Business: Supply Chain Management

What are the five primary components of a supply chain?

The five primary components are suppliers, manufacturing, distribution, retail, and customers.

What does the acronym JIT stand for in inventory management?

JIT stands for Just-In-Time, a strategy where materials are produced or ordered only when they are needed.

What is the term for the final stage of the delivery process to the end user?

Last-mile delivery is the final step where goods move from a distribution hub to the customer.

What is the primary goal of Lean principles in a supply chain?

The primary goal of Lean is to eliminate waste and maximize value-added activities.

What does the acronym EOQ stand for?

EOQ stands for Economic Order Quantity, which is the ideal order size to minimize total inventory costs.

Name one of the seven wastes identified in Lean manufacturing.

The seven wastes include overproduction, waiting, transport, overprocessing, inventory, motion, and defects.

Explain the concept of the 'Bullwhip Effect' in a supply chain.

The Bullwhip Effect occurs when small fluctuations in consumer demand cause increasingly larger fluctuations in inventory levels further up the supply chain.

What is the purpose of maintaining 'Safety Stock'?

Safety stock is extra inventory held to mitigate the risk of stockouts caused by demand uncertainty or supply delays.

In ABC inventory analysis, what characterizes 'Category A' items?

Category A items are high-value goods that represent a small percentage of total quantity but a large percentage of total value.

What is a 'Make vs. Buy' decision?

A Make vs. Buy decision is the strategic choice between producing a component internally or purchasing it from an external supplier.