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Ch 8 Review

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Chapter 08 Review
Achieving Operational Excellence & Customer Intimacy (pp. 270 –301)

1. Recognize that the ‘heart’ of an ERP is a central database or data warehouse: Suite of integrated software modules and a common central database 2. Identify the four major functional areas of all business organizations: sales & marketing, finance & accounting, manufacturing & production, and human resources 3. Know the four (4) business values of an ERP: Increase operational efficiency, Provide firm wide information to support decision making, Enable rapid responses to customer requests for information or products, Include analytical tools to evaluate overall organizational performance. 4. Be able to distinguish upstream from downstream in a supply chain: Upstream- Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them. Downstream- Organizations and processes responsible for delivering products to customers 5. Know the relationships between JIT, safety stock, and the bullwhip effect: Inefficiencies cut into a company’s operating costs. They can waste up to 25 percent of operating expenses 6. Recognize the difference between a supply chain planning system and supply chain execution system: Supply chain planning systems- model existing supply chain, demand planning, optimize sourcing & manufacturing plans, establish inventory levels and identify transportation modes/Supply chain execution systems-Manage flow of products through distribution centers and warehouses. 7. Recognize the difference between an intranet and an extranet; recognize how each is used in supply chain management, specifically global and concurrent supply chains: Intranet-to improve coordination among internal supply chain processes, Extranet- to coordinate supply chain processes shared with their business partners 8.

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