Questions and Answers
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?
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What does supply chain value represent?
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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.
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