SCM 301 1st Edition Lecture 7Outline of Last Lecture I. Example QuestionsOutline of Current Lecture I. Causes of the bullwhip effectII. Current Trends in Supply ChainIII. Greening of Supply ChainsIV. Supply Management TrendsV. Roles of the Supply BaseVI. Make or BuyVII. Purchasing: VIII. How many Suppliers?IX. Weighted Criteria Evaluation SystemX. Delphi MethodXI. Vendor Managed InventoryCurrent LectureXII. Causes of the bullwhip effecta. Price fluctuationsb. Periodic order policies at wholesaler and manufacturer levelsc. Rationing/shortage gamingXIII. Current Trends in Supply Chaina. Increasing Supply Chain responsivenessb. Firms increasingly need to be flexiblec. Supply chains need to benchmark industry performance and improve continuouslyXIV. Greening of Supply Chainsa. Harmful activities to the environment potentiallyb. Work harder to eliminate thisc. 75% consumers influenced by firms environmental friendlinessd. recycling and conservation are growing alternativesXV. Supply Management Trendsa. Outsourcing of non-core activities to suppliersb. Focusing of operationsc. Reduction in supply base as companies shift from multiple to single sourcingd. Long-term buyer supplier relationshipse. Partnerships rather than adversarial trading f. The outcomes are companies establishing new relationships with their suppliersXVI. Roles of the Supply BaseThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a. List of suppliers that a firm uses to acquire its materials, services, supplies, and equipment. b. Preferred suppliers provide: information on market, capacity for meeting unexpected demand, and cost efficiency. XVII. Make or Buya. Outsourcing: buying from suppliersb. Backward vertical integration: acquiring sources of supplyc. Forward: acquiring customer operationsd. Reasons: cost advantage, insufficient capacity, lack of expertise, qualityXVIII. Purchasing: a. Goals: ensure uninterrupted flows of raw materials, improve quality, optimize customer satisfaction.b. Contributes byi. Actively seeking better materialsii. Improving quality with strategic suppliersXIX. How many Suppliers?a. Single source: riskyb. When evaluating suppliers used in collaborative relationship, purchase costs less important with key suppliersc. Key supplier selection conducted by cross functional team using scorecards.XX. Weighted Criteria Evaluation Systema. Supplier evaluationb. Monitor performance datac. Evaluate between 0 and 100d. Ongoing auditsXXI. Delphi Methoda. Choose experts to participate in forecastb. Questionnaire XXII. Vendor Managed Inventorya. Suppliers manage buyer inventories to reduce inventory carrying and stockout