Logistics & Supply Chain Management short only questions

Product or target group

• Product-centric, focus on individual products (volume)
• Customer centric, focus on special target groups

Strategy resp. Requirement category

• Direct, open competition, competitive offers and tenders
• Trade of bulk goods, focus on independent trade
• Lean supply chains and system integration
• Competing constellations of interlinked companies
• Interlinked network supply between competitors
• Capital goods control the offering, market leadership is the goal
• Partnerships to the benefit of the customer
• Virtual offering- no production only customer (man. Outsourced)

Flow perspective category

• Distribution, physical progression of a product
• Material flow, organization that purchase, convert and sell materials
• Workflow, pre-defined sequence of activities within an organization
• Information flow, flow of information between integrated partners.

The business model is how the company makes money. Are you a B2B company or a B2C? Is your product digital or physical? All these needs to be answered and many more before moving onto SCM

The supply chain model is there to make the product available to your customer and ensure profitability on a landed or delivered cost perspective

E-business refers to the use of internet and digital technologies for business processes. The goal of e-business is

• Avoidance of repeated capturing of the same data
• The acceleration of communication between business partners regarding the procurement of goods, delivery and payment transactions
• Competitive advantage through faster response to events both in operations and in the marketplace
• Closer involvement of suppliers
• The reduction of inventory
• Intensifying customer service
• Integration of value-creation partners

• Procurement side: value contribution of the suppliers to the products and services of the own company
• In-house: the value contribution made by the company's own products and services
• Sales side: refers to the value that arises through and in the interaction with the customers
• Business models: deals with the integration of the different strategic directions and business models from suppliers, the own company and customers
• Processes: focuses on the overarching collaboration between suppliers, your own company and customers
• Sustainability: focuses on the long-term success of the company, taking into account economics, ecology and social issues

Which statements regarding the definitions of the term «Supply Chain» are true, and which are false?

1. The organizations-related view of a Supply Chain is, among other things, a stringing together of organizational units within a company, which produce goods and services for customers and delivers these as well.: True
2. The organization-related view of a Supply Chain is a chain of supplier processes, which produce goods and services for customers and deliver these as well.: False
3. A «single-stage Supply Chain» depicts only the direct customer relationships.: False
4. A «single-stage Supply Chain» depicts only the direct customer relationships.: False

Which statements regarding the goals of digital networking in e-business are true, and which are false?

1. One goal is the avoidance of repeated acquisition or input of the same data.: True
2. One goal is to outsource customer care and, thus, virtually bind customers to the company.: False
3. One goal is to involve suppliers, especially subcontractors, more closely in the operational process.: True
4. One goal is the integration of value-adding partners.: True

Which statements regarding the «Characteristics of a Value Network» are true, and which are false?

1. A Value Network describes a business model that utilizes digital Supply Chain concepts.: True
2. A Value Network is oriented towards the competitive factors time and flexibility.: True
3. A Value Network has the main objective to be able to quickly and flexibly react to customer requirements.: True
4. A Value Network has the main objective to be able to quickly and flexibly react to supply bottlenecks.: False

Which statements regarding "value creation in dynamic supply chains" are true, and which are false?

1. The value creation is to be seen, from a purely company internal perspective, in order to reduce complexity.: False
2. Dynamic supply chains resp. a network of organizations must place value creation in the center.: True
3. Dynamic supply chains are a network of organizations that are are linked together in both the forward and backward directions.: True
4. Dynamic supply chains are a network of organizations which create value within different processes and activities.: True

Within a Supply Chain strategy the desired added value must be defined. Which questions about this are true, and which are false?

1. Which customers does the company wish to address with its products?: False
2. How far does the vertical range of manufacturing extend?: True
3. Will the company offer a standard product in a single version for all customers or customized product series?: True
4. With which products and services will the company enter into competition?: True

Which statements regarding the definitions of the term «Supply Chain» are true, and which are false?

1. In a «multiple-stage Supply Chain» the complexity increases disproportionately with increasing number of stages.: True
2. In a «multiple-stage Supply Chain» companies deal with, at least, six stages.: False
3. Companies mostly have sufficient resources to monitor a «Supply Chain» throughout all stages.: False
4. A «multiple-stage Supply Chain», in the extreme, depicts all stages, from the raw materials through to the disposal resp. recycling of used or obsolete products.: True

Which statements regarding a «Supply Chain» are true, and which are false?

