6.Within any supply chain are many systems, includ ing yarious manufacturingstorage, transportation, and retail systems.7.The materials, warehousing, and outbound logistics management also have lists ofcriteria.These includeminimizing transportation costsbytakingadvantageofquantity discounts, minimizing inventory levels, and quickly replenishing stock8.Inventory appears in the supply chain in several forms: raw material inventory.Work-in-process (WIP) inventory, and finished prod uct inventory9.In a distribution system, each stage or level (ie., the warehouse or the retailers) isoftenreferredtoasanechelon10.Inmodern supply chains, information replaces inventory.11.One of themost frequent suggestions for decreasingor eliminatingthebullwhipeffect is to centralize demand information, that is, by providing each stage of thesupply chain with complete information on actual customerdemand12.Lead time typically include the components: order lead times, and information leadtimes.13.future customer demand is influenced by such issues as pricing. promotions. andthe release of new products.14.Information enables us to integrate the various stages in the supply chain15.Improved forecasting technigues and information systems reduce the othercomponentsof leadtime16.product variety greatly increased the complexity of supply chain management17.Network configuration may involves issues relating to plant location, warehouselocation,andretailerlocation.18. Transportation rates are almost linear with distance but not with volume19. The echelon inventory at any stage or level of the system is equal to the inventoryon hand at the echelon, plus all downstream inventory20.Informatioin changes the way supply chains can and should be effectively managed, andthesechangesmayleadtolowerinventories21. With longer lead times, a small change in the estimate of demand variabilityimpliesa significantchangein safetystock,reorderlevel,andthusinorderquantities
6.Within any supply chain are many systems, including various manufacturing, storage, transportation, and retail systems. 7.The materials, warehousing, and outbound logistics management also have lists of criteria. These include minimizing transportation costs by taking advantage of quantity discounts, minimizing inventory levels, and quickly replenishing stock. 8.Inventory appears in the supply chain in several forms: raw material inventory, Work-in-process (WIP) inventory, and finished product inventory. 9.In a distribution system, each stage or level (i.e., the warehouse or the retailers) is often referred to as an echelon. 10.In modern supply chains, information replaces inventory. 11.One of the most frequent suggestions for decreasing or eliminating the bullwhip effect is to centralize demand information; that is, by providing each stage of the supply chain with complete information on actual customer demand. 12.Lead time typically include the components: order lead times, and information lead times. 13.future customer demand is influenced by such issues as pricing, promotions, and the release of new products. 14.Information enables us to integrate the various stages in the supply chain. 15.Improved forecasting techniques and information systems reduce the other components of lead time. 16.product variety greatly increased the complexity of supply chain management. 17.Network configuration may involves issues relating to plant location, warehouse location, and retailer location. 18.Transportation rates are almost linear with distance but not with volume. 19. The echelon inventory at any stage or level of the system is equal to the inventory on hand at the echelon, plus all downstream inventory. 20.Informatioin changes the way supply chains can and should be effectively managed, and these changes may lead to lower inventories. 21. With longer lead times, a small change in the estimate of demand variability implies a significant change in safety stock, reorder level, and thus in order quantities
22.as transportation costs become more significant,retailers may orderquantities thatallowthem totakeadvantageoftransportationdiscounts23.the transportation costs are lowest when large quantities of items are transportedbetween stagesof the supply chain.24.Supply Chain Management is a set of approached utilized to efficiently integratesuppliers,manufacturers,warehouses,andstores,sothatmerchandiseisproducedanddistributed at the right quantities, to the right locations, and at the right time, in orderto minimize_systemwide costs while satisfyving service level requirements.25. logistics management is the process of planning, implementing and controlling theefficient, cost effectiveflow and storage of raw materials.in-process_inventory,finished goods, and related information from point-of-origin to point-of-consumptionfor the purpose of conforming to customer requirements.26.customers located in close proximity to each other are aggregated using a gridnetworkor clusteringtechnique27.Typically,three distinct outbound distribution strategies are utilized.They are:Direct shipment, Warehousing. Cross-docking28.Four types of strategic alliances are typically significant in supply chainmanagement. Third-party logisties' retailer supplier partnerships (RSP),distributorintegration(D)manufacturerand supplier.29.There are four ways to implement delayed differentiation.They are resequencing.commonality,modularity,standardization.30.Key Issues in Supply Chain Management are Distribution NetworkConfiguration,InventoryControl,SupplyChainIntegrationand StrategicPartneringProductDesignInformationTechnologyandDecision-SupportSystems,CustomerValue.31.The goal of effective inventory management in the supply chain is to have the correct inventoryat the right place at the right time to minimize system costs while satisfying customer servicerequirements.32.Inventory can appear in many places in the supply chain,and several forms:raw materialinventory,work-in-process( WIP) inventory,finished product inventory33.The zero inventory ordering property can be observed by considering a policy which orders areplaced and received when the inventory level is not zero34.Total cost at every cycle:Average inventory holding cost in a cycle: Q/2Cycle time :T=Q/D
