Answer: TRUE Page Ref: Difficulty: Difficult AACSB: Application of knowledge 14 Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company.
Private industrial networks can be viewed as "extended enterprises" in the sense that they often begin as ERP systems in a single firm and are then expanded to include the firm's major suppliers. EDI is a communications standard for sharing business documents such as invoices, purchase orders, shipping bills, product stocking numbers SKUsand settlement information among a small number of firms.
Discuss the role of safety inventory in the supply chain and the trade-offs involved.
B EDI lacks universal standards. C lower price transparency. A It is typically unstructured. These firms are linked in a series of connected transactions. Answer: Supply chain management systems coordinate and link the activities of suppliers, shippers, and order entry systems to automate the order entry process from start to finish including the purchase, production, and moving of a product from a supplier to a purchasing firm. Private industrial networks also referred to as private trading exchanges, or PTXs are Internet-based communication environments that extend far beyond procurement to encompass truly collaborative commerce. Answer: In B2B e-commerce, social networks are beginning to be common tools for procurement offers, managers of supply chains, logistics managers and others engaged in B2B ecommerce. Dell offers few options for modems or software that can be installed on its machines Large product variety is not required in all cases such as grocery products Price and Brand Price cannot be a differential in many industries Companies like Dell and Wal-Mart use cost reduction strategies to improve profit Premium brands can ask for premium prices Supply chain has to be more responsive Opportunities for companies that can offer new services Not easily transformed to commodities Brand names become a guarantee for quality Pricing in services more difficult Value-Added Services Additional services to improve profits Differentiate from competition More important now than before because: Increased commoditization of products Need to get closer to the customer.
Usually related to the ability to satisfy a customers delivery date Direct relationship between the ability to achieve a certain level of service and supply chain cost and performance. B existing EDI networks. Participants in the supply chain are using social networks for purchasing, scheduling, exception handling, and deciding with their B2B customers and suppliers.
C It requires a significant investment of time and money. C MRO goods.
Impact of aggregation on safety inventory
D each purchaser. They often involve joint product development and design, integration of computer systems, and tight coupling of the production processes of two or more companies. D B2B systems move towards cloud computing providers and away from individual corporate data centers. This activity alone is likely to produce the largest benefits and justify the cost of developing private industrial networks. Public social network sites like Facebook and Twitter can be excellent for coordinating the flow of information among business partners through the supply chain. B It requires the large network owners to give up some of its independence. It includes not only the firms themselves but also the relationships between them and the processes that connect them. B indirect goods. A Much of the expense of the system is shifted from the B2B network provider to the firm. The goal is for organizations to collaboratively design, develop, build, and manage products throughout their life cycles. Supply chain simplification refers to the reduction of the size of a firm's supply chain. D sugar. C E-distributors operate in horizontal markets. C demand chain visibility. Answer: TRUE Page Ref: Difficulty: Difficult AACSB: Application of knowledge 14 Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company.
A It is typically unstructured. It includes not only the firms themselves but also the relationships between them and the processes that connect them. Private industrial networks can do much more than just serve a supply chain and efficient customer response system.
C rubber molding. A E-distributors make money by charging a mark-up on products they distribute. These networks can be industry-wide, but often begin and sometimes focus on the voluntary coordination of a group of supplying firms centered about a single, very large manufacturing firm. Manufacturers that use or produce highly engineered parts use private industrial networks to coordinate both their internal design and marketing activities, as well as related activities of their supply and distribution chain partners. By the late s, a new form of computer-to-computer communication called electronic data interchange EDI emerged. These strategic partnership programs are essential for just-in-time production models. Companies cannot excel along all these dimensions A company needs to be dominating in one attribute, differentiate itself on another, and be adequate in all the rest. Standardization initiatives such as the Supply Chain Councils reference models. If this goal is achieved, hundreds of millions of dollars of excess inventory and capacity could be wrung out of an industry. B The Internet of Things begins to impact how supply chains operate. Private industrial networks focus on continuous business process coordination between companies and usually focus on a single sponsoring company that "owns" the network, sets the rules, establishes governance, and invites firms to participate at its sole discretion. C industry committees. One form of collaboration is industry-wide collaborative resource planning, forecasting, and replenishment CPFR , which involves working with network members to forecast demand, develop production plans, and coordinate shipping, warehousing, and stocking activities to ensure retail and wholesale shelf space is replenished with just the right amount of goods. In many cases, supply chain social networks are private and owned by the largest firm in the supply chain network. D B2B systems move towards cloud computing providers and away from individual corporate data centers.
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