33:799:301 Study Guide - Midterm Guide: Delphi Method, Planning Horizon, Master Production Schedule

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: Klepacki

Document Summary

Supply chain: flow of products from raw materials to finished goods: new paradigm: firm in a supply chain focuses activities in its area of specialization. Successful supply chains must share all information and have good visualization. Bullwhip effect: erratic demand forecasts causing issues with stocks and production planning. Value chain: collection of activities within firm to design, product, market, deliver, & support its products and services. Risk management: measuring/assessing risk and developing strategies to manage it: example: wal-mart factory in bangladesh. There was no visualization, wal-ma(cid:396)t did(cid:374)"t look at all of its (cid:272)o(cid:374)t(cid:396)a(cid:272)ts. Spreadsheet problems 1, 4, 10, 12 (pages 71-73) Goals of purchasing: ensure uninterrupted flow of materials at lowest cost. Works closely with strategy of suppliers: improve quality of finished goods, maximize customer satisfaction. Profit-leverage effect: decrease in purchasing directly increases profits before taxes. Return on assets (roa) effect: high roa indicates managerial prowess in generating profits w/ lower spending.