22. as transportation costs become more significant, retailers may order quantities that allow them to take advantage of transportation discounts. 23.the transportation costs are lowest when large quantities of items are transported between stages of the supply chain. 24.Supply Chain Management is a set of approached utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize systemwide costs while satisfying service level requirements. 25. logistics management is the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption for the purpose of conforming to customer requirements. 26.customers located in close proximity to each other are aggregated using a grid network or clustering technique. 27.Typically, three distinct outbound distribution strategies are utilized. They are： Direct shipment, Warehousing, Cross-docking. 28. Four types of strategic alliances are typically significant in supply chain management. Third-party logistics (3PL), retailer supplier partnerships (RSP), distributor integration (DI), manufacturer and supplier. 29．There are four ways to implement delayed differentiation. They are resequencing, commonality, modularity, standardization. 30. Key Issues in Supply Chain Management are Distribution Network, Configuration, Inventory Control, Supply Chain Integration and Strategic Partnering, Product Design, Information Technology and Decision-Support Systems, Customer Value. 31.The goal of effective inventory management in the supply chain is to have the correct inventory at the right place at the right time to minimize system costs while satisfying customer service requirements. 32.Inventory can appear in many places in the supply chain,and several forms:raw material inventory,work-in-process(WIP) inventory,finished product inventory. 33.The zero inventory ordering property can be observed by considering a policy which orders are placed and received when the inventory level is not zero. 34.Total cost at every cycle: Average inventory holding cost in a cycle: Q/2 Cycle time : T =Q/D 2 hTQ K +
KDhQAverage total cost per unit time:Q235.To find the optional ordering policy in the economic lot size model,we consider the level as afunction of time .The time between two successive replenishments as a cycle time.36.Many companies design their planing processesas if theinitial forecast wasan accuraterepresentation of realityIn this case,one needsto rememberthe following principles of allforecasts:the forecast is always wrong,the longer the forecast horizon.the worse theforecast,aggregate forecasts are more accurate.37.Standard deviation is a measure of how much demand tends to vary around the average,andcoefficientofvariation isthe ratioof standarddeviationtoaveragedemand38.First rule of inventory management states that forecast demand is always wrong39.Inventory turnover radio=Annual sales/Average inventory level,this definition implies that anincrease in inventory turnoverleads to a decrease in average inventorylevels.40.Supply chain master planning is defined as the process of coordinating and allocatingproduction and distribution strategiesand resourcesto maximize profitorminimizesystem widecost.41The production plan would bedetermined at the plant,independentlyfrom the inventory plan.42.For the same quoted lead time,the optimized supply chain provides reduce costs;for a givencost,theoptimizedsupplychainprovidesbetterleadtime43..An important challenge in any network design project is to evaluate the impact of the networkon inventory,in general,apd dn plesitiohingSinventory in particular.44.Inventory Turnover=Annual Sales /Average Inventory Level45. Handing costs include labor and utility costs that are proportional to annual flow through thewarehouse.46.Fixed cost is typically proportional to warehouse size (capacity)but in a nonlinear way47.storage costs represent inventory holding costs,which are proportional to average positiveinventorylevels.48.We argue that abundant information could help reduce variability in the supply chain,helpsuppliersmake better forecasts,enable lead time reductions,enables retailers to better serve theircustomers by offering tools for locating desired items,enables retailers to react and adapt to supplyproblemsmorerapidly.49.An attractivepolicy used in practiceby each stage of the supply chain is the periodic reviewpolicy where the inventory policy is characterized bya singleparameter.the base-stock level50.The increase in variability is magnified with increasing lead time.51.Forward buying ,implies that retailers purchase large quantities during distributor's andmanufactures'discount and promotion timeand order relatively small quantitiesat other timeperiods52.Inflated orders placed by retailers during shortage periods tend to magnify the bullwhip effect.53.Base-StockLevel=LXAVG+zXSTDXL54.Orderup-topoint=55.OEM typically use an assemble-to-order strategy,while their contract manufacturers typicallyhavetobuild capacitydue to long lead time,inadvanceto receiving ordersfrom the OEM.56.To determine the impact of centralized demand information on the bullwhip effect,wedistinguish betweentwo types of supply chains,one with centralizeddemand informationanda
