SCM 300 – MODULE 07
Also, be sure to read all introductory sections: Jazz, Cascading Injuries, etc.
Below is a list of the items most likely to be tested from the lectures.
This list is not
necessarily complete, but it is a helpful guide.
SCM Basics slide 2-3
Basic responsibilities of a supply chain
Meet customer demand:
right items, right place, right time
Quality- High performance, consistency
Flexibility: Customization and/or volume
Contribute to profitability:
Support revenue streams: cost, quality, speed, flexibility offerings
Control costs: minimize waste and inventory
Capture data, measure performance, analyze data
Responsive to changes in market demand
Understand the following terms -
front-end, back-end, upstream, downstream
Push vs. Pull
Understand the basics of Push and Pull systems and when each is appropriate
Push(apple): push product through without customization
Pull(Dell): customize product and pull on “strings” during manufacturing
Push system - items are made before demand. Pull system - Items made as result OF demand.
Strengths and weaknesses of Push and Pull,
Push system PROS and CONS
Pros - high inventories, low ordering costs, less likely to run out of product, shorter lead times, mistakes
and defects tolerable
Cons - High holding costs, low customization flexibility, mistakes and defects tolerable, forecasting
miscalculations can be costly
Pull system PROS and CONS