Requirements ....................................................................149 19.3 Step 3: Structure the Effort........................................................................151 20 The Extended Enterprise TM at DaimlerChrysler....................... 153 20.1 Description of the Extended Enterprise..................................................153 20.2 Presourced Components Through a Supplier Strategy........................155 20.3 Documented Processes..............................................................................156 20.4 Risk Assessment.........................................................................................157 20.5 Product Sign-Off (PSO) .............................................................................157 21 SCM and Information Technology ............................................ 161 21.1 The Landscape............................................................................................162 21.2 Supply Chain Applications.......................................................................163 22 Topography of Supply Chain Applications .............................. 167 22.1 MRP and ERP .............................................................................................168 22.2 Specialized Applications for SCM ...........................................................172 22.2.1 SCM and APS ..................................................................172 22.2.2 MES...................................................................................173 22.2.3 Warehouse Management Systems (WMS)...................174 22.2.4 Customer Relationship Management (CRM) .............174 22.2.5 Product Data Management (PDM)...............................175 22.3 Meeting Improvement Objectives for Systems..........................176 22.3.1 Strategic Plan ...................................................................177 22.3.2 Documentation Shortcomings.......................................177 22.3.3 Modularizing the Job......................................................178 22.3.4 The “Simpler Way” .........................................................178 23 Supply-Chain Council ................................................................ 179 23.1 SCOR Model ...............................................................................................179 23.2 SCOR Application Cases...........................................................................181 23.2.1 AT&T Wireless Services .................................................182 23.2.1.1 SCOR Level 1: Basis of Competition ..........183 23.2.1.2 SCOR Level 2: Operations Analysis and Mode .......................................................184 23.2.1.3 SCOR Level 3: Performance Levels, Practices, and Systems Selection.................185 23.2.1.4 SCOR Level 4: Implementation ..................186 23.2.2 Mead Johnson Nutritionals (MJN) ...............................186 24 Cost and the Supply Chain......................................................... 189 24.1 The Allure of Cost Reduction...................................................................189 24.2 Are Cost Reductions Strategic?................................................................190 24.2.1 Conflicting Viewpoints..................................................................191 24.2.2 Strategic or Not Strategic? ............................................................192 24.3 Root Causes for Cost .................................................................................195 24.3.1 Lack of Clarity ................................................................................195 24.3.2 Variability ........................................................................................196 24.3.3 Product Design ...............................................................................197 24.3.4 Information Sharing ......................................................................197 24.3.5 Weak Links......................................................................................198 24.3.6 Unintended Consequences...........................................................199 25 Root Cause — Clarity ................................................................. 201 25.1 Introduction ................................................................................................201 25.2 Company Cost Structures .........................................................................203 25.2.1 The Starting Point (A)................................................................... 203 25.2.2 Department Costs (B) ....................................................................204 25.2.3 Improvement Categories (C)....................................................... 205 25.2.4 Allocated Costs — Roadblock to Clarity ....................................206 25.2.5 Direct Cost versus Absorption Accounting................................208 25.3 Activity-Based Cost ...................................................................................210 25.3.1 From Departments to Activities...................................................213 25.3.2 Capital Recovery (Level III)..........................................................215 25.3.2.1 Addressing Capital Recovery — The Need ............... 215 25.3.2.2 Capital Has a Cost...........................................................217 25.3.2.3 Recommended Approach ..............................................217 25.3.3 Product Costing with ABC (IV-D) .............................................. 219 25.3.3.1 Defining Activities ......................................................... 219 25.3.3.2 Cost Drivers .....................................................................221 25.3.3.3 Supply Chain Cost Map.................................................222 25.3.3.4 Paths to Supply Chain Product Costs ..........................223 25.4 Bottleneck Costs .........................................................................................224 25.5 Case Study: Cross-Company Accounting ..............................................225 25.5.1 The Cost Accounting Problem .................................................... 225 25.5.2 The SAMIS Approach ...................................................................226 26 Root Cause — Variability ........................................................... 