Average total cost per unit time: 2 hQ Q KD + 35.To find the optional ordering policy in the economic lot size model ,we consider the level as a function of time .The time between two successive replenishments as a cycle time. 36.Many companies design their planing processes as if the initial forecast was an accurate representation of reality.In this case ,one needs to remember the following principles of all forecasts:the forecast is always wrong;the longer the forecast horizon,the worse the forecast;aggregate forecasts are more accurate. 37.Standard deviation is a measure of how much demand tends to vary around the average,and coefficient of variation is the ratio of standard deviation to average demand. 38.First rule of inventory management states that forecast demand is always wrong. 39.Inventory turnover radio=Annual sales/Average inventory level,this definition implies that an increase in inventory turnover leads to a decrease in average inventory levels. 40.Supply chain master planning is defined as the process of coordinating and allocating production and distribution strategies and resources to maximize profit or minimize system wide cost. 41The production plan would be determined at the plant,independently from the inventory plan. 42.For the same quoted lead time,the optimized supply chain provides reduce costs;for a given cost,the optimized supply chain provides better lead time. 43.An important challenge in any network design project is to evaluate the impact of the network on inventory,in general,and on positioning inventory in particular. 44.Inventory Turnover = Annual Sales / Average Inventory Level 45. Handing costs include labor and utility costs that are proportional to annual flow through the warehouse. 46.Fixed cost is typically proportional to warehouse size (capacity) but in a nonlinear way. 47.storage costs represent inventory holding costs,which are proportional to average positive inventory levels. 48.We argue that abundant information could help reduce variability in the supply chain,help suppliers make better forecasts ,enable lead time reductions,enables retailers to better serve their customers by offering tools for locating desired items,enables retailers to react and adapt to supply problems more rapidly. 49.An attractive policy used in practice by each stage of the supply chain is the periodic review policy where the inventory policy is characterized by a single parameter,the base-stock level. 50.The increase in variability is magnified with increasing lead time. 51.Forward buying ,implies that retailers purchase large quantities during distributor’s and manufactures’ discount and promotion time and order relatively small quantities at other time periods. 52.Inflated orders placed by retailers during shortage periods tend to magnify the bullwhip effect. 53.Base-Stock Level = L × AVG + z × STD× √L 54.Order up-to point = 55.OEM typically use an assemble-to-order strategy,while their contract manufacturers typically have to build capacity due to long lead time ,in advance to receiving orders from the OEM. 56.To determine the impact of centralized demand information on the bullwhip effect,we distinguish between two types of supply chains;one with centralized demand information and a t LSt ˆ L + z
secondwithdecentralizeddemandinformation57.In this centralized supply chain ,each stage of the supply chains receives the retailer's forecastmeandemandandfollows abase-stockinventorypolicybased on thismeandemand.58.Three supply chain integration strategies :Push, pull, push- pull strategy.59.Thebullwhip effect leads to inefficient resources utilization,because planning and managingare much more difficultif a manufacturer determine production capacity based on peakdemand,most of thetime the manufacturer has resources sitting idle60.Pull-based systems are often difficult to implement_when lead time are so long that it isimpractical to react to demand information.Also,in pull-based systems,it is frequently moredifficult to take advantage of economics of scale in manufacturing and transportation sincesystems are not planned far ahead in time.61.The supply chain time line defined as the time that elapses between the procurement of rawmaterial,that is,the beginning of the time line,and the delivery of an order to the customer,that isthe end of the time line.62.Everything elsebeing equal,higherdemanduncertaintyleadstopreferenceformanaging thesupply chain based on realized demand :a pull strategy.63.Smaller demand uncertainty leads to an interest in managing the supply chain based on along-termforecast:apushstrategy.64.The interface between the push portion of the supply chain and the pull portion of the supplychain is forecast demand65.Demand shaping :a process in which the firm determines the impact of various marketing planssuchaspromotionpricingdiscounts and newproduct introduction.66.The forecast is not completely accurate,and hence an important output from thedemand-forecast