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Questions and Answers
Which stage is NOT typically part of a supply chain?
Which stage is NOT typically part of a supply chain?
What is considered an integral part of a supply chain?
What is considered an integral part of a supply chain?
Which of the following correctly describes the flow in a supply chain?
Which of the following correctly describes the flow in a supply chain?
What is the alternative term suggested to describe the concept of a supply chain?
What is the alternative term suggested to describe the concept of a supply chain?
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What is the primary process involved in Supply Chain Management (SCM)?
What is the primary process involved in Supply Chain Management (SCM)?
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Which of the following is NOT a key characteristic of SCM?
Which of the following is NOT a key characteristic of SCM?
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How can companies lower their landed cost?
How can companies lower their landed cost?
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Why must customer service levels in SCM be tailored to each customer?
Why must customer service levels in SCM be tailored to each customer?
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What is meant by Supply Chain Surplus?
What is meant by Supply Chain Surplus?
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What does 'value' represent in the Supply Chain equation?
What does 'value' represent in the Supply Chain equation?
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What is an example of customer surplus in a pricing scenario?
What is an example of customer surplus in a pricing scenario?
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Which of the following activities is NOT included in Supply Chain Management?
Which of the following activities is NOT included in Supply Chain Management?
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What is the primary measure of success for a supply chain?
What is the primary measure of success for a supply chain?
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What constitutes the primary source of revenue in a supply chain?
What constitutes the primary source of revenue in a supply chain?
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Which factor is NOT typically considered a cost in the supply chain?
Which factor is NOT typically considered a cost in the supply chain?
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What is supply chain profitability based on?
What is supply chain profitability based on?
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What aspect is crucial for effective supply chain management?
What aspect is crucial for effective supply chain management?
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What is an example of a company benefiting from advanced supply chain strategies?
What is an example of a company benefiting from advanced supply chain strategies?
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How should supply chain decisions be approached in a competitive environment?
How should supply chain decisions be approached in a competitive environment?
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Which of the following is a key consideration for sustaining supply chain competitiveness?
Which of the following is a key consideration for sustaining supply chain competitiveness?
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What is essential for achieving global scope in a supply chain?
What is essential for achieving global scope in a supply chain?
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Which step is primarily focused on resolving operational problems in IT systems?
Which step is primarily focused on resolving operational problems in IT systems?
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What is one characteristic of information that enhances supply chain visibility?
What is one characteristic of information that enhances supply chain visibility?
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In which phase is the facility location decision typically made?
In which phase is the facility location decision typically made?
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What is the goal of capturing and delivering needed information in supply chain management?
What is the goal of capturing and delivering needed information in supply chain management?
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During which phase does demand planning typically occur?
During which phase does demand planning typically occur?
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What is a key factor in making good business decisions in supply chains?
What is a key factor in making good business decisions in supply chains?
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Which of the following is NOT a characteristic of information needed for supply chains?
Which of the following is NOT a characteristic of information needed for supply chains?
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What defines a pull process in supply chain management?
What defines a pull process in supply chain management?
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Which of the following correctly distinguishes between push and pull processes?
Which of the following correctly distinguishes between push and pull processes?
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What is the purpose of the push/pull boundary in supply chain processes?
What is the purpose of the push/pull boundary in supply chain processes?
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What is included in the Customer Order Cycle?
What is included in the Customer Order Cycle?
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Which of the following is NOT one of the three macro processes in supply chain management?
Which of the following is NOT one of the three macro processes in supply chain management?
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Which cycle occurs after the Customer Order Cycle?
Which cycle occurs after the Customer Order Cycle?
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Why is integration among the three macro processes crucial for supply chain management?
Why is integration among the three macro processes crucial for supply chain management?
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In the Cycle View of Supply Chains, which stage is involved in the Manufacturing Cycle?
In the Cycle View of Supply Chains, which stage is involved in the Manufacturing Cycle?
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Which sub-process is NOT part of Customer Relationship Management (CRM)?
Which sub-process is NOT part of Customer Relationship Management (CRM)?
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What is the main focus of the Replenishment Cycle?
What is the main focus of the Replenishment Cycle?
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What is the main focus of Supplier Relationship Management (SRM)?
What is the main focus of Supplier Relationship Management (SRM)?
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Which of the following processes is NOT part of the Customer Order Cycle?
Which of the following processes is NOT part of the Customer Order Cycle?
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Which of the following statements about push processes is true?
Which of the following statements about push processes is true?
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What best describes the purpose of each cycle in the Cycle View of Supply Chains?
What best describes the purpose of each cycle in the Cycle View of Supply Chains?
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Which option describes the processes included in the Procurement Cycle?
Which option describes the processes included in the Procurement Cycle?
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What initiates the Replenishment Cycle for a retailer?
What initiates the Replenishment Cycle for a retailer?
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Study Notes
Supply Chain Management
- Supply chain management (SCM) is the process of optimizing the delivery of goods, services, and information from supplier to customer, balancing supply and demand.