229 26.1 Volume Variability .....................................................................................230 26.1.1 Self-Inflicted Variation...................................................................231 26.1.2 The Cost–Volume Relationship....................................................231 26.1.3 From Batch to Flow........................................................................234 26.1.3.1 The Batch World..............................................................234 26.1.3.2 The Flow World...............................................................237 26.2 Demand-Driven Supply Chain ................................................................238 26.2.1 Time Is Equal to Cost (Time Mapping).......................................239 26.2.2 Cells................................................................................................. 241 26.2.3 Agile Enterprises............................................................................244 26.2.4 Toyota Production System ............................................................245 26.2.5 Postponement................................................................................ 247 26.2.6 Demand Flow .................................................................................249 26.3 Process Variability......................................................................................250 26.3.1 Process Capability......................................................................... 250 26.3.2 Implications for SCM.....................................................................253 27 Root Cause — Design.................................................................. 257 27.1 The SCM Opportunity in Design.............................................................257 27.2 Discovery-Driven Planning......................................................................258 27.2.1 Step 1: Prepare a Reverse Income Statement .............................259 27.2.2 Step 2: Lay Out Pro Forma Functional Activity Specifications ..................................................................................259 27.2.3 Step 3: Track Assumptions............................................................260 27.2.4 Step 4: Revise the Income Statement...........................................260 27.2.5 Step 5: Test Assumptions at Milestones......................................260 27.3 Stage Gate Process .....................................................................................261 28 Root Cause — Information ......................................................... 265 28.1 The Cost of Being “Unintegrated”.......................................................... 266 28.2 Defining Integration ..................................................................................266 28.3 New Architectures .....................................................................................268 28.3.1 The Promise (and Threat) of New Technology..........................269 28.3.2 Proactive Systems ..........................................................................269 29 Root Cause — Weak Links.......................................................... 273 29.1 The Role of Links .......................................................................................273 29.2 Theory of Constraints................................................................................274 29.3 Replenishment Rules.................................................................................275 29.4 The 3C Alternative .................................................................................... 277 29.5 Collaboration ..............................................................................................278 Section III: Supply Chain Methodologies 30 Supply Chain Prestudy ............................................................... 281 30.1 Organize End Users ...................................................................................281 30.1.1 Define Market Segments...............................................................282 30.1.2 Map Products to Segments ...........................................................282 30.1.3 Identify Supply Chains .................................................................283 30.2 Describe the Supply Chain(s)...................................................................283 30.2.1 Document Physical Flow ..............................................................284 30.2.2 Document Information Flow........................................................284 30.2.3 Document Financial Flow.............................................................284 30.2.4 Document New Product Flow .....................................................285 30.3 Document Management Processes..........................................................285 30.4 Interview Executives .................................................................................285 30.4.1 Describe Customer Requirements by Segment .........................285 30.4.2 Assess Relative Strengths and Weaknesses by Segment ..........286 30.4.3 Understand Barriers ......................................................................286 30.5 Prepare Conclusions ..................................................................................286 31 Implementation Roadmap .......................................................... 287 31.1 More about Spheres ...................................................................................287 31.2 The Three Phases........................................................................................288 31.3 The Five Tasks.............................................................................................289 31.4 Crosscurrents ..............................................................................................290 31.5 Task 1 Strategy Deliverables.....................................................................291 31.5.1 Describe the As-Is Situation......................................................... 292 31.5.2 Assess As-Is Strengths and Weaknesses .....................................292 31.5.3 Develop Greenfield, or Ideal, Vision ...........................................293 31.5.4 Develop the To-Be Process............................................................294 31.5.5 Prepare Conceptual Design and Action Plans .......................... 294 31.6 Tasks 2 Through 5 Initiatives....................................................................295 31.6.1 Task 2 Collaborative Relationships Initiatives...........................295 31.6.2 Task 3 Partnership Initiatives .......................................................295 31.6.3 Task 4 Information Systems Initiatives .......................................296 31.6.4 Task 5 Cost Reduction Initiatives.................................................296 32 From Purchasing to Strategic Sourcing — A Road Map .......... 