Module2.1

Question 1

What is strategic fit?

Answer 1

Strategic fit refers to the consistency between customer priorities in the competitive strategy and the capabilities specified by the supply chain strategy.

Question 2

How is strategic fit achieved?

Answer 2

1. Understand supply and demand uncertainty.
2. Understand the supply chain.
3. Align supply chain capabilities with customer needs.

Question 3

What are the components of a value chain?

Answer 3

• New product development
• Purchasing and supply
• Operations
• Distribution
• Marketing and sales

Question 4

What is implied demand uncertainty?

Answer 4

Implied demand uncertainty is the resulting uncertainty for the supply chain given the attributes customers desire and the portion of demand the supply chain must handle.

Question 5

Characteristics of functional vs. innovative products

Answer 5

• Functional products: Predictable demand, low margins, long life cycle.
• Innovative products: Unpredictable demand, high margins, short life cycle.

Question 6

What affects supply uncertainty?

Answer 6

• Frequent breakdowns
• Unpredictable yields
• Poor quality
• Limited supply capacity
• Inflexible production

Question 7

What is supply chain responsiveness?

Answer 7

The ability to:
- Respond to wide ranges of quantities.
- Meet short lead times.
- Handle variety and innovation.
- Deliver high service levels.

Question 8

Efficient vs. responsive supply chains

Answer 8

• Efficient: Minimise costs, low inventory, high utilisation.
• Responsive: High flexibility, buffer inventory, modular design.

Question 9

Impact of product life cycle on supply chain

Answer 9

• Early stage: Uncertain demand, high margins, focus on availability.
• Late stage: Predictable demand, lower margins, focus on cost.

Question 10

What challenges strategic fit over time?

Answer 10

• Increasing demand uncertainty.
• Fragmented supply chain ownership.
• Globalisation.
• Shorter product life cycles.