Supply Chain Management Overview

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Questions and Answers

What are the three main flows in a supply chain?

Funds, inventory, procurement

Information, product, funds (correct)

Product, demand, logistics

Information, transportation, pricing

What type of decision is involved in the operational phase of supply chain management?

Long-term strategic decisions

Demand allocation strategies

Short-term order processing (correct)

Facility location planning

Which of the following best describes the Cycle View of supply chains?

Responsive design to customer demands

Processes categorized into distinct cycles (correct)

Focus on long-term planning for facility locations

Primarily concerned with financial metrics

What is the primary goal of aligning supply chain capabilities with product and market characteristics?

Achieve strategic fit Signup and view all the answers

In the context of supply chains, which of the following is NOT considered a key driver?

Customer service levels Signup and view all the answers

What does omni-channel retailing aim to achieve?

Integrate online and offline shopping experiences Signup and view all the answers

Which method of forecasting involves collecting subjective opinions like market surveys?

Qualitative forecasting Signup and view all the answers

What strategic decision is closely associated with the planning phase of supply chain management?

Inventory policies Signup and view all the answers

What is the primary focus of strategic decisions in supply chain management?

Overall design of the supply chain network Signup and view all the answers

Which metric is used to evaluate the accuracy of a forecast?

Mean Absolute Deviation (MAD) Signup and view all the answers

What technique is commonly used to optimize production plans?

Linear programming models Signup and view all the answers

Which of the following is an example of operational decision making?

Prioritizing fulfillment of online orders Signup and view all the answers

What is the purpose of aggregate planning in supply chain management?

To balance supply and demand in the medium term Signup and view all the answers

Which forecasting method would involve calculating a three-month moving average based on previous sales data?

Time-series analysis Signup and view all the answers

What is a common trade-off considered in aggregate planning?

Inventory levels versus workforce stability Signup and view all the answers

What type of decisions typically involve setting production schedules for the next quarter?

Planning decisions Signup and view all the answers

What is a key advantage of a just-in-time (JIT) inventory system?

It reduces storage costs. Signup and view all the answers

How does Zara's supply chain strategy differ from traditional apparel companies?

Zara focuses on rapid product introduction rather than cost. Signup and view all the answers

What is one trade-off companies must consider in supply chain management?

Balancing responsiveness against inventory costs. Signup and view all the answers

What visual tool is beneficial for clarifying the flow of materials and information within a supply chain?

Supply chain map. Signup and view all the answers

Which of the following is a significant challenge Amazon faces in maintaining high customer service levels?

Costs associated with warehousing and delivery. Signup and view all the answers

Which strategy would involve a higher risk of stockouts during demand surges?

Implementing a just-in-time (JIT) system. Signup and view all the answers

What is one reason a company might choose to decentralize its facilities?

To enhance responsiveness to regional markets. Signup and view all the answers

Utilizing Excel for modeling in supply chain management helps with which of the following?

Creating accurate forecasts and optimizing inventory. Signup and view all the answers

Study Notes

Supply Chain Management Study Notes

Definition of supply chain: All parties involved in fulfilling a customer request (manufacturers, suppliers, transporters, retailers, etc.)
Key flows: Information, product, funds
Supply chain surplus: Customer value minus supply chain costs
Decision phases:
- Strategic: Long-term decisions (facility locations)
- Planning: Mid-term decisions (inventory policies)
- Operational: Short-term decisions (order processing)
Views of supply chains:
- Cycle view: Divided into cycles (customer order, replenishment, manufacturing, procurement)
- Push/pull view: Processes categorized by anticipating or reacting to customer demand
Strategic Fit: Aligning supply chain capabilities with product and market characteristics, focusing on responsiveness vs. efficiency, and strategies for managing uncertainty
Key supply chain drivers and metrics: Facilities, inventory, transportation, information, sourcing, pricing, profitability, revenue, costs, cycle times, fill rates, inventory turnover
Network design factors: Facility location, capacity planning, demand allocation, and transportation strategies within regional configurations, site selection, plant locations
Globalization impacts: Risk management, decision trees, offshoring vs. onshoring, flexibility, supply chain adaptations for uncertain markets
Demand forecasting methods: Qualitative (e.g., market surveys), Quantitative (e.g., time-series analysis); Metrics like forecast accuracy, error measurements (MAD, MAPE)
Aggregate planning: Balancing supply and demand over the medium term, trade-offs: inventory levels, workforce, production rates
Excel models and hands-on learning: Calculating economic order quantity (EOQ).
Critical thinking and problem-solving: Evaluating decisions and strategies based on supply chain surplus
Connecting supply chain to broader business objectives: Impact on profitability, customer satisfaction, and competitive advantage.

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Description

Explore the foundational concepts of supply chain management, including key flows, decision phases, and strategic alignment. This quiz will test your understanding of how supply chains operate and the various metrics that drive performance. Perfect for students looking to deepen their knowledge in this critical business area.