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• Study notes based on the provided text

Chapter 9

• Predictable variability is a change in demand that can be forecast
• Capacity management includes using a seasonal workforce during peak seasons to increase capacity
• Capacity management also uses subcontracting, with firms subcontracting peak production to keep internal production stable and cheap
• Forward buying is when customers move future purchases to the present, often due to promotions or sales

Chapter 10

• The bullwhip effect involves fluctuations in orders increasing as they move up the supply chain because of a lack of coordination
• Forward buying involves customers moving up future purchases to the present through promotions/sales
• Behavioral obstacles contributing to the bullwhip effect include stages viewing actions locally without considering the impact on other stages
• "A milk run" enables managers to reduce lot sizes by combining shipments for several retailers on a single truck
• "Turn and earn" supply allocation is an inventory management strategy where suppliers allocate products to retailers or distributors based on sales performance and stock turnover rates

Chapter 11

• A lot or batch refers to the quantity a stage of a supply chain produces or purchases at a time
• Cycle inventory is the average inventory in a supply chain resulting from production or purchases in lot sizes exceeding customer demand
• An inventory profile is the sequence of a lot arriving and demand depleting inventory until another lot arrives
• Price discrimination is when a firm charges its customers different prices to maximize profits
• Handling cost includes incremental receiving and storage costs that vary with the quantity of product received
• Occupancy cost reflects the incremental change in space cost due to changing cycle inventory

Chapter 12

• Product fill rate: the fraction of product demand that is satisfied from product in inventory
• Cycle service level (CSL): the fraction of replenishment cycles that end with all customer demand being met
• Lead time is the time between when an order is placed and when it is received
• Coefficient of variation measures the size of the uncertainty relative to demand

Chapter 13

• Tailored sourcing is when firms use a combination of supply sources, one focused on cost and another on flexibility/responsiveness

Chapter 14

• Transportation method characteristics include:
• Air: high cost, low hubs, limited availability, high cost of labor and fuel
• Truck: most goods, low fixed cost, longer LTL
• Rail: commodities over long distance, high fixed cost, long transportation time
• Water: limited areas, large loads at low cost, container shipping
• Intermodal: more than one mode, convenient for shippers, information is exchanged (risk)
• Pipeline: high fixed cost, primarily for petroleum, natural gas
• Package Carriers: small packages, quick delivery, time sensitive
• Tailored transportation uses different transportation networks and modes based on customer and product characteristics

Chapter 15

• Procurement is the process companies use to acquire raw materials, components, products, services, or other resources from suppliers
• Outsourcing involves a supply chain function being performed by a third party
• Offshoring is producing the product at a low-cost location that may be far from the market
• Warehouse aggregation happens when a third party increases supply chain surplus by aggregating warehousing needs over several firms
• Revenue-sharing contracts involve manufacturers charging retailers a lower wholesale price but sharing a fraction of the retailer's revenue

Chapter 16

• Revenue management uses pricing to increase supply chain surplus and profit from a limited availability of supply chain assets
• Two forms of supply chain assets: capacity and inventory

Chapter 17

• The tragedy of the commons is a dilemma when the common good does not align perfectly with individual entities

Exam Section 2 Question Type

• Forward buying is moving up future purchases to the present, such as a promotion attracting buyers who would have purchased later
• Price discrimination is charging customers different prices, like airlines charging varying prices
• Coefficient of variation measures the level of uncertainty relative to demand, with low CV indicating low variability and high demand meaning high uncertainty
• Transportation modes advantages/disadvantages:
• Air: Faster delivery time (A), high cost (D)
• Truck: Majority of US land transportation (A), limited to local routes (D)
• Water: Low cost (A), longer delivery times (D)
• Two forms of supply chain assets and examples:
• Capacity: ability to handle production capabilities
• Inventory: maintaining inventory to prevent out of stocks and inefficiencies

Wal-Mart Supply Chain Management Case Analysis

• Wal-Mart's supply chain is streamlined with efficient logistics, inventory control, and strategic supplier relationships, using technology to update supplier data in real time for cost leadership
• Wal-Mart's supply chain gives a competitive advantage through scale, technology, and cost, but it requires improvements in e-commerce integration
• Walmart's CEO could use big data, analytics, AI, and machine learning to improve supply chain, automate warehouses/distribution centers, strengthen e-commerce/delivery networks, address sustainable suppliers, expand potential partners, and improving local collaboration