40 Questions
In a supply chain, which direction do funds flow?
Both upstream and downstream
What is the typical sequence of stages for product flow in a supply chain?
Supplier → Manufacturer → Distributor
What are the two parts that make up supply chain surplus?
Customer value and supply chain cost
What is the source of revenue for any supply chain?
The customer
What is the primary factor that drove Dell's initial success?
Assembly→Customer supply chain linkage
What is customer value in a supply chain?
The sum of the supply chain surplus and supply chain cost
What is the primary focus of the supply chain operation phase?
Supply chain strategy
During which phase of supply chain management would a company decide whether to outsource or perform a function in-house?
Design phase
What is the objective of every supply chain?
To maximize the overall value generated
What is a key characteristic of Walmart's supply chain?
Frequent but inexpensive replenishment at the stores
What type of decision would fall under the supply chain strategy category?
Facility capacity planning
How many sources of revenue are there in a supply chain?
Only one source, the customer
Which of the following categories of decisions has the most significant impact on supply chain profitability?
Design, planning, and operation categories
What is the typical time horizon of the operation phase in supply chain management?
Weekly or daily
What is the core concept of the cycle view of a supply chain?
Supply chain processes are divided into a series of activities performed at the interface between successive stages
What is the primary difference between Dell's supply chain model and traditional supply chain models?
Dell's model is focused on assembly-to-customer
Where does the customer receive the product and take ownership?
customer/retailer interface
Where does the replenishment cycle occur?
retailer/distributor interface
What is one of the processes included in the replenishment cycle?
retail trigger
Where does the manufacturing cycle occur?
distributor/manufacturer interface
What is one of the processes involved in the manufacturing cycle?
production scheduling
What is the production scheduling process in the manufacturing cycle similar to?
order entry process in the replenishment cycle
Where does the procurement cycle occur?
manufacturer/supplier interface
Which relationship is similar to the manufacturer and supplier during the procurement cycle?
retailer and distributor
What is the primary purpose of customer order entry?
To ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
What is the definition of customer order fulfillment?
The process of preparing and sending products to the customer.
What is the primary objective of customer order fulfillment?
To get the correct orders to customers by the promised due date at the lowest possible cost.
What is the definition of customer order receiving?
The process of the customer receiving the product and taking ownership.
What is the primary purpose of customer order entry in relation to supply chain processes?
To ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
What is the primary objective of customer order fulfillment in relation to cost?
To get the correct orders to customers by the promised due date at the lowest possible cost.
What is the point in time when the customer has access to choices and makes a decision regarding a purchase?
Customer order decision-making.
What is the process of the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer?
Customer order entry.
What is one way to improve the supply chain internally within a stage?
Add a storage reservoir before Conoco Philips
Why is it important to build local supplies of compressed or liquefied natural gas?
To ensure a reservoir to be tapped in case of need
What is one way to improve the supply chain externally outside a stage?
Obtain new sources of natural gas supplies
What is Singapore planning to do to reduce its dependence on natural gas?
Importing renewable energy from Laos via Thailand and Malaysia
What is being built in Australia to power Singapore?
A massive solar power link
What is the main source of energy in Singapore currently?
Liquefied natural gas
What is the purpose of the Jurong Rock Caverns?
To store compressed natural gas
What is the estimated power output of a wind turbine at Pulau Semakau?
Enough to power 35 flats
Study Notes
Supply Chain Fundamentals
- Funds flow both upstream and downstream in a supply chain, while product flows only downstream.
- Typical sequence of stages for product flow in a supply chain is Supplier → Manufacturer → Distributor.
- Supply chain surplus involves customer value and supply chain cost.
- The source of revenue for any supply chain is generated by the customer.
- Customer value is the sum of the supply chain surplus and supply chain cost.
- The objective of every supply chain is to maximize the overall value generated.
Supply Chain Management
- Walmart's supply chain features clusters of stores around distribution centers, facilitating rapid replenishment at the stores.
- Dell's initial success was largely driven by their Assembly→Customer supply chain linkage.
- The decision phases in a supply chain include supply chain operation.
- A company decides whether to outsource or perform a supply chain function in-house during the design phase.
- The supply chain strategy category includes decisions about the size of a warehouse.
Supply Chain Design
- The profitability of a supply chain is impacted primarily by the design, planning, and operation categories of decisions.
- The time horizon of the operation phase is typically weekly or daily.
- The cycle view of a supply chain holds that processes are divided into a series of activities performed at the interface between successive stages.
Customer Order Management
- The objective of customer order entry is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
- Customer order fulfillment refers to the process where product is prepared and sent to the customer.
- The objective of customer order fulfillment is to get the correct orders to customers by the promised due date at the lowest possible cost.
- Customer order receiving is the process where the customer receives the product and takes ownership.
Supply Chain Cycles
- The replenishment cycle occurs at the retailer/distributor interface.
- The processes included in the replenishment cycle include retail trigger.
- The manufacturing cycle occurs at the distributor/manufacturer interface.
- The processes involved in the manufacturing cycle include production scheduling.
- The procurement cycle occurs at the manufacturer/supplier interface.
Improving Supply Chains
- One way to improve the supply chain internally is to add storage reservoirs, such as the Jurong Rock Caverns, to store compressed/liquefied natural gas.
- One way to improve the supply chain externally is to obtain new sources of natural gas supplies, such as renewable energy sources like solar power or wind power.
Test your understanding of supply chain concepts, including product flow, funds flow, and supply chain surplus. Evaluate your knowledge of the typical stages involved in a supply chain.
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