299 32.1 Why Pursue Strategic Sourcing?..............................................................299 32.2 Methodology...............................................................................................300 32.2.1 Step 1: Determine Your Spending................................................300 32.2.2 Step 2: Prioritize the Spend Categories.......................................300 32.2.3 Step 3: Form Category Teams.......................................................301 32.2.4 Step 4: Develop a Sourcing Strategy for Your Categories ..............................................................................301 32.2.5 Step 5: Perform the RFP Process and Make the Final Selection ..........................................................................301 32.2.6 Step 6: Manage the Supplier Relationship Aggressively ...................................................................................302 32.2.7 Step 7: Provide Feedback to Both Suppliers and Senior Management ...............................................................302 32.3 Strategic Sourcing Success Stories ...........................................................302 33 Selecting Supply Chain Software .............................................. 305 Section IV: Supply Chain Case Studies 34 Partnership Barriers in the Nuclear Industry .......................... 313 34.1 Introduction ................................................................................................313 34.2 Historical Look ...........................................................................................314 34.3 Challenges in Partnership Formation .....................................................315 34.3.1 Generating Unit Differences.........................................................315 34.3.2 Cost Savings....................................................................................316 34.3.3 Inadequate Executive Oversight..................................................316 34.3.4 Inadequate Analysis and Planning..............................................317 35 Wholesale Grocer: Supply Chain “Streamlining” ................... 319 35.1 Distribution Center Consolidation and Relocation...............................319 35.2 Planning Considerations...........................................................................320 35.3 Distribution Center Location Scenarios..................................................320 35.3.1 The Facility Location Problem .....................................................321 35.3.2 The “Total Logistics Cost” Approach..........................................322 35.3.3 Results of the Analysis ..................................................................323 36 Plumbing Supplies: Manufacturer/Distributor........................ 325 36.1 The Faulty “Intellectual Model” ..............................................................325 36.2 PlumbCo’s Faulty Model ..........................................................................326 36.3 Revising PlumbCo’s Model ......................................................................327 36.4 The Impact of PlumbCo’s New Model ...................................................328 36.5 Lessons Learned.........................................................................................330 37 Supply Chain Management in Maintenance, Repair, and Overhaul Operations................................................................... 335 37.1 Demand Chain Issues................................................................................335 37.2 Service Imperatives....................................................................................336 37.3 Supply Chain Management......................................................................337 37.4 Stockholding ...............................................................................................338 37.5 Practical Solutions......................................................................................338 37.6 Primary Supply Line .................................................................................339 37.7 Replenishment............................................................................................339 37.8 Ordering from the Supply Chain.............................................................340 37.9 Results..........................................................................................................341 38 Retail Distribution: From Low Tech To Leading Edge Distribution Center ..................................................................... 343 38.1 Background.................................................................................................343 38.1.1 Motivating Factors .........................................................................344 38.2 Distribution Center Existing Conditions ................................................344 38.2.1 Planning Criteria ............................................................................345 38.2.2 Operations Planning and Layout ................................................345 38.3 Validation of the Plan ................................................................................346 38.4 Implementation ..........................................................................................348 38.5 Results Achieved........................................................................................348 38.6 Recent Steps ................................................................................................349 39 British Telecom — Capacity Planning in a Deregulating Industry ................................................................ 351 39.1 Background.................................................................................................351 39.2 The Challenge.............................................................................................352 39.3 The Reconnaissance Study........................................................................353 39.4 The Improvement Program ......................................................................354 39.5 Conclusions.................................................................................................357 40 Semiconductor Equipment: Supply Chain Links..................... 359 40.1 Background.................................................................................................359 40.2 Goals ............................................................................................................360 40.3 Company Operations ................................................................................361 40.4 Designing a Solution..................................................................................362 40.5 Benefits ........................................................................................................363 41 Footwear Distribution................................................................. 