Supply Chains

Question 1

Effectiveness

Answer 1

the degree to which a goal is achieved

Question 2

Efficiency

Answer 2

the relationship between resources expended and benefits gained in achieving a goal

Question 3

Customer Relationship Management

Answer 3

CRM systems are designed to support

• Marketing (market research + targeted marketing)
• Sales
• Customer Service

Question 4

Supply Chain

Answer 4

consists of procurement of raw materials, processing materials into goods (manufacturing), and delivering goods

Question 5

Supply Chain Management (SCM)

Answer 5

monitoring, controlling, and facilitating supply chains

Question 6

Material Requirements Planning (MRP)

Answer 6

inventory control

• determines when inventory needs to be restocked
• can predict future needs based on long-term demand forecasts
• takes customer demand as input, works back to calculate resources needed to produce goods

Question 7

Bill of Materials (BOM)

Answer 7

list of all raw materials and subcomponent demands to produce a product

Question 8

Economic Order Quantity (EOQ)

Answer 8

optimal quantity of a raw material that minimizes overstocking and saves cost, without missing production deadlines

Question 9

Master Production Schedule (MPS)

Answer 9

specifies how production capacity is to be used to meet customer demands

• just-in-time manufacturing
• ships parts directly to assembly lines
• save on the cost of warehousing raw materials and parts

Question 10

Manufacturing Resource Planning 2

MRP II

Answer 10

combines Material Requirements Planning with other related activities to plan the entire manufacturing process
- uses Master Production Schedule

Question 11

Enterprise Resource Planning (ERP)

Answer 11

manages daily operations and facilitates planning and drives efficiency