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Questions and Answers
What does SPS stand for in Supply Chain Management?
Supply Chain Surplus
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?
Match the components of the supply chain with their roles:
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The goal of Supply Chain Management (SCM) is to minimize customer satisfaction.
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What is an example of improved visibility in the supply chain?
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What is the role of a Distributor in the supply chain?
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___ is the ability to integrate various systems across the supply chain.
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What is the primary concern of a Customer in the supply chain?
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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.
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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.