365 41.1 Major Decision Required ..........................................................................365 41.2 Management Incentives ............................................................................366 41.3 Benefits of the Program.............................................................................366 42 Bicycle Manufacturer: Internet Strategy ................................... 369 43 Consolidation Centers in the Lean Supply Chain ................... 375 43.1 Introduction ................................................................................................375 43.2 Definition of a Consolidation Center? ....................................................376 43.3 Motivations for Using Consolidation Centers.......................................377 43.4 The Work of the Consolidation Center ...................................................377 43.4.1 Which Items? ..................................................................................377 43.4.2 Why Returnable Containers? .......................................................378 43.4.3 Physical Organization of the Work..............................................379 43.4.4 Location of the Consolidation Center .........................................380 43.4.5 What the Consolidation Center Shouldn’t Do...........................380 43.4.5.1 Kitting ...............................................................................380 43.4.5.2 Incoming Quality Assurance.........................................381 43.4.5.3 Sorting Empty Boxes and Dunnage .............................381 43.5 Business Structure......................................................................................381 43.6 Information Flows Around the Consolidation Center .........................382 43.6.1 Routine Operations........................................................................382 43.6.2 Planning...........................................................................................383 43.6.3 Alarm and Emergency Response.................................................383 43.6.4 Performance Monitoring...............................................................383 44 Demand-Driven Supply Chain in a Start Up............................ 385 44.1 The Business ...............................................................................................385 44.2 Markets........................................................................................................386 44.3 Needs for Improvement............................................................................387 44.4 Process Recommendations .......................................................................388 44.4.1 Order Entry and Tracking/Sales Management .........................388 44.4.2 Inventory Management.................................................................390 45 Automobile Industry: Incoming Material................................. 395 45.1 The Big Picture ...........................................................................................395 45.2 Outsourcing ................................................................................................396 45.3 The Golden Rule — Support the Vehicle Build Process .......................397 45.4 Eliminating Cardboard..............................................................................397 45.5 Reducing Rack Costs .................................................................................397 45.6 Facilities and Equipment ..........................................................................398 46 Water Utility: Logistics Services Partnerships ......................... 399 46.1 Development and Operation....................................................................399 46.1.1 Purchasing.......................................................................................400 46.1.2 Supply Chain Management..........................................................400 46.2 Benefits ........................................................................................................401 47 Auto Parts Retailer — Logistics Partnership ............................ 403 47.1 AutoZone Before the Partnership............................................................403 47.2 Goals for the Partnership ..........................................................................404 47.3 Benefits ........................................................................................................406 48 Improving Furniture Manufacturer EVA .................................. 409 48.1 The Need for Speed ...................................................................................409 48.2 The New Supply Chain.............................................................................410 48.3 Results Achieved........................................................................................413 49 Performance Improvement Through Metrics for Buyers ........ 415 49.1 Background.................................................................................................415 49.2 Philosophy and Use of Metrics ................................................................416 49.3 Back to Merisel ...........................................................................................418 49.4 “Sludge” Metrics ........................................................................................421 49.5 How the Metrics Were Used.....................................................................421 49.6 The Results..................................................................................................422 Glossary .............................................................................................. 425 Bibliography ...................................................................................... 443 Index ................................................................................................... 447 [Show Less]
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LOGISTICS AND CHAIN SUPPLY MANAGEMENT
