CBS Supply Chain & Operations Strategy Flashcards

Nearshoring as an operations strategy means:

Answer: Relocating operations to a nearby country, often in the same region

Nearshoring relocates operations to a nearby country, offering a balance between cost savings and shorter supply chains compared to offshoring.

The bullwhip effect in supply chain management describes:

Answer: Amplification of demand variability as orders move up the supply chain

The bullwhip effect occurs when small fluctuations in consumer demand get amplified at each upstream stage of the supply chain, leading to large swings in orders.

In operations strategy, 'capacity utilization' refers to:

Answer: The percentage of total production capacity actually being used

Capacity utilization measures how efficiently a company uses its available production capacity, expressed as a percentage of maximum output.

A make-or-buy decision involves determining whether to:

Answer: Produce a component internally or purchase it from a supplier

A make-or-buy decision weighs the costs and strategic benefits of producing something in-house versus outsourcing it to an external supplier.

Which operations concept focuses on eliminating waste (muda) and continuously improving processes?

Answer: Lean manufacturing

Lean manufacturing, rooted in the Toyota Production System, focuses on eliminating waste in all forms to increase value and efficiency.

Supply chain resilience is best described as a supply chain's ability to:

Answer: Anticipate, adapt to, and recover from disruptions

Supply chain resilience is the capacity to anticipate disruptions, withstand shocks, and recover quickly to maintain continuous supply flow.