Questions and Answers
What is a supply chain?
A supply chain consists of the flow of products and services from raw materials manufacturers to retailers.
What are the main components of a supply chain?
Raw materials manufacturers, component manufacturers, final product manufacturers, wholesalers, distributors, and retailers.
What is supply chain management?
The planning and management of all activities involved in sourcing, procurement, conversion, and logistics management.
Supply chain management only focuses on logistics activities.
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Which of the following is NOT a component of supply chain management?
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The design and management of __________ processes across organizational boundaries to meet customer needs is crucial in supply chain management.
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What is required for effective supply chain management?
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Study Notes
What is a Supply Chain?
- A supply chain encompasses the flow of products and services from raw materials to consumers.
- Key entities in a supply chain:
- Raw materials manufacturers
- Component and intermediate manufacturers
- Final product manufacturers
- Wholesalers and distributors
- Retailers
- Transportation and storage activities connect these entities.
- Information, planning, and integration activities are essential for supply chain cohesiveness.
Supply Chain Structure
- Supply chain operates in two directional flows:
- Upstream: Involves suppliers.
- Downstream: Involves customers.
- Tiered structure demonstrated through a tomato supply chain example:
- Tier 3: Tomato growers
- Tier 2: Tomato paste factories
- Tier 1: Ketchup factory
- Information and cash flows are critical components of each tier.
What is Supply Chain Management?
- Involves planning and management of activities such as sourcing, procurement, conversion, and logistics.
- Coordination with channel partners like suppliers, intermediaries, third-party service providers, and customers is crucial.
- Focuses on designing and managing seamless, value-added processes across organizational boundaries.
- Aim: Meet end customer needs while ensuring high customer satisfaction and low costs.
- Requires collaboration among supply chain partners for effective order management.
Importance of Supply Chain Management
- Enhances production efficiency and speed of service.
- Contributes to overall system efficiency.
- Plays a role in increasing market share and sales.
- Critical for maintaining competitive advantage in a global marketplace.
Origins of Supply Chain Management
- Understanding its development provides context for its current practices and principles.
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Description
This quiz covers the introduction to supply chain management, focusing on fundamental concepts provided in Chapter 1 of the textbook by Wisner, Tan, and Leong. Understand the flow of products and services and the importance of supply chains in today's economy.
