CIS 3380 Study Guide - Midterm Guide: Bullwhip, Capacity Planning, Customer Relationship Management
17 May 2018
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CIS EXAM #2
CH. 10 SCM
Supply Chain Management
• Mgt of info flows between and among activities in a supply chain to maximize
total supply chain effectiveness and profitability (efficiency)
Upstream (suppliers) – orders, information, payments, returns
Downstream (customers) – distribution, products, services, information, invoices
Efficiency
• How well something is done…manager focus
• Doing things in optimal way
Effectiveness
• How useful something is…executive focus
• Doing right task, completing all activities
Supply Chain visibility – ability to view all areas up and down the supply chain in real
time
The bullwhip effect refers to the phenomenon of demand variability amplification as
moving up in the supply chain. Ex. Suppliers have more variability in products than
customers
Supply Chain Planning
• Moving upstream
• Follows payment flows
Supply Chain Execution
• Moving downstream
• Follows information flows
Push v. Pull SCM******Know in Detail
Push
• Business pushing product to customers
• Typical business strategy
Pull
• Companies pull supplies from suppliers based on customer orders
• Ex. Drug commercials use technique, then doctors prescribe meds
Four primary drivers of SCM
1. Facilities
2. Inventory
3. Transportation
4. Information
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find more resources at oneclass.com
Back Order – an unfilled customer order. It is demand against an item whose current
stock level insufficient to satisfy demand
3D printing supports procurement (buying of goods)
Radio Frequency ID supports logistics
Global Impacting Events That Affected SCM
1. Mar 2011 Japan Earthquake/Tsunami
• Hit Toyota HQ and suspended production with Honda
• Toyota plant in Tx was affected too
2. Oct 2011 Thailand Flooding
• Floods cripple hard drive supply chain, creates shortages
3. 2016 Hanjin Shipping Organization Bankruptcy
Cycle v. Safety Inventory******Know in Detail
Cycle – avg amount of inventory held to satisfy customer demands between inventory
deliveries
• Efficiency – holding small amounts of inventory and receiving orders
weekly or even daily
• Effectiveness – holding large amounts of inventory and receiving
inventory deliveries only once a month
Safety – extra inventory held in the event demand exceeds supply
• Efficiency – holding small amounts of safety inventory
• Effectivieness – holding large amounts of inventory
Metrics of SCM
• Customer order promised cycle time – the anticipated or agreed upon cycle time
of a purchase order. It is a gap between the purchase order creation date and the
requested delivery date
• Customer order actual cycle time – the avg time it takes to actually fill a
customer’s purchase order. This measure can be viewed on an order or an order
line level
• Inventory replenishment cycle time – measure of the manufacturing cycle time
plus the time included to deploy the product to the appropriate distribution center
• Inventory turnover rate – number of times that a company’s inventory cycles or
turns over per year. It is one of the most commonly used supply chain metrics.
CH. 11 CRM
Customer Relationship Management – involves managing all aspects of a customer’s
relationship with an organization to increase customer loyalty and retention and an
organization’s profitability
▪Operational CRM – Supports traditional transactional processing for day-to-day front-
office operations or systems that deal directly with the customers
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Supply chain management: mgt of info flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability (efficiency) Downstream (customers) distribution, products, services, information, invoices. Efficiency: how well something is done manager focus, doing things in optimal way. Effectiveness: how useful something is executive focus, doing right task, completing all activities. Supply chain visibility ability to view all areas up and down the supply chain in real time. The bullwhip effect refers to the phenomenon of demand variability amplification as moving up in the supply chain. Suppliers have more variability in products than customers. Supply chain planning: moving upstream, follows payment flows. Supply chain execution: moving downstream, follows information flows. Push: business pushing product to customers, typical business strategy. Pull: companies pull supplies from suppliers based on customer orders, ex. Drug commercials use technique, then doctors prescribe meds. Four primary drivers of scm: facilities, inventory, transportation, information.
