Intro. Supply Chain Models

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Questions and Answers

What is the primary objective of supply chain management according to the APICS Dictionary?

Ensuring global logistics and synchronizing supply with demand

Optimizing raw material procurement and physical distribution

Maximizing profit and minimizing costs

Creating net value and building a competitive infrastructure (correct)

How does the APICS Dictionary define a supply chain?

A local network for delivering products and services through physical distribution only

A network of entities without any engineered flow of information

A global network for delivering products and services through information flow only

A global network for delivering products and services through an engineered flow of information, physical distribution, and cash (correct)

What characterizes the supply chains that interest the course according to the text?

They are exclusively local in scope

They are decidedly global in scope (correct)

They are primarily focused on physical distribution

They are limited to specific entities within the chain

What is essential for companies to guarantee in their supply chains according to the text?

A steady flow of supply at an acceptable cost Signup and view all the answers

According to the APICS Dictionary, what does supply chain management involve?

Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value Signup and view all the answers

What does the engineered flow within a supply chain comprise according to the APICS Dictionary?

An engineered flow of information, physical distribution, and cash Signup and view all the answers

What can companies improve by employing the right supply chain structure according to the text?

Operating efficiency Signup and view all the answers

What is the favored approach to managing complex supply chains according to the text?

Lateral integration Signup and view all the answers

What is the primary reason for relying on a lateral supply chain according to the text?

To achieve economies of scale and scope Signup and view all the answers

What is keiretsu according to the APICS Dictionary, 16th edition?

A cooperative relationship among companies in Japan Signup and view all the answers

What do many Japanese companies favor as an intermediate form of integration according to the text?

'Keiretsu' Signup and view all the answers

Why do many clothing companies in Europe work through Dutch logistics centers according to the text?

To take advantage of Holland’s central location and specialized capabilities Signup and view all the answers

What has replaced vertical integration as the favored approach to managing complex supply chains according to the text?

'Lateral integration' Signup and view all the answers

What are the four basic flows that connect the supply chain entities?

Information, product, cash, and reverse product flows Signup and view all the answers

What does the cash-to-cash cycle time measure in a supply chain?

The efficiency of the flow of funds Signup and view all the answers

What is the main focus of supply chain management according to the text?

Creating net value Signup and view all the answers

What is the direction of the flow of money in a supply chain according to the text?

Upstream from customer to producer and supplier Signup and view all the answers

What does improving the flow of funds within a supply chain lead to according to the text?

Better customer-supplier relationships and more prompt payments Signup and view all the answers

What does the cash-to-cash cycle time measure in a supply chain according to the text?

The time taken for a company to convert investments into cash receipts Signup and view all the answers

What characterizes global supply chains according to the text?

They can be more complex than traditional supply chains involving multiple entities across different countries. Signup and view all the answers

What does a supply chain involve?

Extraction of materials, transformation into a product, and selling to end customers Signup and view all the answers

What is a key challenge in managing global supply chains?

Balancing competing interests and complex group dynamics Signup and view all the answers

What does vertical integration provide?

Control and addressing supply risks Signup and view all the answers

What is the role of Gartner in the context of supply chains?

Conducting an annual survey to identify top 25 supply chain leaders Signup and view all the answers

Why do companies generally pursue lateral integration?

To reduce risk by specializing in core competencies Signup and view all the answers

What are the various flows involved in supply chains?

Material, funds, information in both directions Signup and view all the answers

What is one reason corporations turn to outsourcing in their supply chains?

To address elements of the supply chain judged least effective Signup and view all the answers

Study Notes

Supply Chain Management and Integration

Supply chains are typically organized by a strong company, such as a manufacturer or retailer, which manages value-creating activities for stakeholders.
Balancing competing interests is crucial in managing supply chains, especially in global supply chains with complex group dynamics.
A supply chain involves everyone and everything required to extract materials, transform them into a product, and sell the product to a user.
Supply chains include entities like raw material extractors, service and component suppliers, manufacturers, distributors, and end customers.
Supply chain structures vary based on demand history, business focus, connectivity needs, and technology.
Supply chains involve various processes like marketing data gathering, distribution, payment, and order fulfillment, cutting across entities.
They also encompass various flows, including materials, funds, and information, in both directions.
Gartner conducts an annual survey to identify the top 25 supply chain leaders, reflecting the importance of supply chain expertise in today's business world.
Companies generally pursue vertical integration (bringing the supply chain inside one organization) or lateral integration (outsourcing aspects of the supply chain).
Vertical integration provides control and can address supply risks, illustrated by examples such as McDonald's and Ikea.
Lateral integration allows organizations to specialize in core competencies and rely on other specialists for the rest of the supply chain, reducing risk.
It is challenging to be fully integrated end to end, leading many corporations to turn to outsourcing for the elements of the supply chain in which they judge themselves to be least effective.

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Test your knowledge on the organization and value creation in supply chains, as defined by the APICS Dictionary, 16th edition. Explore how stakeholders are impacted and the generation of value for consumers and investors.