Strategic Management of Resources Flashcards

Which manufacturing strategy builds products to a standard design and holds finished goods inventory to fill orders immediately?

Answer: Make-to-stock (MTS)

Make-to-stock produces standard products in anticipation of demand, maintaining finished goods inventory to provide immediate delivery to customers.

In an 'assemble-to-order' (ATO) environment, the decoupling point is at:

Answer: Subassembly or component level

ATO holds inventory at the semi-finished subassembly level and assembles to specific customer configurations only when an order is received.

What is the 'product-process matrix' concept used for in manufacturing strategy?

Answer: Aligning the appropriate production process structure with the product's volume and variety characteristics

The product-process matrix maps product volume and variety combinations to appropriate process types (job shop, batch, line, continuous), guiding strategic manufacturing decisions.

Which concept describes the phenomenon where small demand fluctuations at the retail level are amplified into large swings upstream in the supply chain?

Answer: Bullwhip effect

The bullwhip effect occurs when demand variability is amplified as it moves upstream in a supply chain, causing excessive inventory swings at wholesale, distribution, and manufacturing levels.

A 'make-or-buy' decision in manufacturing strategy should consider which primary factors?

Answer: Cost, capacity, core competency, and supply chain risk

Make-or-buy decisions weigh factors including total cost, whether the activity is a core competency, available internal capacity, quality control, and supply chain flexibility and risk.

What is 'postponement' as a supply chain strategy?

Answer: Delaying product differentiation as late as possible in the supply chain to maintain flexibility

Postponement (delayed differentiation) keeps products in a generic state as long as possible, adding customization features only when specific customer demand is known.