Exam 1

Question 1

what is a supply chain

Answer 1

All stages involved, directly or indirectly, in fulfilling a customer’s request

Question 2

flows in a supply chain

Answer 2

information;product;funds

Question 3

SC stages

Answer 3

customer
retailer
distributor
manufacurer
supplier

Question 4

What does a SC do

Answer 4

the right product
price
store
quantity
customer
time= higher profits

Question 5

the objective of a SC

Answer 5

maximize overall VALUE created

supply chain surplus=customer value-SC cost

Question 6

SC profitability

Answer 6

the total profit shared across all stages of the supply chain

Question 7

the customer

Answer 7

an integral part of the SC

the only revenue source

Question 8

decision phases of a SC

Answer 8

SC strategy/design
SC planning
SC operation

Question 9

SC strategy/design

Answer 9

decisions about the structure of the supply chain and what processes each stage will perform
eg: locations; products to be made or stored at various locations; transportation; information system

SC design MUST support strategic objectives
SC design decisions are LONG-TERM and EXPENSIVE TO REVERSE

Question 10

SC planning

Answer 10

definition of a set of policies that govern SHORT-TERM operations
the goal is to maximize supply chain surplus given established constraints
starts with a forecast of demand for the coming year

Question 11

SC operation

Answer 11

time horizon is weekly or daily
decisions regard individual customer orders
SC configuration is fixed
the goal is to handle incoming customer orders as effectively as possible
much less uncertainty bc short time horizon

Question 12

cycle view of a SC

Answer 12

customer order cycle; replenishment cycle; manufacturing cycle; procurement cycle
each process is performed at the interface between two successive supply chain stages

Question 13

push/pull view of a SC

Answer 13

push systems: proactive, make to stock

pull systems: reactive, make to order

Question 14

mission

Answer 14

the reason for existence of an organization.

usually accompanied by a statement of objectives/goals

Question 15

strategy

Answer 15

a (long-term) plan for achieving organizational goals

Question 16

tactics

Answer 16

the actions taken to accomplish strategies

Question 17

operation

Answer 17

day to day decisions to support tactics

Question 18

competitive strategy

Answer 18

the set of customer needs a firm seeks to satisfy through its products and services.

Question 19

strategic fit

Answer 19

when competitive and supply chain strategies have aligned goals and are consistent with each other

Question 20

achieving strategic fit

Answer 20

1. the competitive strategy and all functional strategies must fit together to form a coordinated overall strategy
2. the different functions in a company must appropriately structure their processes and resources to be able to execute these strategies successfully
3. the design of the overall supply chain and the role of each stage must be aligned to support the supply chain strategy.

Question 21

achieving strategic fit

Answer 21

1. understanding the customer and supply chain uncertainty
2. understand the supply chain
3. achieving strategic fit

Question 22

understanding the customer and supply chain uncertainty

Answer 22

understand the customer WISHES, understand the CAPABILITIES of your SC, match the wishes with the capabilities.
challenge: how to meet extensive wishes with limited capabilities

Question 23

understanding the customer and supply chain uncertainty

Answer 23

products with uncertain demand are often less mature and have less direct competition. as a result, margins tend to be high.
forecasting is more accurate when demand had less uncertainty.
increased implied demand uncertainty leads to increased difficulty in matching supply with demand. for a given product, this dynamic can lead to either a stockout or an oversupply situation.
markdowns are high for products with greater implied demand uncertainty because oversupply often results.

Question 24

understanding the supply chain

Answer 24

SC responsiveness comes at a cost
SC efficiency is the inverse to the cost of making and delivering the product to the customer
the cost-responsiveness efficient frontier curve shows the lowest possible cost for a given level of responsiveness

Question 25

achieving strategic fit

Answer 25

ensure the degree of supply chain responsiveness is consistent with the implied uncertainty. assign roles to different stages of the supply chain that ensure the appropriate level of responsiveness. ensure all functions maintain consistent strategies that support the competitive strategy. zone of strategic fit 一条斜块阴影 certain demand--efficient SC uncertain demand--responsive SC

Question 26

changes over the product life cycle

Answer 26

demand characteristics of a product and the needs of a customer segment change as a product goes through its life cycle SC strategy must evolve through the life cycle beginning stages: demand is very uncertain, supply may be unpredictable. margins are often high, time is crucial to gaining sales. product availability is crucial to capturing the market. cost is often a secondary consideration in customer choice. later stage: demand has become more certain, demand is predictable. margins are lower as a result of increased competitive pressure. price becomes a significant factor in customer choice. as the product goes through the life cycle, the supply chain changes from one emphasizing responsiveness to one emphasizing efficiency

Question 27

competitive changes over time

Answer 27

competitive pressure change over time; more competitor may result in an increased emphasis on variety at a reasonable price; the internet makes it easier to offer a wide variety of products; the supply chain must change to meet these changing competitive conditions.

Question 28

challenges

Answer 28

increasing product variety and shrinking life cycles; globalization and increasing uncertainty; fragmentation of supply chain ownership; changing technology and business environment; the environment and sustainability;

Question 29

drivers of SC performance

Answer 29

``` facilities inventory transportation information sourcing pricing ```

Question 30

facilities role in the competitive strategy

Answer 30

tradeoffs between facility, inventory and transportation costs; economies of scale; larger number of smaller facilities

Question 31

components of facilities decisions

Answer 31

``` role location capacity manufacturing methodology warehousing methodology ```

Question 32

inventory role in the SC

Answer 32

``` exists because of a mismatch between supply and demand; a source of cost an influence on responsiveness impact material flow time impacts throughput ```

Question 33

components of inventory decisions

Answer 33

cycle inventory safety inventory seasonal inventory level of product availability

Question 34

transportation role in the SC

Answer 34

moves the product between stages in the supply chain faster transportation allows greater responsiveness but lower efficiency affects inventory and facilities

Question 35

components of transportation

Answer 35

mode of transportation( very in cost, speed, size of shipment and flexibility) route and network selection in-house or oursource

Question 36

information role in the SC

Answer 36

the connection between the various stages of the supply chain crucial to the daily operation of each stage in a supply chain

Question 37

components of information decisions

Answer 37

``` push vs. pull coordination and information sharing forecasting and aggregate planning technology selection sales and operations planning ```

Question 38

sourcing role in the SC

Answer 38

set of business processes supplier selection, contract negotiation crucial:affects efficiency and responsiveness

Question 39

components of sourcing decisions

Answer 39

in-house vs. outsource decisions supplier evaluation and selection procurement process

Question 40

pricing role in the supply chain

Answer 40

amount to charge customers in a supply chain | used to match demand and supply

Question 41

components of pricing decisions

Answer 41

pricing and economies of scale everyday low pricing vs. high-low pricing fixed price vs. menu pricing

Question 42

obstacles

Answer 42

size globalization dealing with multiple owners change

Question 43

distribution

Answer 43

steps taken to move and store a product from the supplier to customer in a supply chain choice of distribution network can achieve supply chain objective from low cost to high responsiveness

Question 44

6 distribution networks

Answer 44

1. direct shipping from manufactures 2. direct shipping from manufactures with in-transit merge 3. distributor storage with carrier delivery 4. distributor storage with last mile delivery 5. manufacturer/distributor storage with customer pick up 6. retail storage with customer pick up

Question 45

cost factor

Answer 45

inventory transportation facilities and handling information

Question 46

service factor

Answer 46

``` responsive time product variety product availability customer experience time to market order visibility returnability ```