• The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of goods, services, and related information, from... [Show More] point of origin to point of consumption, for the purpose of conforming to customer requirements. • Components of an Integrated Logistics System – Physical Supply: links suppliers to operations process – Internal Operations: manages in-process material flow – Physical Distribution: links operations process to customers • A philosophy that describes how organizations should manage their supply chains to achieve strategic advantage • The objective is to synchronize requirements of the final customer with the flow of materials and information along the supply chain. The goal is to eliminate variability and reach a balance between high customer service and low cost SCM: the need to reduce variability or the impact of variability on the supply chain • Supply network variability – late deliveries: weather,equipment breakdown – quality problems • Manufacturing process variability – machine reliability and equipment failure – changeovers / setups / part expediting – design and quality problems • Customer network variability – cancellations and irregular orders – equipment failure – scheduling [Show Less]
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Purchasing and Supply Chain Management: Strategies and Realities
Table of Contents Foreword .......................................................................................... viii Preface ......................... [Show More] ......................................................................... ix Chapter I. Developments in Purchasing and Supply Chain Management and Logistics .................................................................................. 1 Procurement, Purchasing, Outsourcing, Supply Management and Supply Chain Management ......................................................... 1 The Sustainable Supply Chain ......................................................... 9 Resource-Based View and Competitive Advantage ........................ 10 Business Issues in the 21st Century ................................................. 13 Supply Chains into the Future ....................................................... 14 Supply Chain Education ................................................................ 16 Professional Competence: Food for Thought ................................ 19 Chapter II. Strategic Purchasing Management ................................................... 21 Corporate Planning ...................................................................... 21 Purchasing Planning and Purchasing Strategies ........................... 27 Corporate and Environmental Factors ......................................... 29 Strategic Planning ........................................................................ 29 Market Strategic Flexibility........................................................... 30 Objectives and Responsibilities ...................................................... 30 iv SWOT and Gap Analysis ............................................................... 32 Functions Involved in Corporate Planning .................................... 33 Functional Contribution to Corporate Strategy............................. 34 Monitoring Performance ............................................................... 35 Purchasing Needs and Corporate Strategies ................................. 36 Purchasing Strategies ................................................................... 38 Flexible Strategies......................................................................... 41 International Trade: Implications for Purchasing Management ............................................................................ 44 Ethical Purchasing ........................................................................ 47 Procurement Agencies .................................................................. 48 Food for Thought .......................................................................... 49 Chapter III. Purchasing Policy .............................................................................. 50 Policy Issues .................................................................................. 50 Selecting Overall Policy ................................................................ 53 Structure of Purchasing Organisation ........................................... 53 Structure of the Purchasing Function in Simple Organisations ...... 54 Division of Work amongst Buying Groups ..................................... 57 The Position of Purchasing Management in the Organisation ....... 59 Structure of the Purchasing Function in Complex Organisation .... 60 A Multilevel Structure for Purchasing Management ...................... 63 Other Methods of Achieving Coordination .................................... 65 The Selection of an Appropriate Structure for Particular Circumstances .......................................................................... 66 Multinational Supplies Structures .................................................. 67 Public Sector ................................................................................. 68 Benchmarking ............................................................................... 69 Materials Management.................................................................. 71 Exemplar Case Study: Procurement Business Strategy .................. 73 Chapter IV. Quality Management and Customer Service .................................... 89 Defining Quality ............................................................................ 89 Design and Conformance .............................................................. 92 The Costs of Quality...................................................................... 93 Efficient Consumer Response ........................................................ 99 Total Quality Management .......................................................... 100 Food for Thought ........................................................................ 103 v Chapter V. Supply Chain Management ............................................................. 104 The Role of Supply Chain Management ....................................... 104 The Supply Chain Mix ................................................................. 107 The Scope of the Supply Chain .................................................... 109 The Value Chain and Interlock Strategy ...................................... 113 Chapter VI. Managing the Supply Chain Function ............................................. 120 Staffing the Department .............................................................. 121 Operating Manuals...................................................................... 124 Qualities of Supply Chain Personnel............................................ 125 Recruiting Personnel ................................................................... 126 Managing the Department .......................................................... 130 Implications for Supply Chain Management ................................ 133 Management and Implementation of Change .............................. 133 Supply Chain and Change ........................................................... 