and demand-shaping processes is an estimate of the accuracy of the forecast,theso-called forecast error,measured according to its standard deviation.67.E-business strategies were supposed to_reduce_cost,increase service level,and increaseflexibility68.DistributorIntegration (DI)createrisk-poolingopportunitiesacrossthevariousdistributors;enable different distributors to develop different areas of expertise69.In Strategic alliances,Both risks and rewards are shared.70.Partnerships that lead to better advertising or increased access to new market channels can bebeneficial.71.Alliances between appropriate firms can help to improve operations by lowering system costsand cycle times.Also,the difficult transitions between old and new technologies can be facilitatedby the expertise of one of the partners.72.In addition to addressing competitive issue ,alliances can help to build financial strength.73.The most frequently cited benefit of using 3PL providers is that it allows a company to focusonitscorecompetencies74.Flexibility in service offerings may be achieved through the use of third parties, which may beequipped to offer retail customers a much larger variety of services than hiring firm.75.The most obvious disadvantage of the useof 3PL providers is the loss of control inherent inoutsourcing aparticularfunction.76.The types of retailer-supplier partnerships can be viewed on a continuumAt one end is
second with decentralized demand information. 57.In this centralized supply chain ,each stage of the supply chains receives the retailer’s forecast mean demand and follows abase-stock inventory policy based on this mean demand. 58.Three supply chain integration strategies :Push, pull, push–pull strategy. 59.The bullwhip effect leads to inefficient resources utilization,because planning and managing are much more difficult.If a manufacturer determine production capacity based on peak demand,most of the time the manufacturer has resources sitting idle. 60.Pull-based systems are often difficult to implement when lead time are so long that it is impractical to react to demand information.Also,in pull-based systems,it is frequently more difficult to take advantage of economics of scale in manufacturing and transportation since systems are not planned far ahead in time. 61.The supply chain time line defined as the time that elapses between the procurement of raw material,that is ,the beginning of the time line,and the delivery of an order to the customer ,that is the end of the time line. 62.Everything else being equal,higher demand uncertainty leads to preference for managing the supply chain based on realized demand :a pull strategy. 63.Smaller demand uncertainty leads to an interest in managing the supply chain based on a long-term forecast:a push strategy. 64.The interface between the push portion of the supply chain and the pull portion of the supply chain is forecast demand. 65.Demand shaping :a process in which the firm determines the impact of various marketing plans such as promotion pricing discounts and new product introduction. 66.The forecast is not completely accurate,and hence an important output from the demand-forecast and demand-shaping processes is an estimate of the accuracy of the forecast,the so-called forecast error,measured according to its standard deviation. 67.E-business strategies were supposed to reduce cost,increase service level,and increase flexibility. 68.Distributor Integration (DI) create risk-pooling opportunities across the various distributors;enable different distributors to develop different areas of expertise. 69.In Strategic alliances ,Both risks and rewards are shared. 70.Partnerships that lead to better advertising or increased access to new market channels can be beneficial. 71.Alliances between appropriate firms can help to improve operations by lowering system costs and cycle times.Also,the difficult transitions between old and new technologies can be facilitated by the expertise of one of the partners. 72.In addition to addressing competitive issue ,alliances can help to build financial strength. 73.The most frequently cited benefit of using 3PL providers is that it allows a company to focus on its core competencies. 74.Flexibility in service offerings may be achieved through the use of third parties,which may be equipped to offer retail customers a much larger variety of services than hiring firm. 75.The most obvious disadvantage of the use of 3PL providers is the loss of control inherent in outsourcing a particular function. 76.The types of retailer-supplier partnerships can be viewed on a continuum.At one end is
informationsharing,andanotherisaconsignmentscheme77.In a continuous replenishment strategy,sometimes called rapid replenishment ,vendors receivePOS data and use these data to prepare shipments at previously agreed-upon intervals to maintainspecific levelsofinventory149503132133341353839142434/148U14515556585960626364651675254/3010009UU272731.747576177
information sharing,and another is a consignment scheme. 77.In a continuous replenishment strategy,sometimes called rapid replenishment ,vendors receive POS data and use these data to prepare shipments at previously agreed-upon intervals to maintain specific levels of inventory. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 5 5 5 51 52 53 54 55 56 58 59 60 61 62 63 64 65 66 67 68 69 70 71 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 8 8 8 72 73 74 75 76 77 8 8 8 8 8 8