A new supplier in a different country will offer substantial savings on existing components. Which part of the organization should be consulted to ensure this is a good strategy for the firm?
When considering a new supplier in a different country that offers substantial savings, it is crucial to consult the logistics department. The logistics team will evaluate the feasibility of international transportation, potential delays, customs requirements, and overall supply chain reliability. They can assess whether the cost savings are justified when considering the total landed cost, including transportation, tariffs, and potential risks associated with international sourcing.
Human resources (B) is less relevant in evaluating supplier selection based on cost savings and logistics.
Marketing (C) would be involved if the decision impacted product offerings or customer perceptions.
Information technology (D) might be consulted for integration but is not the primary concern for logistics and cost savings evaluation.
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.
Which of the following factors typically is the most significant impediment to implementing collaborative commerce?
Corporate culture is often the most significant impediment to implementing collaborative commerce. Collaborative commerce involves different organizations working closely together, sharing information and processes to optimize the supply chain. Here's why:
Technology barriers: While important, these can often be overcome with investment in the right solutions.
Security: Concerns can be addressed through robust security protocols and measures.
Corporate culture: This can be deeply ingrained and resistant to change. Organizational silos, lack of trust, and resistance to sharing information are common cultural barriers.
Return on investment (ROI): While crucial, it's often a result of overcoming cultural and technological barriers. Corporate culture is the underlying factor that influences the willingness and ability of organizations to collaborate effectively.
McAfee, A., & Brynjolfsson, E. (2008). Investing in the IT That Makes a Competitive Difference.
Lambert, D. M. (2008). Supply Chain Management: Processes, Partnerships, Performance.
In an advanced planning system, which of the following modules feeds the master planning module?
In an advanced planning system (APS), the demand planning module feeds the master planning module. Demand planning involves forecasting customer demand and creating a demand plan that considers historical data, market trends, and other factors. This information is crucial for the master planning module, which uses it to develop production, procurement, and inventory plans to meet the forecasted demand efficiently.
Purchasing planning focuses on procurement activities and is influenced by the master plan.
Distribution planning deals with the logistics of distributing products and relies on the master plan.
Fulfillment planning involves ensuring customer orders are fulfilled, also based on the master plan.
Stadtler, H., Kilger, C., & Meyr, H. (2014). 'Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies.'
Chopra, S., & Meindl, P. (2016). 'Supply Chain Management: Strategy, Planning, and Operation.'
Which of the following terms represents a time series forecasting technique?
Moving average represents a time series forecasting technique for the following reasons:
Smoothing Technique: Moving average is used to smooth out short-term fluctuations and highlight longer-term trends or cycles in the data. It calculates the average of a fixed number of past observations and moves forward through the time series data.
Forecasting: This method helps in predicting future values based on the average of past data points. By considering a specified number of previous observations, it provides a simple yet effective way to forecast future trends.
Reduction of Noise: By averaging a number of past observations, the moving average technique reduces the impact of random variations and noise in the data, making it easier to identify underlying trends.
Versatility: Moving averages can be adapted to different periods (e.g., short-term, medium-term, long-term) by adjusting the number of observations included in the average. This flexibility makes it useful for various types of time series data.
Application: It is widely used in various fields, including finance, economics, and supply chain management, for tasks such as inventory forecasting, demand planning, and trend analysis.
Hyndman, R. J., & Athanasopoulos, G. (2018). Forecasting: principles and practice. OTexts.
Makridakis, S., Wheelwright, S. C., & Hyndman, R. J. (1998). Forecasting: methods and applications. John Wiley & Sons.
A grocery store found that ground beef sales increased when burns were a featured sales item. This customer relationship management (CRM) technique is called:
Data mining is the CRM technique used when a grocery store identifies a correlation between ground beef sales and buns being featured as a sales item. Data mining involves analyzing large datasets to discover patterns and relationships that can inform business decisions. By uncovering these insights, the store can strategically plan promotions and inventory to maximize sales. Data trading (B) involves exchanging data with other entities, point-of-purchase (POP) promotion (C) refers to marketing at the location of purchase, and upselling (D) is encouraging customers to purchase more expensive items or add-ons.
Berry, M. J. A., & Linoff, G. (2011). Data Mining Techniques: For Marketing, Sales, and Customer Relationship Management. Wiley.
Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
