SCM Final Exam Study Guide
(1) 4 Competitive Priorities of a Supply Chain
1. Time
Amount of Automation? Maximum Output/Capacity
... [Show More] required?
Line Balancing, Bottlenecks, Lead Times
2. Flexibility
Volume flexibility v. customization flexibility?
Automation and/or workforce capabilities- postponement
3. Quality
Consistency and High Performance- training, automation
Jidoka- everyone is responsible for quality
4. Cost
Inventory, defects, damage, labor, facilities, packaging,….
Product, service, support system
(3.2) SCM Flows
1. Line Flow
Demand: standard items, high volume, static industry
Layout: product focused/line flow layouts
Manufacturing system: assembly line, continuous flow systems
MAKE TO STOCK SYSTEM
Step one onward and never go backward
Assembly line
Can be interrupted
Honda Auto Assembly Plant, Office Furniture Manufacturer
Continuous Flow System
Must be run to completion
Oil refinery, bread, Hershey’s kisses, Oreo cookies
Can take on numerous shapes- S, U, L shape
Good for producing end items/services have high demand and little customization
Work centers are located in a linear path
Items begin on one end of the line and continue in a linear path to the last
Each workstation performs the same exact work to every unit that passes
Assembly Line
Can be stopped at any time without compromising the inventory flowing
through the system
Stopping the line will not cause work-in-process items on the line to spoil
Cars, trucks, electronics
Continuous Flow
Must run to completion once the process has started
Ex: loaves of common sliced sandwich bread cannot be stopped mid
assembly- would burn in the oven
Line may curve for the multiple purposes (facility dimensions, how item is made, access
to multiple workstations easier, etc.)
S-shape
U-shape
SCM Final Exam Study Guide
2. Flexible Flow
Demand: customized items, low volumes, dynamic industry
Layout: Process focused/flexible flow layouts
Manufacturing system: job shops
MAKE TO ORDER SYSTEM
Manager Goals
Material Flows
Movement
Load Move
Inventory
Box shape
How are items moving in and out?
3. Hybrid Flow
Demand: Moderation (Customization, changed, industry)
Layout: Hybrid layouts
Manufacturing system: Group Technology (cellular) layout
Possibly an Assemble to order system
(2.2) Simple moving average
(5.2) Types of retailing options
Brick and Mortar
All products and services are sold to customers from physical store- MacDonald’s
Online or E-tailing
All products and services are sold to customers through an online websiteAmazon
Bricks and Clicks
Products can be bought from physical store or from on online system- Barnes and
Noble
Clicks and Calls
In addition to taking orders via the company website, some companies will
also offer sales via the phone- Lands’ End and L.L. Bean
Definitions
The last mile
In supply chain, the last mile typically refers to the production of the
supply chain between the final inventory holding facility and the end
consumer
Explained: Not necessarily cover the final mile before the customer gets
the product. If a customer ordered an item from Amazon, the last mile
might represent the hundred of miles from the Amazon center that carries
the product to the consumer house. Second, the end consumer is not
always a person living in a home. The end consumer can be an office that
ordered printer cartridges, a repair person that needs a part to fix their
client’s refrigerator, or a factory that is awaiting raw materials. Finally,
the real challenges of last mile logistics are that there is so much variation [Show Less]