Chapter 1 Flashcards
(18 cards)
What is a supply chain?
All parties involved, both direct and indirect, to fulfil a customer request.
Includes manufacturers, suppliers, transporters, warehouses, retailers, and the customer itself.
What are the primary purposes of a supply chain?
To satisfy customer needs and generate profit for the rest of the chain.
Name the three key flows in a supply chain.
- Information (from both sides)
- Product (from both sides)
- Funds (from customer to supplier)
How is supply chain surplus calculated?
Supply chain surplus = customer value - supply chain cost.
What does customer value refer to in the context of supply chain surplus?
The maximum amount the customer is willing to pay for a product.
What are examples of good supply chain management?
- Seven-Eleven Japan: good design, planning, and operation.
- Walmart: good organisation and investment in transportation and information infrastructure.
What is a common failure point in supply chain management?
Often seen in online businesses due to inability to design appropriate supply chains or manage information, product, and fund flow effectively.
What are the three decision phases in a supply chain?
- Supply Chain strategy or design
- Supply Chain planning
- Supply Chain operation
What is the time frame for supply chain planning?
3-12 months.
What are the four cycles in the cycle view of supply chain?
- Customer order
- Replenishment
- Manufacturing
- Procurement
List the sub-processes in the customer order cycle.
- Supplier stage markets product
- Buyer stage places order
- Supplier stage receives order
- Supplier stage supplies order
- Buyer stage receives supply
- Buyer returns reverse flows to a supplier or third party
What is SCOR?
A model that provides a description of applied chain processes and a set of metrics to measure process performance.
In the push/pull view, what initiates pull processes?
Customer orders.
What characterizes push processes?
They are speculative processes that respond to forecasted demand.
What does CRM stand for in supply chain macro processes?
Customer relationship management.
What is the focus of Internal Supply Chain Management (ISCM)?
All internal processes to the firm fulfilling CRM in a timely manner and at the lowest possible costs.
What is the role of Supplier Relationship Management (SRM)?
All processes at the interface between the firm and its suppliers.
True or False: All three macro processes (CRM, ISCM, SRM) are focused on serving the same customer.
True.
