Gill runs the operations department of a manufacturing organisation in Wales. The department emulates best practices from competitors through benchmarking and has recently introduced Six Sigma to prevent operational problems. Which of the following best describes Gill's approach to operations function?
This aligns with externally neutral, which includes:
Benchmarking against competitors
Adopting best practices (Lean, Six Sigma, BPR, TQM)
Emulating successful industry models
(LO 2.1, See p.99)
Which of the following are benefits of optimising the supply chain? Select ALL that apply.
Optimising the supply chain brings benefits such as increased flexibility, higher profit margins, better demand forecasting, and waste reduction.
Use of AI and technology (D) is incorrect because it is a method to achieve supply chain optimisation, not a benefit itself.
(LO 1.1, See p.3)
When designing a supply network, which of the following stages should be completed first?
The correct sequence for designing a supply network is:
Determine strategic objectives
Confirm the network scope
Analyse potential risks
Determine the approach for managing material and information flow
Track material and information flow
Since network scope defines the boundaries, scale, and overall structure of the network, it must be confirmed first. (LO 1.1, See p.3)
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?
While organisations generally try to fulfil customer demand, there are times when they strategically choose not to. A common reason is maintaining a premium image---limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)
Company A manufactures wheels for Company B, which manufactures cars. Traditionally, Company A would complete the wheels and conduct quality assessments before sending them to Company B, which would then begin assembling cars. However, a new CEO at Company B has introduced a technology system that enables simultaneous production, meaning Company B starts manufacturing cars at the same time Company A begins producing wheels.
What is this new system known as?
Start to start means two different organisations at different levels of the supply chain begin their work simultaneously rather than sequentially. This is the opposite of a start to finish system, where the next process starts only when the previous one is completed. (See LO 1.2, p.19)
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