1. The Supply Chain is the implementation of the Logistics Concept.: False
2. «Logistics» and «Supply Chain» are Synonyms.: False
3. The term «Supply Chain» is much more narrowly defined as the term «Logistic Chain».: False
4. A Supply Chain includes, in addition to Logistics, also the corresponding money and information flows.: True

Which statements regarding the definitions for the term "Supply Chain" are true, and which are false?

1. The approach «Demand Chain» translates a strategic goal into an instruction for suppliers to take action.: False
2. The approach «Demand Chain» focuses, among other things, on the market demand towards suppliers.: True
3. The approach «Demand Chain» translates a supplier goal into an instruction for customers to take action.: False
4. The approach «Demand Chain» focuses, among other things, on the control of the Supply Chain through demand pull from the customers.: True

Which statements regarding "characteristics resp. categorizations of Supply Chains" are true, and which are false?

1. Supply chains with the business strategy resp. business requirement "immediate, open competition" have their focus on cost minimization.: False
2. Customer-centric supply chains have the focus on special target groups.: True
3. Supply Chains with the business strategy or business requirement "trade of bulk goods" have their focus on competitive offers and tenders as well as intensive trade.: False
4. Product-centric supply chains have the focus on individual products.: True

Which statements regarding Competition of Supply Chains are true, and which are false?

1. Leading Companies have realized that competition truly takes place between supply chains.: True
2. The weakest link in the supply chain determines market success.: True
3. A big challenge in customer management is to minimize costs without reducing customer service levels.: True
4. The strongest link in the supply chain determines market success.: False

Which statements regarding "virtual companies" are true, and which are false?

1. A "virtual company" is a permanent fusion of the core competencies of the companies involved.: False
2. A "virtual company" is a sequence of market partners, that work together as a virtual unit.: True
3. Between the market partners exists a real-time information exchange, interaction and continuous optimization as well as complete transparency.: True
4. A "virtual company" has many legal and organizational interconnections.: False

Which statements regarding «Integration Concept for the Design of Business Processes» are true, and which are false?

1. The Enablers include personnel, organization and information technology.: True
2. Results are also performance indicators like, for example, customer satisfaction or throughput time.: True
3. The company context (surroundings) contains factors like personnel, organization and information technology.: False
4. The Results come from business activities resp. the execution of the business processes.: True

Which statements regarding the Definitions fo the term "Supply Chain" are true, and which are false?

1. In "market-driven supply chains", market decisions determine the characteristics of the supply chain.: True
2. In "market-driven supply chains" the number of market decisions increases the complexity and dynamics.: True
3. In "market-driven supply chains" no decisions are made by supply chain partners.: False
4. In "market-driven supply chains," the many market decisions increase the uncertainty regarding their effects.: True

Which Statements regarding the Definitions of the term «Supply Chain» are true, and which are false?

1. The ultimate goal of the approach «systematic alignment of all required parties» is to provide the Market with products and services.: False
2. The approach regarding a «Systemic Alignment of all required parties» contains the connections between suppliers and suppliers as well as customer-centric approaches.: True
3. The «Supplier-Centric Approach» describes a Supply Chain as a network of Suppliers which manufacture goods.: True
4. The «Customer-Centric Approach» describes a Supply Chain which contains all required levels (direct or indirect), to fulfill a customer request.: True

Which statements regarding "drivers of supply chain strategies in the digital age" are true, and which are false?

1. Traditional supply chains have evolved into networked, dynamic supply chains.: True
2. Flows of material, payments and information were previously seen as linear and coupled; networked digital technologies have changed this permanently.: True
3. With the use of the internet, the integration of partners in the supply chain became static.: False
4. The use of networked digital technologies has accelerated the information flows as a result.: True

Which statements regarding competition of Supply Chains are true, and which are false?

1. In todays business environment transparency, efficiency and speed are also key factors for success.: True
2. Through the Utilization of earnings potentials in procurement, inventories can be maximized.: False
3. The continuous globalization requires that companies must holistically plan and optimize their value-adding and logistics processes.: True

hI = high impact on the financial results

lI = low impact on the financial results

hS = high supply risk

lS = low supply risk

Four quadrants are

lS & lI = Non-critical products.

• Large product variety
• High logistical complexity
• Labour-intensive
• -> System contracts and e-commerce-solution

lS & hI Leverage products

• Alternative sources available
• Substitution possible
• -> competition by invitation to tender

hS & lI = Bottleneck products

• Monopolistic market conditions
• High barriers to entry
• -> secure supply and seek alternative sources of supply

hS & hI = Strategic products

• High share of cost
• Dependency upon suppliers
• -> supplier performance based partnership

Tha market balance goes through right in the middle

The four quadrants of the procurement portfolio deliver the SCOR model

Procurement management (purchasing) can be divided into strategic and operational areas. Where the strategic part focuses on effectiveness: tracking the right procurement goals , and operational focus on efficiency: achieve procurement goal with little effort

Long-term in strategic procurement is

• Optimization of the supplier relationship
• Ensure security of supply for the company
• Increase competitiveness through procurement efficiency
• Operational

Short term to supply all customer with the wished product.

