Podcast
Questions and Answers
What is the primary goal of a supply chain?
What is the primary goal of a supply chain?
- To maximize the overall value created. (correct)
- To reduce the number of suppliers.
- To minimize transportation costs.
- To maximize customer satisfaction.
Which of the following best describes 'supply chain surplus'?
Which of the following best describes 'supply chain surplus'?
- The difference between customer value and supply chain cost. (correct)
- The amount of inventory held by all members of the supply chain.
- The difference between revenue and expenses within a single company in the supply chain.
- The total profit accumulated by all stages of the supply chain.
Why is it important to measure success by total supply chain profitability rather than individual stage profits?
Why is it important to measure success by total supply chain profitability rather than individual stage profits?
- Because individual stage profits are not easily measurable.
- Because total supply chain profitability is always higher than the sum of individual stage profits.
- To encourage stages to optimize for the entire chain, not just their own operations. (correct)
- To reduce competition between different stages of the supply chain.
Which of the following factors has the LEAST impact on the success of a supply chain?
Which of the following factors has the LEAST impact on the success of a supply chain?
What characterizes the supply chain strategy or design phase?
What characterizes the supply chain strategy or design phase?
Which decisions are typically addressed during the supply chain planning phase?
Which decisions are typically addressed during the supply chain planning phase?
What is the primary focus of the supply chain operation phase?
What is the primary focus of the supply chain operation phase?
Which of the following is NOT a typical decision made during the supply chain design phase?
Which of the following is NOT a typical decision made during the supply chain design phase?
Why is it important for supply chain design decisions to account for market uncertainty?
Why is it important for supply chain design decisions to account for market uncertainty?
What defines the cycle view of a supply chain?
What defines the cycle view of a supply chain?
What distinguishes the 'push' view of a supply chain from the 'pull' view?
What distinguishes the 'push' view of a supply chain from the 'pull' view?
Which of the following is a characteristic of a 'pull' process?
Which of the following is a characteristic of a 'pull' process?
What does the push/pull boundary represent in a supply chain?
What does the push/pull boundary represent in a supply chain?
How can the push/pull view be useful in supply chain design?
How can the push/pull view be useful in supply chain design?
What are the three main macro processes that supply chain processes can be classified into?
What are the three main macro processes that supply chain processes can be classified into?
Why is integration among CRM, ISCM, and SRM critical for effective and successful supply chain management?
Why is integration among CRM, ISCM, and SRM critical for effective and successful supply chain management?
Which of the following activities falls under Supplier Relationship Management (SRM)?
Which of the following activities falls under Supplier Relationship Management (SRM)?
Which activity is most likely categorized under Customer Relationship Management (CRM)?
Which activity is most likely categorized under Customer Relationship Management (CRM)?
What type of decisions are part of Internal Supply Chain Management (ISCM)?
What type of decisions are part of Internal Supply Chain Management (ISCM)?
In the context of a supply chain, what does 'value' primarily refer to?
In the context of a supply chain, what does 'value' primarily refer to?
A company is deciding whether to build a new distribution center or expand an existing one. Which supply chain decision phase does this fall under?
A company is deciding whether to build a new distribution center or expand an existing one. Which supply chain decision phase does this fall under?
A retailer notices that demand for umbrellas spikes whenever it rains. They decide to increase their umbrella orders when rain is forecast. Is this an example of a 'push' or 'pull' process?
A retailer notices that demand for umbrellas spikes whenever it rains. They decide to increase their umbrella orders when rain is forecast. Is this an example of a 'push' or 'pull' process?
If a company primarily operates using a 'push' strategy, what would be a likely characteristic of its supply chain?
If a company primarily operates using a 'push' strategy, what would be a likely characteristic of its supply chain?
A book publisher prints a large number of copies of a new novel before it is released to the public. Which supply chain view is best demonstrated by this scenario?
A book publisher prints a large number of copies of a new novel before it is released to the public. Which supply chain view is best demonstrated by this scenario?
A furniture company allows customers to customize the fabric and finish of their sofas online before placing an order. The manufacturing process begins only after the order is placed. Which supply chain view is best described by this scenario?
A furniture company allows customers to customize the fabric and finish of their sofas online before placing an order. The manufacturing process begins only after the order is placed. Which supply chain view is best described by this scenario?
A company decides to improve collaboration with its key suppliers to ensure a more reliable supply of raw materials. Which macro process is this activity associated with?
A company decides to improve collaboration with its key suppliers to ensure a more reliable supply of raw materials. Which macro process is this activity associated with?
A car manufacturer offers a 'build-to-order' option. This capability is most influenced by which of the following?
A car manufacturer offers a 'build-to-order' option. This capability is most influenced by which of the following?
What function does demand planning fulfill?
What function does demand planning fulfill?
If a company significantly improves its field service operations, which of the following does it fall under?
If a company significantly improves its field service operations, which of the following does it fall under?
