Podcast
Questions and Answers
What does SPS stand for in Supply Chain Management?
What does SPS stand for in Supply Chain Management?
Supply Chain Surplus
The formula for Supply Chain Surplus (SPS) is ___ - Total Costs Incurred.
The formula for Supply Chain Surplus (SPS) is ___ - Total Costs Incurred.
Total Value
Which of the following is NOT a component of the supply chain?
Which of the following is NOT a component of the supply chain?
Match the components of the supply chain with their roles:
Match the components of the supply chain with their roles:
Signup and view all the answers
The goal of Supply Chain Management (SCM) is to minimize customer satisfaction.
The goal of Supply Chain Management (SCM) is to minimize customer satisfaction.
Signup and view all the answers
What is an example of improved visibility in the supply chain?
What is an example of improved visibility in the supply chain?
Signup and view all the answers
What is the role of a Distributor in the supply chain?
What is the role of a Distributor in the supply chain?
Signup and view all the answers
___ is the ability to integrate various systems across the supply chain.
___ is the ability to integrate various systems across the supply chain.
Signup and view all the answers
What is the primary concern of a Customer in the supply chain?
What is the primary concern of a Customer in the supply chain?
Signup and view all the answers
Study Notes
Supply Chain Overview
- Supply chain encompasses the entire network involved in producing and delivering products or services, from raw material sourcing to final customer delivery.
- Key activities include manufacturing, transportation, warehousing, and distribution.
- Objective of Supply Chain Management (SCM) is to enhance flow efficiency and effectively meet customer demand while minimizing costs.
Supply Chain Surplus Formula
- Supply Chain Surplus (SPS) = Total Value – Total Costs Incurred.
- Represents the total value created for participants in a supply chain, measured as the customer’s value of the final product minus total incurred costs.
Measurement of Total Value
- Product Utility: Refers to the usefulness of a product to the consumer.
- Customer Satisfaction: Indicates how products meet or exceed consumer expectations.
Measurement of Total Cost
- Production Cost: Expenses related to manufacturing goods.
- Transportation Cost: Expenditures for moving products through the supply chain.
- Storage Cost: Costs for warehousing products before they reach the consumer.
Components of Supply Chain
- Supplier: Extracts raw materials and sources inputs for manufacturing.
- Manufacturer: Transforms raw materials into finished goods.
- Distributor: Moves goods from manufacturers to retailers.
- Retailer: Sells products directly to consumers.
- Customer: Purchases and uses the final product.
Circular Economy in Supply Chain
- Encourages companies to utilize waste as raw materials for others, integrating recycling and remanufacturing practices.
- Aims to reduce carbon footprint through sustainable practices.
Network Level Approach
- Views supply chain as an interconnected network optimizing performance through activity coordination and decision-making across entities.
- Emphasizes improved efficiency and customer service.
Key Elements of Modern Supply Chain
- Interoperability: Integrates different information systems and processes across organizations, ensuring seamless communication and efficiency.
- Visibility: Enables real-time tracking of all components from raw materials to finished products within the supply chain.
- Reduced Complexity: Simplifies processes by minimizing intermediaries and redundant operations, enhancing efficiency.
Example Applications
- Jollibee's usage of systems like chicken SAD and SAP for managing inventory and production schedules.
- Online platforms like Shopee, Lazada, and Temu illustrate visibility and tracking in modern supply chains.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the fundamental principles of Supply Chain Management as discussed in Week 2 of IEP114. It focuses on the formula for Supply Chain Surplus (SCS) and the measurement of total value in supply chains, including product utility and costs incurred.
