Apics Exam 1 Bscm- Wb Session 8

Front 1

MRO

Back 1

Maintenance, repair, and operating supplies. items used in general operations and maintenance. like spare parts.

Front 2

Purchasing Activities

Back 2

see 8-10 for a diagram of the flow of activites and how each is categorized.

Front 3

Purchasing must establish specifications based on

Back 3

1. quantity

2. cost

3. function- use and quality level needed

Front 4

3 general ways to source goods

Back 4

1. sole sourcing-goods provided by one supplier. likely bc they are the only ones.

2. multiple sourcing- provided my multiple suppliers. reduces the risk.

3. single sourcing- provided by one supplier but there are other options available. this is to focus on long term relationship

Front 5

Supplier partnering

Back 5

- might happen in sole or single sourcing. the 3 key factors in partnering:

1. long-term commitment

2. trust

3. shared vision

Front 6

Consignment

Back 6

a type of partnering. the supplier physically gives the product to the customer for use and the supplier retains ownership of the product until used.

Front 7

VMI

Back 7

a type of partnering. the buyer owns the goods and the visibility of the buyers forecasts are shared with the supplier

Front 8

Categories covered in a contract

Back 8

1. price

2. terms

3. delivery

4. quality

5. quantity

Front 9

Purchases may be generated by the following techniques

Back 9

1. conventional (Non-MRP) Requisitions- found in ETO and low volume MTO production environments- where requirements are unique.

2. MRP planned order releases- release of planned orders

3. Kanban signals- the signal goes to the supplier. no requisitions or POs issued. contractual relationship needed.

4. buffer replenishment

Front 10

The purchasing cycle

Back 10

1. general requistions issued

2. Issue POs- review req and select supplier

3. follow up- the PO is tracked to make sure due dates will be met

4. receive goods

5. approve payment

Front 11

Supplier Scheduling

Back 11

a more progressive contract buying that requires due dates to a supply partner for inclusion in its master scheduling process. not in the scope of this course.

Front 12

One type of system to monitor supplier performance and provide feedback...

Back 12

balanced score card!

Front 13

Physical distribution

Back 13

movement of goods from suppliers to their customers through distribution channels. It adds value in two ways:

1. place value- locates good where they are available to customers.

2. time value- makes goods available when customers want them

Front 14

Physical Distribution activities

Back 14

see 8-37 for a list if it is relevant.

Front 15

Business-Level objectives of distribution inventory Management

Back 15

*if a company uses distribution centers

1. provide required levels of customer service

2. minimize the cost of transportation and handling

3. minimize inventory cost

4. interact with the factory to minimize scheduling problems.

Front 16

3 systems used to control distribution inventory

Back 16

1. pull (decentralized) system

2. push (centralized) system

3. DRP

Front 17

Pull inventory system

Back 17

distribution centers order what they need from a central center when required, without regards to other distribution centers, available inventory, production schedules at the factory.

demand at distribution center might be stable but it orders from central supply once order point is reached and this creates lumpy demand and facotry might not have enough lead time to meet demand from all Distr. centers.

Front 18

Push Inventory System

Back 18

all forecasting and order decisions are made centrally using visibility of whats happening at the other centers.

this improves coordination among factory, central supply and distribution center, but does not fully respond to local demand

Front 19

DRP

Back 19

Distribution Requirements Planning. this involved collaborating between the distribution center, central supply, and the factory. visual of logic is on pag 8-44. the logic uses time-phased netting rather than order point system. in the end, the distribution center sends order releases to the central supply and all orders are added to the factorys master schedule

Front 20

objectives of transportation

Back 20

1. provide high levels of customer service

2. keep in transit time and inventory to a minimum

3. minimize transportation costs

Front 21

TL and LTL

Back 21

Truck Load. and less than truckload. Practice besiding between using a distribution center or not pg 8-53

Front 22

reverse logistics

Back 22

a complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling

Front 23

Two categories of reverse logistics

Back 23

1. asset recovery- return of actual products.

2. green logistics- the responsibility of the supplier to dispose of packaging or environmentally sensitive materials.

Front 24

5 basic modes of transportation

Back 24

1. rail- best for: large loads over long distance. cheaper than road for large and bulky

2. road- low capital compared to rail. door to door service. Best: small goods in dispersed market

3. air- high cost. suitable for high-value, low weight and emergency items

4. water- low operating costs per ton-mile. slow. most useful: moving low-value, bulky, long distance where route is available.

5. pipeline- low operating costs. impervious to weather. useful for large, constant volumes.

Front 25

two types of carriers

Back 25

1. for hire- common (for the public) or contract (hauls for specific customers under contract)

2. private- companies own and lease their own equipment to carry goods.

Front 26

Decision factors for selecting carrier

Back 26

pg 8-63

Front 27

categories of shipping costs

Back 27

1. line haul costs- fuel, wages etc. depend on distance not weight.

2. pickup and delivery costs

3. terminal handling costs

4. billing and collecting costs

Front 28

how to reduce transportation costs

Back 28

1. increase weight shipped to reduce line haul cost

2. consolidate shipments to reduce ... costs.

Front 29

carrier rate cost structure types

Back 29

1. based on full truck load

2. based on less than full load.

rates depend on commodity shipped, and the weight and distance. these factors might be considered: value, density, perishibility, packaging

Front 30

Warehousing

Back 30

PG 8-71 decribes different processes and activities.

Front 31

stock location systems

Back 31

1. fixed location- assign an item to a permanement location in warehouse

2. floating (random) location- assign space wherever it is appropriate. advantage is cube utilization.