A company focuses on improving customer service operations to maximize supply chain surplus. Which of the three macro processes would it prioritize?
A company focuses on improving customer service operations to maximize supply chain surplus. Which of the three macro processes would it prioritize?
What is the most appropriate definition of supply chain?
What is the most appropriate definition of supply chain?
Which of the following entities are always part of a supply chain?
Which of the following entities are always part of a supply chain?
Which of these functions is generally part of supply chain management?
Which of these functions is generally part of supply chain management?
What are the typical stages of a supply chain?
What are the typical stages of a supply chain?
In a supply chain, what flows occur?
In a supply chain, what flows occur?
Flashcards
What is a Supply Chain?
What is a Supply Chain?
All stages involved in fulfilling a customer request, including manufacturers, suppliers, transporters, warehouses, retailers, and customers.
Supply Chain Surplus
Supply Chain Surplus
Customer value minus supply chain cost.
Supply chain strategy/design
Supply chain strategy/design
How to structure the supply chain over the next several years
Supply chain planning
Supply chain planning
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Supply chain operation
Supply chain operation
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Cycle View
Cycle View
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Push/Pull View
Push/Pull View
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Pull Processes
Pull Processes
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Push Processes
Push Processes
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CRM
CRM
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ISCM
ISCM
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SRM
SRM
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Study Notes
Understanding the Supply Chain
- A supply chain includes all stages directly or indirectly involved in fulfilling a customer request.
- This encompasses manufacturers, suppliers, transporters, warehouses, retailers, and customers.
- Each company within the supply chain includes all functions involved in fulfilling customer requests, such as product development, marketing, operations, distribution, finance, and customer service.
- Customers are an integral part of the supply chain.
- Supply chain also includes the movement of products, information, and funds between stages.
- The term "supply network" or "supply web" might more accurately describe the structure.
- Typical supply chain stages include customers, retailers, distributors, manufacturers, and suppliers.
- It is important to note that not all stages are present in every chain, for example, Dell does not use retailers or distributors .
- The objective of a supply chain is to maximize the overall value created.
- Supply Chain Surplus = Customer Value – Supply Chain Cost.
- An example of this is a customer purchases a wireless router from Best Buy for $60, this is the revenue.
- Supply chain incurs costs, like information, storage, transportation, components, and assembly.
- The difference between the revenue is the supply chain profit.
- Customer is the only source of revenue.
- Cost includes flows of information, products, and funds between chain stages.
- Effective supply chain management maximizes total supply chain surplus by managing flows between stages.
Importance of Supply Chain Decisions
- Walmart had $1B in sales in 1980, which increased to $408B in 2010
- 7-Eleven Japan went from ï¿¥1B in sales in 1974 to ï¿¥3T in 2009
- Webvan folded in two years
- Borders dropped from $4B in sales 2004 to $2.8B in 2009
- Dell created new strategies after $56B in sales in 2006
Decision Phases of a Supply Chain
- Strategy or Design phase determines how the supply chain will structured over the next few years.
- Planning involves decisions covering the next quarter or year.
- Operation involves daily or weekly decisions.
- Supply Chain Strategy or Design make Key decisions include facility locations, capacities, products made/stored, transportation modes, and information systems.
- Supply chain design must support strategic objectives.
- Design decisions are long-term, expensive to reverse, and must consider market uncertainty.
- Supply Chain Planning defines the policies, uses the supply configuration from previous phase.
- Sets a forecast of demand for the upcoming year.
- Planning includes which markets will be supplied from which locations, inventory buildup, subcontracting, and promotions.
- Planning considers demand uncertainty, exchange rates, and competition.
- Supply Chain Operation uses a horizon of weekly or daily basis.
- Supply chain configuration is fixed, operating policies are determined, and operating policies are implemented.
- Includes allocating orders to inventory/production, setting order due dates, generating warehouse pick lists, setting delivery schedules, and placing replenishment orders.
Process Views of a Supply Chain
- Cycle View: Processes are divided into a series of cycles performed at interfaces between supply chain stages.
- Push/Pull View: Processes divided into categories based on their execution timing relative to customer demand.
- Pull: Execution is initiated in response to a customer order (reactive).
- Push: Execution is initiated in anticipation of customer orders (speculative).
- The push/pull boundary separates push and pull processes.
Supply Chain Macro Processes
- Processes can be classified into Customer Relationship Management (CRM), Internal Supply Chain Management (ISCM), and Supplier Relationship Management (SRM).
- Integration among these processes is critical for effective supply chain management.
- SRM includes source, negotiate, buy, design collabation, and supply collaboration
- ISCM includes strategic planning, demand planning, supply planning, fulfillment, and field service
- CRM includes market, price, sell, call center, and order management
Examples of effective supply chains
- Gateway and Apple
- Zara
- W.W. Grainger and McMaster-Carr
- Toyota
- Amazon
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