135 Chapter VII. Operating Environments ................................................................. 138 Integrated Logistic Support ......................................................... 138 ILS Management Structure.......................................................... 143 Level of Repair Analysis .............................................................. 148 Logistics Information Systems ..................................................... 150 Logistics and Other Organisational Functions ............................. 155 Chapter VIII. Provisioning and Inventory Control ................................................ 161 Provisioning................................................................................ 161 The Use of Computers ................................................................ 171 The Objectives of an Inventory Control System ........................... 174 Method of Inventory Control ....................................................... 180 Cost of Inventory Investment ...................................................... 185 Inventory Control and Accounting Methods ................................ 187 Pricing Issues .............................................................................. 189 Price Analysis ............................................................................. 195 Inventory in the Final Accounts................................................... 196 Identification and Coding of Materials ........................................ 198 Development of the Coding System ............................................. 205 vi The Stores Vocabulary ................................................................ 210 Inventory Reduction .................................................................... 217 Review of Other Concepts ........................................................... 221 Materials Requirements Planning ................................................ 224 Manufacturing Resource Planning .............................................. 226 Chapter IX. Stores Management ....................................................................... 228 Stores Management Objectives ................................................... 228 The Siting of Stores Buildings and Stockyards ............................. 230 Construction of the Buildings and Stockyards ............................. 231 Stockyards .................................................................................. 233 Internal Layout ........................................................................... 233 Detailed Planning of Layouts ...................................................... 234 Types of Stores ............................................................................ 235 Special Storage Facilities ............................................................ 240 Planning Storage Equipment ....................................................... 242 Handling Equipment ................................................................... 245 Types of Handling Equipment ..................................................... 248 Security ....................................................................................... 255 Safety and Safe Methods of Working ........................................... 256 Case Studies ................................................................................ 260 Chapter X. Transport ........................................................................................ 264 Introduction ................................................................................ 265 Fleet Management ...................................................................... 266 Vehicle Scheduling ...................................................................... 269 Maintenance and Security ........................................................... 273 Facilities for Maintenance ........................................................... 273 Quality Control ........................................................................... 274 Security ....................................................................................... 275 Containers, Unitisation and Palletisation .................................... 276 Mechanical Aids to Loading and Off-Loading ............................. 280 Loading and Unloading Equipment Available on Vehicles........... 282 Road Vehicle Design and Road Planning ..................................... 282 Road Haulage ............................................................................. 287 Operating Costs of Own Fleet ..................................................... 291 Rail Freight ................................................................................. 295 vii Air Freight .................................................................................. 297 Food for Thought ........................................................................ 300 Case Study .................................................................................. 301 Chapter XI Physical Distribution ....................................................................... 303 Distribution ................................................................................. 303 Distribution Planning .................................................................. 304 Logistics and Delivery Planning .................................................. 307 Budgetary Control in Distribution ............................................... 312 Food for Thought ........................................................................ 315 Case Study .................................................................................. 317 United Parcel Service ................................................................. 318 Modelling Systems ....................................................................... 318 Radio Frequency Identification.................................................... 319 Chapter XII. E-Business ...................................................................................... 320 A Definition of Electronic Data Interchange................................ 320 Why Use EDI?............................................................................. 323 Viewpoint .................................................................................... 340 References and Bibliography.......................................................... 342 About the Author............................................................................. 355 Index ............................................................................................... 356 [Show Less]
