A primary objective of a lean enterprise is to:
The primary objective of a lean enterprise is to analyze and focus on the value stream across all functions to maximize value for the ultimate customer. This involves identifying and eliminating waste (non-value-added activities) in processes to streamline operations and enhance efficiency. The focus is on creating value from the customer's perspective, ensuring that every step in the process contributes to this goal. Continuous improvement (Kaizen), employee development, and supplier collaboration are also essential elements of lean, but the overarching objective is maximizing customer value through value stream optimization.
Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press.
Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill.
Sourcing via an internet-based trading exchange would be most appropriate for which of the following types of raw materials?
According to the APICS CSCP - Supply Chain Management Certification, an internet-based trading exchange is a type of e-sourcing platform that connects buyers and sellers of goods and services online, allowing them to conduct transactions, compare prices, and access market information. Sourcing via an internet-based trading exchange would be most appropriate for inexpensive material for which there are several substitutes, as this type of material has low strategic importance and high supply availability, and can benefit from the lower transaction costs, increased competition, and reduced lead times offered by the online platform.
A distributor wants to run a promotion on an item that a manufacturer has just introduced. Which of the following processes would provide the most useful input data for evaluating the impact of promotions?
Impact of Promotions on Demand: Evaluating the impact of promotions requires understanding how promotions influence customer demand. Demand planning involves forecasting and analyzing customer demand patterns.
Relevant Data: Demand planning provides historical sales data, predictive analytics, and customer insights that are critical for assessing the potential uplift in sales due to promotions.
Production, Inventory, and Transportation: While production scheduling, inventory management, and transportation planning are important, they do not directly provide data on customer demand, which is essential for evaluating promotion impacts.
Chopra, S., & Meindl, P. (2015). 'Supply Chain Management: Strategy, Planning, and Operation.' Pearson.
Christopher, M. (2016). 'Logistics & Supply Chain Management.' Pearson UK.
A company develops annual forecasts for key products and enters into annual contracts with key suppliers based on the forecasts. Which of the following benefits would the company most likely receive from this approach?
Entering into annual contracts with key suppliers based on forecasts typically allows a company to negotiate better pricing due to the guaranteed volume over a set period. Suppliers are more likely to offer discounts and favorable terms when they have a predictable and steady demand. This approach can also lead to cost savings from bulk purchasing and long-term relationships, contributing to lower procurement costs. While shorter delivery lead times, improved service, and higher-quality products are potential benefits, the most direct and likely benefit from this approach is lower prices.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2020). Purchasing and Supply Chain Management. Cengage Learning.
Burt, D. N., Petcavage, S., & Pinkerton, R. (2010). Supply Management. McGraw-Hill Education.
Which of the following operations is the best example of reuse?
Utilizing wastepaper as packaging material is the best example of reuse due to the following reasons:
Direct Reuse: Reuse involves using a product or material again for the same or a different purpose without significant alteration. Wastepaper used as packaging material fits this definition as it is repurposed directly from its original use without extensive processing.
Sustainability: Reusing wastepaper for packaging reduces the need for new packaging materials, thereby conserving resources and reducing environmental impact. It supports sustainable practices by minimizing waste and promoting a circular economy.
Cost Efficiency: Using wastepaper as packaging material can lower costs for companies by reducing the expenditure on new packaging supplies. It also decreases waste disposal costs.
Waste Reduction: This practice helps in diverting wastepaper from landfills, contributing to waste reduction efforts and enhancing overall waste management efficiency.
Environmental Benefits: Reusing materials such as wastepaper lowers the carbon footprint associated with producing new packaging materials, supporting broader environmental sustainability goals.
Linton, J. D., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains: An introduction. Journal of Operations Management, 25(6), 1075-1082.
Guide Jr, V. D. R., & Van Wassenhove, L. N. (2009). The evolution of closed-loop supply chain research. Operations Research, 57(1), 10-18.
