Articles

Question 1

How is big data revolutionary?

Answer 1

By exploiting observed patterns etc. To then idenfity a best decision. It can replace the forecast and optimization/sensitivity traditional way. It will lead to better outcomes because it utilizes all of the data available.

Question 2

What is the the ultimate use of Big Data?

Answer 2

Using it as prescriptive analytics. . Prescriptive analytics is answering the “What should we do?” & “How can we make it happen?” questions.

Question 3

factors for sucessful managment:

Answer 3

▪ The strategy needs to be tailored to meet specific needs of the customers.
▪ A product with a stable demand and a reliable source of supply should not be managed in the same way as one with a highly unpredictable demand and an unreliable source of supply.
▪ The Internet can be a powerful tool for supporting or enabling supply chain strategies for products with different demand and supply uncertainties.

Question 4

Functional products are…

Answer 4

ones that have long product life cycles and therefore stable demand

Question 5

innovative products are …

Answer 5

products that have short life cycles with high innovation and fashion contents.

Question 6

Name four demand characterisitcs of functional and innovative products.

Answer 6

Functional - low demand uncertaintes, predictable demand, low inventory cost, Higher volume per SKU

Innovative - High demand uncertaintes, difficult to forecast, high product variety, low volumes per SKU

Question 7

Name four supply characterisitcs of stable and evolving supply chains.

Answer 7

Stable - less breakdowns, higher yields, less process changes, flexible

Evolving - vunerable to breakdowns, potential quality problems, potential capacity changes, inflexible

Question 8

“stable” supply process is …

Answer 8

one where the manufacturing process and the underlying technology are mature and the supply base is well established.

Question 9

An “evolving” supply process is…

Answer 9

where the manufacturing process and the underlying technology are still under early development and are rapidly changing.

Question 10

Explain the matching matrix

Answer 10

4 quadrants, with functional and innaovate products left too right and efficient and reponsive supply chain up to down. Functional product and a efficient supply chain match. Innovative producst match with an responsive supply chain.

Question 11

What is the physically efficient process’s primary purpose?

Answer 11

To supply predictabel demand efficiently at the lowest possible cost.

Question 12

What is the primary purpose of a marekt responsive process?

Answer 12

Respond quickly to unpredictable deman in order to minimize stockouts, forced markdowns, and obsolete inventory.

Question 13

What is the bullwhip effect?

Answer 13

Small changes in the upstream (customer), creates large changes down stream (supply).

Question 14

four major causes of the bullwhip effect:

Answer 14

1. Demand forecast updating
2. Order batching
3. Price fluctuation
4. Rationing and shortage gaming

Question 15

What is a Triple-A Supply Chain

Answer 15

Triple A stands for agile, adaptable, and aligned. A supply chain should strive to be all three.

Question 16

What does it mean for a supply chain to be agile, adaptable, and aligned?

Answer 16

Agile: They respond quickly to sudden changes in supply or demand.
Adaptable: They evolve over time as the market changes
Aligned: They align the interests of all participating firms in the supply chain with their own.