Supply Chain

1751 Words Feb 22nd, 2012 8 Pages
Assignment # 1
SCMT 200
Q1-1. Explain the following terms and provide a “real world example” of each term.

a). Second-tier supplier:
The first tier’s supplier’s supplier is the focal firm’s second tier supplier. Second tier suppliers are companies that sell and deliver goods and services to a first tier supplier. An automobile company could have a second tier supplier that would supply materials or parts to another company which would then supply materials or parts to another company which would then supply them to the manufacturer. A real world example of a second-tier supplier is “Wisconsin Aluminium” which supplies aluminium fuel filter housing to Mechanical Devices Company. Mechanical Devices uses the
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For these firms, even moderate supply chain management success can mean lower purchasing and inventory costs, better product quality and higher levels of customer service—all leading to more sales.

Q1-4). Explain how the emergence of the concepts of JIT (Just in Time) and TQM (Total Quality Management) in the 1980’s contributed to the development of supply chain management.

In the 1980’s, intense global competition began and manufacturers utilized JIT and TQM strategies to improve quality, manufacturing efficiency and delivery times. JIT is a lean-production system and it results in faster delivery times, lower inventory levels and better product quality. The supply chains had to be developed because an important aspect of a lean system is the quality of incoming purchased items and the quality of the various assemblies as they move through the production processes. This is due to the characteristically low levels of inventory purchased and work in process in lean-oriented facilities. Thus, firms employing concepts of lean usually have a TQM strategy in place to ensure continued quality compliance among suppliers with internal production facilities. So there was a real need of a good internal control system and chain management processes to be developed and that is how supply chain management got designed. And every supply chain design

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