18 Questions
What is the objective of every supply chain?
To maximize the overall value generated
What is supply chain surplus, and how is it calculated?
Supply chain surplus is the difference between the customer value and the supply chain cost (Supply Chain Surplus = Customer Value - Supply Chain Cost)
What is the only source of revenue for any supply chain?
The customer
What is the impact of increasing the supply chain surplus on the contributing members of the supply chain?
A growth in supply chain surplus increases the size of the total pie, allowing contributing members of the supply chain to benefit
What is the key to effective supply chain management?
The management of supply chain assets and products, information, and fund flow
What is the difference between the value of the product and its price?
The difference between the value of the product and its price is the consumer surplus
What are the three pillars of sustainability in a supply chain?
Social, environmental, and economic.
What is the primary role of sourcing in a supply chain?
The choice of who will perform a particular supply chain activity.
How does information affect the performance of a supply chain?
It directly affects each of the other drivers of performance.
What are the two fundamental challenges in measuring and reporting social and environmental pillars in a supply chain?
The scope of measurement and the use of absolute or relative measures of performance.
What is the primary objective of pricing in a supply chain?
To determine how much a firm will charge for its goods and services.
What is the relationship between transportation and supply chain performance?
Transportation can take the form of many combinations of modes and routes, each with its own performance characteristics.
What is the primary goal of supply chain operations?
to handle incoming customer orders in the best possible manner
What is the time frame considered in supply chain planning?
a quarter to a year
What is an example of a supply chain design or strategic decision?
PepsiCo Inc.'s decision to purchase two of its largest bottlers
What are the three primary drivers of supply chain performance?
Facilities, Inventory, and Transportation
What is the primary focus of supply chain strategy or design?
Structuring the supply chain over the next several years
What is the primary constraint in supply chain planning?
The supply chain's configuration determined in the strategic phase
Learn about the objectives and key concepts in supply chain management, including value generation and supply chain surplus. Understand how to maximize customer value while minimizing costs.
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