5 Questions
What is the main cause of difficulty in matching supply and demand?
Uncertainty in demand and supply
Which department within a firm wants more finished goods inventory and fast delivery?
Marketing/Sales
What is the objective of a supply chain?
Maximize overall value created
In the example provided, how much revenue does Dell receive from a customer for a computer?
$2000
What does supply chain value represent?
Difference between product worth to the customer and supply chain effort
Study Notes
Supply Chain Management
- The main cause of difficulty in matching supply and demand is uncertainty in demand, supply, or both.
Organizational Perspectives
- The sales and marketing department within a firm typically wants more finished goods inventory and fast delivery to meet customer demand.
Supply Chain Objectives
- The objective of a supply chain is to create a competitive advantage by providing a high level of customer service at a lower cost.
Business Examples
- In Dell's direct-to-customer model, for each computer sold, Dell receives the full revenue from the customer.
Supply Chain Performance Metrics
- Supply chain value represents the difference between the revenue generated by the supply chain and the total cost of operating the supply chain.
Test your knowledge of supply chain management challenges related to matching supply and demand. This quiz covers topics such as uncertainty in demand and/or supply, changing customer requirements, fragmentation of supply chain ownership, and conflicting objectives within the supply chain.
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