1. Understand what is the philosophy of lean manufacturing. Which company is credited
with popularizing this philosophy?
Doing more with less JIT
Minimizing the inventory of components and work-in-progress
Founded by Toyota
2. In what situati
how effective logistics can positively impact each component of the balance
sheet of the firm and can help make it look healthy and attractive to investors
Cash and Receivables? Min
Property, Plant, and Equipment? Min
.synchronization vs. conventional SC
-Price penalties on small orders
-Maximized batch quantities
-Delivery scheduled to optimize route efficiency
-No price penalties
-Small, more frequent shipments
-Delivery scheduled to m
Reverse of traditional costing techniques.
A functional budget is determined by the demands of the missions it serves.
Various types of costs involved when a firm holds inventory (7)
Cost of working capital
Storage and handling
A position of enduring advantage over competitors in terms of consumer preference.
Two ways cost advantage is typically obtained by firms
a.Economies of Scale (Buy more) Only 1-2 companies in an industry have this
i.Fixed costs sprea
GROUP NUMBER: 3
Ch1 4 Review Assignment
Briefly elaborate on each term below in order to receive 2.5 points towards your Exam 1 grade. For some
of the terms a one sentence definition is sufficient, while for other terms you may need to elabor
Chapter 9: Managing the Global Pipeline
Why Firms Go Global
1. Increased Revenue
a. Successful foreign market expansion = more revenue.
b. Foreign companies can compete with you at home and you can compete
with them in their markets.
2. Decrease Cost
THIS STUDY GUIDE IS NOT ALL INCLUSIVE! You are highly encouraged to review your notes, slides,
articles, and textbook to get a full understanding of the material covered since last exam.
1) Why firms go global?
a. Increased Revenue
i. Only if th
Chapter 1: Logistics, the Supply Chain, and Competitive
a. Wars have been won and lost because of
i. The defeat of the British in the American
ii. The Second World War, the allied forces
in the invasio
How can this concept benefit a firm?
For every entity in the company they need to treat someone else in the company as a
customer. Everyone is a customer to somebody.
It reduces defects and passion on high quality customer service.
Doing more with less b.
Seeks to minimize inventory of components and
work in progress and to move towards a JIT environment wherever possible c.
Space, people, inventory, etc.
Which company is credited with po
1. Know the difference between international, multi-national, and global firms
International Generally exports products to other countries
Multi-National In countries the company operates the products are tailored to that
country and function
Review period method
regular review of stock levels with fixed intervals between orders when the amount to be
ordered is determined with reference to predetermined replenishment level.
re-order point method
-As part of inventory control when products are
What pressures today are leading to markets being very time sensitive, and hence
requiring lower lead times from firms?
Shortening product life cycles: New variances every 6 months which is a small
window of time to make profit from investment.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer
request. The supply chain includes not only the manufacturer and suppliers, but also
transporters, wholesalers, retailers, etc. and even custo
transaction elements (4)
i.Order cycle time
iii.Order fill rate
iv.Order status information
post-transaction elements (5)
i.Availability of spares
ii.Call out time
iii.First time fix rate
market driven supply chain
One that is designed around the needs of the customer, from the customer inwards
instead of factory outwards
Does a truly market driven supply chain depend on a forecast?
Doesnt depend on forecasts because it needs real time mar
new rules of competition
a.Supply chain competition: p&g works with distributors, suppliers, retailers to reduce
cost and bring up customer service
b.Sellers markets become buyers markets
c.Commoditization in many markets: Customers cant differentiate pro
the postponement strategy
a. A process which the commitment of a product to its final form or location is delayed
for as long as possible.
b. Waits for final customer demand
Restaurant- waiting for customer order
Paint- mix paint when c
Chapter 2: Logistics and Customer Value
a. The mission of logistics management was
defined by providing the means whereby
customers service requirements are met at the
b. The objective should be to establish a chain of