Further to supply chain Flashcards
(27 cards)
What is the Value Chain?
A set of activities connecting a company’s supply side with its demand side, categorizing activities into primary and support activities.
Introduced by Michael Porter in 1985.
List the primary activities of the Value Chain.
- Inbound Logistics
- Operations
- Outbound Logistics
- Marketing & Sales
- Service
List the support activities of the Value Chain.
- Firm Infrastructure
- HR Management
- Technology Development
- Procurement
What factors vary supply chain strategies?
- Product type (functional vs. innovative)
- Bill of Materials (BOM) complexity
- Supplier scale
- Sales channels
What is the customer value proposition in supply chains?
Supply chains must be designed to deliver the specific value expected by customers, such as speed, cost, or customization.
What are the stages of technology in the supply chain?
- Digitization
- Digitalization
- Digital Transformation
What is the Bullwhip Effect?
Demand distortion that moves upstream from retailers to manufacturers.
List the causes of the Bullwhip Effect.
- Demand spikes
- Long lead times
- Poor visibility
What solutions can help reduce the Bullwhip Effect?
- Transparency
- AI tools
- Collaboration
- Reduced lead times
Differentiate between purchasing and procurement.
- Purchasing: Transactional focus
- Procurement: Strategic role
What are the aims of procurement?
- Flow continuity
- Competitive pricing
- Integration
What are the criteria for supplier selection?
- Price
- Quality
- Flexibility
- Reputation
What are the types of manufacturing?
- MTS (Make to Stock)
- MTO (Make to Order)
- ETO (Engineer to Order)
- ATO (Assemble to Order)
What does ABC Analysis categorize?
Inventory into three categories: A (High), B (Medium), C (Low).
Why hold inventory?
- Demand variability
- Bulk discounts
- Reduce delays
What is the role of warehousing in logistics?
- Storage
- Receiving
- Picking
- Packing
- Dispatching
What are the modes of transportation in logistics?
- Road
- Rail
- Sea
- Air
What are logistics trade-offs?
- Cost vs. Service
- Inventory vs. Stockouts
- Automation vs. Labor
- Centralized vs. Decentralized
What is the Lead Time Gap?
The delay between order and delivery.
What does the World Bank’s LPI measure?
- Customs
- Infrastructure
- Shipments
- Competence
- Tracking
- Timeliness
What does the Customs dimension of the LPI measure?
Efficiency of border clearance processes managed by customs and authorities, including speed and simplicity.
What does the Infrastructure dimension of the LPI include?
- Ports
- Roads
- Railways
- IT systems
- Logistics hubs
What is evaluated in the International Shipments dimension of the LPI?
Ease and affordability of arranging international shipping, including logistics service availability.
What does Logistics Competence measure?
Overall quality and capability of logistics service providers, including skill level and professionalism.