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Solution and Answer Guide: Garman/Fox, Personal Finance 14e,
Solution and Answer Guide GARMAN/FOX, PERSONAL FINANCE 14E, CHAPTER 1: THINKING LIKE A FINANCIAL PLANNER TABLE OF CONTENTS Answers to Chapter Concept Ch... [Show More] ecks ........................................................................................................ 2 What Do You Recommend Now? .............................................................................................................. 4 Let’s Talk About It ..................................................................................................................................... 5 Do the Math ................................................................................................................................................. 6 Financial Planning Cases ........................................................................................................................... 8 Extended Learning .................................................................................................................................... 10 Solution and Answer Guide: Garman/Fox, Personal Finance 14e, Chapter 1: Thinking Like a Financial Planner © 2024 Cengage. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible 2 website, in whole or in part. ANSWERS TO CHAPTER CONCEPT CHECKS LO1.1 Recognize the keys to achieving financial success. 1. Explain the five steps in the financial planning process. Answer: There are five fundamental steps to the personal financial planning process: (1) evaluate your financial health to your education and career choice; (2) define your financial goals; (3) develop a plan of action to achieve your goals; (4) implement spending and saving plans to monitor and control progress toward your goals; and (5) review your financial progress and make changes as appropriate. 2. Distinguish among financial success, financial security, and financial happiness. Answer: Financial success is the achievement of financial aspirations that are desired, planned, or attempted. Success is defined by the individual or family that seeks it. Financial success may be defined as being able to live according to one’s standard of living. Financial security is that comfortable feeling that your financial resources will be adequate to fulfill any needs you have as well as your wants. Financial happiness is the experience you have when you are satisfied with money matters. People who are happy about their finances will see a spillover into positive feelings about life in general. 3. Summarize what you will accomplish studying personal finance. Answer: Several things can be accomplished by studying personal finance. Recognize how to manage unexpected and expected financial events. Pay as little as possible in income taxes. Understand how to effectively comparison shop for vehicles and homes. Protect what we own. Invest wisely. Accumulate and protect the wealth that we may choose to spend during our non-working years (e.g., retirement) or donate. 4. What are the building blocks to achieving financial success? Answer: The building blocks for achieving financial success include a foundation of regular income that provides the means to support your lifestyle and save for desired goals in the future. The foundation supports a base of various banking accounts, insurance protection, and employee benefits. Then we can establish goals, a recordkeeping system, a budget, and an emergency savings fund. We will also manage various expenses such as housing, transportation, insurance, and the payment of taxes. We will also need to handle credit, savings, and educational costs. Finally, we invest in various investment alternatives such as mutual funds, stocks, and bonds, often for retirement. As a result of all these building blocks, we are more apt to have a financially successful life. LO1.2 Understand how the economy affects your personal financial success. 1. Summarize the phases of the business cycle. Answer: The business cycle entails a wavelike pattern of rising and falling economic activity as measured by economic indicators like unemployment rates or the gross domestic product. The phases of the business cycle include expansion (preferred stage—production is high, unemployment low, interest rates low or falling, stock market and consumer demand high), peak, contraction, downturn, trough, and recovery. 2. Describe two statistics that help predict the future direction of the economy. Answer: Forecasting the state of the economy involves predicting, estimating, or calculating what will happen in advance. We need to be able to forecast the state of the economy, inflation, and interest rates so that we have advance warning of the directions and strength of changes in economic trends since they will affect our personal finances. Two statistics we could watch are the consumer confidence index (how consumers feel about the economy and their personal finances) and the index of leading economic indicators (composite index, averages ten components of economic growth). [Show Less]
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Personal Financial Planning: University of the People
At whatever point we choose to start a process of a Financial Plan, we should as a matter of first importance sort out precisely where we are available, wh... [Show More] ere we need to be, and in particular how to arrive (bytestbankap, 2020) As we stroll on a strong solid establishment, we may not understand that the Smart Goal was carried out to accomplish the objective that solid adjusts into a strong mass. All together for that structure to be effective, a thoroughly examined science plan was planned and instrumented through the SMART Goal achievement. To make your objective S.M.A.R.T., it needs to adjust to the accompanying rules: Specific, Measurable, Attainable, Relevant, and Timely (bytestbankap, 2020) When carrying out Smart Goals your brain should be clear and your reasoning cap should be on and prepared to investigate and accomplish the result (bytestbankap, 2020). Brilliant objectives give one method for joining discipline in the arranging cycle. I will set up a Financial Plan for a possibility named Alice utilizing the Smart Goals strategy to investigate her obligation to proportion spending plan toward her future funds. The S.M.A.R.T. planning model is a framework used for setting and organizational goals. Each letter refers to a different criterion. S: Specific: A specific goal that addresses as many descriptor questions as possible M: Measurable: What measurable factors determine a goal has been met A: Attainable: Possessing necessary skills to achieve goals [Show Less]
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