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Study Guide: Final Exam
What is the increase in the variance of replenishment orders farther up the supply chain away from the end customer? |
The Bullwhip effect |
Causes of the bullwhip effect |
1. Demand forecasting (errors, info delays, long lead times)
2. Order batching (fixed order costs, seek transportation econ of scale,quantity discounts)
3. Price fluctuations, promotions, and forward buying (sales & promotions, sales force incentive structure)
4.Rationing & gaming (inflated orders due to potential shortage) |
Where is the MUDA during bullwhip? |
- Mistmatch between demand & supplier
- Silo's created by suppliers |
If Bullwhip measure is >1 |
Variance amplification is present |
If Bullwhip measure is = 1 |
No amplification is present |
If Bullwhip measure is <1 |
Implies a smoothing or dampening scenario as orders move up the supply chain to suppliers |
What is the objective of supply chain management |
The objective of SC management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer |
Transportation modeling |
An iterative procedure for solving problems that involves minimizing the cost of shipping products from a series of sources to a series of destinations |
The Nearest Neighbor procedure |
1. Start with a node at the beginning of the tour (the depot node)
2. Find the node closest to the last node added to the tour
3. Go back to step 2 until all nodes have been added
4. Connect the first and last nodes to form a complete tour |
5S's of lean production |
1. Sort
2. Simplify
3. Shine
4. Standardize
5. Sustain |
Kanban |
Japanese word for card
is an authorization for the next container of material to be produced
pulls material through processes |
Formula for Takt time |
Takt time = Total work time available/Units required |