Chapter 10 Supply Chain Design Completion

61) ________ is the synchronization of a firm's process with those of its suppliers and customers to match flow of materials, services and information with demand. Answer: Supply chain management Reference: Supply Chain Design Across the Organization Difficulty: Easy Keywords: supply chain management, supply chain design 62) ________ seeks to develop a firm's supply chain to meet the competitive priorities of the firm's operations strategy. Answer: Supply chain design Reference: Supply Chain Design Across the Organization Difficulty: Easy Keywords: supply chain management, supply chain design 63) ________ is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost. Answer: Weeks of supply Reference: Measures of Supply Chain Performance Difficulty: Moderate Keywords: weeks of supply measure 64) ________, the annual sales at cost divided by the average aggregate inventory value, is the number of times a year that a firm completely replenishes its inventory. Answer: Inventory turnover (turns) Reference: Measures of Supply Chain Performance Difficulty: Moderate Keywords: turnover, sales, inventory 65) ________ is the money used to finance ongoing operations. Answer: Working capital Reference: Measures of Supply Chain Performance Difficulty: Moderate Keywords: working capital 16 66) The clever wine shop owner held a tasting, accepted customer orders and payments, and then placed an order with the vineyard. Since he paid the vineyard after he received the shipment (and well after he charged his customers), his ________ time was negative. Answer: cash-to-cash Reference: Measures of Supply Chain Performance Difficulty: Moderate Keywords: cash-to-cash, cash flow 67) Cornelius Controlfreak insisted that his manufacturing plant also be the sole location for all finished goods inventory. If any customer placed an order, they knew it would come from the only place on Earth that had a ready supply, Cornelius' plant warehouse. ________ was alive and well thanks to this approach. Answer: centralized placement Reference: Inventory and Supply Chains Difficulty: Easy Keywords: centralized placement 68) ________ is a reduction in inventory and safety stock because of the merging of variable demands from customers. Answer: Inventory pooling Reference: Inventory and Supply Chains Difficulty: Moderate Keywords: inventory pooling, merging 69) ________ involves locating the stock closer to customers at a warehouse, distribution center, or retailer. Answer: Forward placement Reference: Inventory and Supply Chains Difficulty: Moderate Keywords: forward placement 70) ________ is essentially standardization in chunks. Answer: Modular design Reference: Mass Customization Difficulty: Moderate Keywords: modular design, mass customization 71) ________ is a concept whereby some of the final activities in the provision of a service or product are delayed until the orders are received. Answer: Postponement Reference: Mass Customization Difficulty: Moderate Keywords: postponement 17 72) One way to gain control over suppliers in a chain is to buy a controlling interest in them, known as ________. Answer: backward integration Reference: Outsourcing Processes Difficulty: Moderate Keywords: backward integration Learning Outcome: Compare common approaches to supply chain design. 73) When a company uses ________ , it does not perform some processes itself, but instead pays suppliers or distributors to perform those processes and provide needed services and materials. Answer: outsourcing Reference: Outsourcing Processes Difficulty: Easy Keywords: outsourcing Learning Outcome: Compare and contrast different sourcing strategies including outsourcing and insourcing 74) When a company uses ________ , it is moving upstream in the supply chain toward the source of raw materials. Answer: backward integration Reference: Outsourcing Processes Difficulty: Easy Keywords: vertical integration, backward integration Learning Outcome: Compare common approaches to supply chain design. 75) There was no reason to build a new call center and hire hundreds of customer service representatives when there were perfectly viable options thousands of miles away. Hence, the company decided to ________ this process. Answer: offshore Reference: Outsourcing Processes Difficulty: Easy Keywords: vertical integration, offshoring Learning Outcome: Compare common approaches to supply chain design. 76) When a company acquires more channels of distribution, such as its own distribution centers and retail stores, it is using ________. Answer: forward integration Reference: Outsourcing Processes Difficulty: Easy Keywords: vertical integration, forward integration Learning Outcome: Compare common approaches to supply chain design. 18 77) ________ is the process of using members of the distribution channel as if they were assembly stations in the factory. Answer: Channel assembly Reference: Strategic Implications Difficulty: Moderate Keywords: channel assembly Learning Outcome: Compare common approaches to supply chain design. 78) When a customer orders an item that is a completely new and different product, the company's supply chain must be able to deliver an item that is ________-to-order. Answer: design Reference: Strategic Implications Difficulty: Moderate Keywords: DTO, design-to-order Learning Outcome: Compare common approaches to supply chain design. 79) In ________, the product is built to customer specifications from a stock of existing components. Answer: assemble-to-order, ATO Reference: Strategic Implications Difficulty: Moderate Keywords: assemble-to-order Learning Outcome: Compare common approaches to supply chain design. 80) Customer clothing and the Boeing 787 Dreamliner aircraft are based on standard designs but component production and manufacture of the final product is ________. Answer: make-to-order Reference: Strategic Implications Difficulty: Moderate Keywords: make-to-order, MTO Learning Outcome: Compare common approaches to supply chain design. 81) Discuss the major differences between supply chains for services and manufacturing. Which supply chain is easier to coordinate effectively? Answer: Supply chain design for a service provider is driven by the need to provide support for the essential elements of the various service packages it delivers. Manufacturers try to control inventory by managing the flow of materials. Since a good is very rarely a pure service or a pure manufactured product, most companies will experience both issues. Ease of coordination answers will vary but may depend on the dynamic nature of the item, of the market, and other factors outside the control of the operations manager. Reference: Supply Chains for Services and Manufacturing Difficulty: Moderate Keywords: manufacturing, service, inventory, service package, supply chain 19