BA 360 Terms Midterm 3 - Lecture notes 11,12,14,16 PDF

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Professor Showghis BA 360 Class Midterm 3 Terms...

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Chapter 11: An Example of Forward Integration: - A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributers. How to reduce supply chain risk:

-Research and assess possible risks -Innovative planning -Reduce potential disruptions -Prepare responses for negative events -Flexible, secure supply chains -Diversified supplier base Local optimization - focusing on local profit or cost minimization based on limited knowledge - not a opportunity for effective management in the supply chain? Bullwhip effect - the increasing fluctuation in orders that move through the supply chain -The tendency for larger order size fluctuations as orders are relayed through the supply chain -Creates unstable production schedules, expensive capacity change costs,longer lead times, obsolescence -Damage can be minimized with supplier coordination and planning Bullwhip Effect Graph -A short-term increase in consumer demand -Retailers respond by ordering more -Suppliers believe sales are huge and respond accordingly -Wholesalers order even more to be sure retailers can be adequately supplied Which of the following supply-chain strategies creates value by allowing suppliers to have economies of sale? Long-term partnering with a few suppliers Vertical integration appears particularly advantageous when the organization has A large market share Which of the following is not an advantage of a virtual company? total control over every aspect of the organization An advantage of a joint venture over vertical integration is Reduced risk Giving quantity discounts based on annual volume instead of single order size helps to control which supply chain issue? the bullwhip effect...