A procurement portfolio is a analytical tool in procurement management where products and suppliers are assigned to four quadrants based on effect on the financial results ( the higher the respective volume the greater the influence of the product on the financial result) and supply risk

Inventory management of product component is subject so specific rules. The required components and spare parts should always be available on time and place in quality and quantity. Missing components and spare parts bring production process to a standstill.

Goal of ABC and XYZ analyses is the management of components and spare parts.

• A parts: capital intensive, high risk of standstill
• B parts: standard pards
• C parts: small parts and consumable, low value, large quantity
• X goods: good forecast accuracy, small parts, production-synchronous control
• Y goods: average forecast accuracy, stock procurement
• Z goods: safety stock required, neither production-synchronous nor buffer storage

Supplier Relationship Management [...] encompasses all activities related to supplier selection, supplier development and supplier integration. Supplier management is fed by the operational and strategic design of procurement processes. The overarching goals of supplier relationship management lie in optimizing supplier relationships, reducing processing costs, lowering purchase prices, improving product quality and continuously monitoring procurement activities.

E-Procurement is supporting the relationships and processes of a company to its suppliers through networked information technology. Categorised in direct and indirect goods

Basic types are the

• Buy-side-system (buyer e-procurement system
• Sell-side system (seller e-procurement system e.g. online shop
• marketplaces

Electronic Data Interchange (EDI) is the asynchronous electronic exchange of structured data between the application systems of business partners, free from media discontinuity and human intervention

Advantages

• Avoid multiple data entry
• Reducing number of manual activities
• Reduction of administrative measures
• Acceleration of the communication process

Disadvantages

• High acquisition costs
• More elaborate comparison of master data
• For EDI across platforms of EDI intermediaries:
  • Low transparency over fees
  • Violation of access rights

A forecast is by definition "an estimate what you think will happen". In business sense forecasting is demand forecasting. So make a forecast which customer will want which products, how many and when. Based upon the forecast, you may stock up inventory. There are two types of demand. 1. independent -> forecast or demand for the next quarter/year 2. dependent this is calculated based on a forecast. (e.g. tire supplier produces tires based on the forecast sale of cars of their customers)

How to forecast accurately
1. shorten forecast horizon. Day-to-day = most accurate

1. Start with an aggregate forecast. (product groups, not individual products)
2. Use multiple sources of input.

Good forecast characteristics

1. Timely. Continuously updated up to the current date. It is dangerous to make decision based on outdated forecast
2. Simple to understand and to use.

Goal of exponential smoothing is to make an exact forecast about the future even if you had strong swings in the past (ups and downs).

For that old forecast get compared to the actual sell. What is to much or too less is used as % for planning error. This % is called alpha and is usually between 0 and 1 (1=1 no smoothing). Best so far are alpha = (0.2, 0.4). 

So for calculation you need f.g:

A= forecast march= 5.200

B= actual sell march= 5.050

C= alpha = 0.2

D = alpha = 0.8

Forecast april = A + C(B-A) = 5.170

Forecast april = A + D(B-A) = 5.080

This means the smaller the smoothing factor alpha the bigger the smoothing of the curve. For long term smoothening.

The bigger the smoothing factor aopha the smaller the smoothing of the curve. Good for short term smootheningo. 

Economic Order Quantity. The order size that will result in the lowest total inventory cost (EOQ)

EOQ= in units. So if we place order in each EOQ result then it is the cheapest possible inventory cost.

D in units, costs in $,

H is based on the estimate how much it will cost you to hold your item in inventory for a year. E.g. a phone in inventory. Phone is valued 100$ and a 40 % holding cost = it costs 40$ per unit to hold it for a year

The bigger the orders the fewer orders you need to place. Cause there are annual ordering costs which at first over seek the annual holding costs.

When holding cost are equal ordering cost you are in the perfect position.

Which statements regarding Procurement Management are true, and which are false?

1. Strategic procurement management pursues an increase in purchasing efficiency.: False
2. Operational procurement management pursues an optimization of purchasing effectiveness.: False
3. Strategic procurement management is primarily long-term oriented.: True
4. Procurement management is divided into a strategic and an operative area.: True