- The objective is to maximize overall value generated, calculated as Customer Value - Supply Chain Cost.
- SCM encompasses producing and delivering a final product (or service) from the supplier's supplier through to the customer's customer, including: suppliers, manufacturers, distributors, retailers, and customers.
- Information, funds, and products flow in both directions.
- Flow of goods, cash, and information are key aspects.
- Supply chain stages include but are not limited to: customers, retailers, wholesalers/distributors, manufacturers, component/raw material suppliers.
- Not all stages are present in all supply chains.
Learning Objectives
- Explain the term 'supply chain management' and its objective.
- Identify the decision phases in SCM.
- Identify the five stages of the supply chain.
- Explain the interactions of the four process cycles of supply chains.
Key Characteristics of SCM
- Inventory
- Visibility
- Pull systems
- Companies must realize their strategies may affect landed cost
- Coordination of supply chain activities lowers landed cost.
- Real-time two way information flows
- Customer service levels must be tailored to each customer.
- Not all customers require the same type of service.
- Supply chain relationships
- Collaborative planning
- Sharing risks and rewards
Decision Phases in a Supply Chain
- Supply chain strategy/design: How to structure the supply chain over the next several years.
- Supply chain planning: Decisions over the next quarter or year.
- Supply chain operation: Daily or weekly operational decisions.
Supply Chain Strategy
- Supply chain strategy needs to be linked to a company's business strategy and integrated with product creation and marketing strategies.
- Key elements: New Product Strategy, Marketing Strategy, Marketing/Sales, Operations, and Distribution, Service, Finance, Accounting, Information Technology and Human Resources
Supply Chain Strategy or Design Decisions
- Configuration of the supply chain
- Allocation of resources
- Processes for each stage.
- Outsourcing supply chain functions.
- Location and capacity of facilities.
- Product location/storage.
- Transportation modes.
- Information systems.
- Design must support strategic objectives.
- Long-term, expensive decisions, must consider market uncertainty.
Supply Chain Planning
- Definition of policies to govern short-term operations.
- Supply configuration from the strategic phase.
- Goal is to maximize supply chain surplus given constraints.
- Starts with a forecast of demand in the coming year.
- Decisions involve market selection, inventory buildup, subcontracting, inventory policies, market promotions timing/size, demand uncertainty, exchange rates, and competition.
Supply Chain Operation
- Weekly or daily time horizon for decisions.
- Decisions regarding individual customer orders.
- Supply chain configuration and planning policies are defined.
- Goal is to handle incoming customer orders as effectively as possible.
- Allocation of orders, order due dates, pick lists, warehouse allocation, shipment assignment, delivery schedules, and replenishment orders.
- Much less uncertainty (short time horizon).
Barriers to Supply Chain Management
- Regulatory and political considerations.
- Lack of top management commitment.
- Reluctance to share, or use, relevant data.
- Incompatible information systems.
- Incompatible corporate cultures.
Process Views of a Supply Chain
- Cycle View: Supply chain processes are divided into a series of cycles, each performed at the interface between two successive stages of the supply chain (e.g., customer order cycle, replenishment cycle, manufacturing cycle, procurement cycle).
- Push/Pull View: Processes are categorized as pull (in response to a customer order) or push (initiated in anticipation of a customer order).
Key Learning Points Summary
- Discuss the goal of a supply chain and its impact on firm success
- Identify the three key supply chain decision phases and their significance
- Describe the cycle and push/pull views of a supply chain
- Classify the supply chain macro processes in a firm
Supply Chain Macro Processes
- Customer Relationship Management (CRM): Processes at the interface between the firm and its customers.
- Internal Supply Chain Management (ISCM): Internal processes within the firm.
- Supplier Relationship Management (SRM): Processes at the interface between the firm and its suppliers.
Use of Information in a Supply Chain
- Decision making: Strategic (location decisions), Operational (product production during today's run), Inventory (demand patterns, ordering costs), Transportation (costs and customer locations), Facility (location, capacity, schedules).
Characteristics of Information
- Accurate and up-to-date.
- Accessible at any time.
- The right kind for the right person.
- Provides supply chain visibility.
Steps in Using Information in IT Systems to improve Operational Performance
- Identify operational problems.
- Gain awareness and collect information.
- Analyze the information.
- Deliver needed information.
- Make decisions.
- Act on the decisions.
IT: The Information Enabler at 3 Different Phases
- Strategic phase (analysis, facility location).
- Tactical phase (demand planning, supply planning).
- Operational phase (daily production, procurement, field servicing).
3 Stages of System Development
- Operational requirements (4 supply chain cycles).
- Software design (3 major processes).
- Actual software produced.
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Description
This quiz explores the fundamental concepts of supply chain management (SCM), including its definition, objectives, and key stages. Learners will delve into the various decision phases in SCM and understand how value is generated through effective management of supply and demand. Test your knowledge on the flow of goods, information, and funds within a supply chain.
