Solutions Supply Chain Logistics Management, 6th E Bowersox
All Chapters Solutions included
Cases Answers included
SCLM 6th Edition End of Chapter Questions and Answers
Chapter One: 21st Century Supply Chains
Study Questions
1. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific
regarding similarities and differences.
Traditional distribution channels typically had an order fulfillment time of 15-30 days. However, if something went
wrong, this time could increase dramatically. It was a common practice to maintain inventory at every stage of the
supply chain like retailers, wholesalers, and manufacturers. The market was characterized by scarcity to the primary
goal of traditional model was to ensure availability of products. However today customers want more options in
product offerings. Modern supply chain is geared towards meeting the changing consumer needs. Transportation
capacity and operational performance has become more reliable and economical. Logistical systems are capable of
capable of delivering products at exact times. So, customer orders can be fulfilled faster. With massive development
in information technology, the need to maintain inventory has reduced dramatically. The occurrence of failures,
characteristics of traditional supply chain, has been replaced by a commitment towards zero-defect of six sigma
performance. In essence a high level of performance is achieved at a lower total cost with commitment of fewer
financial resources than that in the past.
2. What specific role does logistics play in supply chain operations?
Logistics is the primary conduit of product and service flow within a supply chain arrangement. It is the work
required to move and to position inventory throughout a supply chain. It is a combination of order management,
inventory, transportation, warehousing, material handling and packaging as integrated throughout a facility
network. Logistics is essential for effective supply chain connectivity.
3. Describe and illustrate an integrated service provider. How does the concept of integrated service
provider differ from traditional service providers, such as for-hire transportation and warehousing?
Integrated Service Providers (ISP) also known as third-party logistics providers offer a range of logistics services
that includes all work necessary to service customers. With the regulatory changes in transportation the traditional
logistics services providers started offering warehousing and shared transportation services. The ISPs initiated the
radical shift from single function to multifunction outsourcing. Their services include order entry to product delivery
and in certain situations they also provide wide range of value-added services. For example, United Parcel Services
(UPS) stocks Nike shoes and warm-ups at its Louisville warehouse and processes orders hourly. All the related
communication and financial administration are handled by a UPS call center in San Antonio. Therefore, UPS handles
the basic logistics and value-added services for Nike.
In contrast the traditional service providers, such as for-hire transportation and warehousing specialize in specific
functions. For instance, the for-hire transportation industry consists of carriers who specialize in moving products
between geographic locations. The companies offering warehouse services are traditionally called public
warehouses and they provide storage supplemented by specialized services.
,4. Compare and contrast anticipatory and response-based business models. Why has responsiveness
become popular in supply chain collaborations?
Anticipatory and response-based business models are the two ways used by firms to fulfill customer requirements.
However, the fundamental difference in the two models is timing
The Anticipatory model has been the traditional business practice, which was mainly forecast driven. Since
information about purchasing behavior was not readily available, and the channel partners were loosely
collaborating, businesses were driven by forecasts. However, the forecasts used by the manufacturers, wholesales,
distributors, and retailers were often different resulting in excess inventory in the system. All the work was
performed in anticipation of future projections, so the likelihood of misgauging customer requirements was very
high. In addition, each firm in the chain duplicated the anticipatory process.
The Response-based model aims to reduce or eliminate forecast reliance by joint planning and rapid exchange of
information between supply chain partners. This model is possible because managers can now obtain and share
accurate sales information more quickly. Consequently, customers can be provided with their desired items faster.
This model requires fewer steps and therefore less cost to complete fulfillment compared to the anticipatory model.
A Response-based model is similar to a build to order model however the former has a faster response time and
allows higher degree of customization.
Responsiveness propelled by information technology development has become the cornerstone of today’s supply
chain collaboration. Higher responsiveness can not only increase the level of customer satisfaction but can also
reduce the overall cost of doing that.
5. Discuss five non-traditional supply chain applications and describe the similarities and differences
between traditional supply chain applications
Students can choose from numerous non-traditional supply chain applications as presented in Table 1.2. Similarities
could be the inclusion of similar supply chain activities, however differentiated for the very specific application. For
example, a construction supply chain still includes concepts such as procurement and logistics, however it is hyper
specialized to emphasize just in time delivery performance to keep construction operations moving and not dwell
product or cash, for undue periods of time. Each example will combine traditional supply chain elements with
modifications specific to the application and goal of the given supply chain.
6. Describe how one of the consumer disruptors and one of the technology disruptors will impact supply
chain design and strategy?
Students could choose the following disruptors: (1) “want it now” mentality (2) personalization (3) millennial
preferences (4) omni-channel shopping or (5) aging consumer needs. Technology disruptors include: (1)
autonomous vehicles and the internet of things (IOT), (2) artificial intelligence (3) Uberization (4) 3D printing (5)
big data (6) alternative fuels. Answers should focus on how these consumer preferences and technologies will impact
traditional supply chain strategies such as manufacturing, procurement, and logistics. In particular, answers should
focus on how the consumer preferences and technology will change the decision. For example, consumers with a
“want it now” mentality require a supply chain with inventory positioned closer to the end consumer and/or
expedited transportation capabilities and capacity.
,Challenge questions
1. What are the operating challenges related to a brick-and-mortar retail toy stores plan to establish 600
temporary or pop-up seasonal retail outlets? Be specific concerning the supply chain challenges
leading into, during, and after the Christmas selling season.
There are several challenges when a brick and mortar retailer establishes temporary retail outlets.
Staff: First, recruiting temporary staff and training the staff to meet the customer service requirements of the toy
store may turn into a significant challenge.
Space and location: As these stores are new, they should be located in the places which are easily approachable by
customers like malls. Getting space in these places, which are already crowded may turn into a significant challenge.
Inventory: Because of their temporary nature of these outlets, it might be difficult to actually forecast the demand
for each of these individual temporary retail outlets, resulting in either stock outs or excess inventories.
Logistics: One of the major challenges is the logistics. As these stores are new, the toy store will need to develop a
new distribution system temporarily, which is a substantial challenge. At the end of season, moving all the remaining
inventory back is also a big challenge.
2. Building on your knowledge of the industry, identify and discuss at least one more consumer or
industry disruptor that will impact supply chain management.
Student answers will vary and could include numerous concepts such as total basket home food delivery, multiple
delivery options including storage lockers, delivery to trunk, inside the front door delivery, etc. Remind students to
challenge what is “possible” today vs. what the near future might hold.
3. Discuss how reverse logistics can create value?
In highly competitive markets environments, which we see in many industries, customer service plays a significant
role. Reverse logistics plays a significant role in customer service as well as in improving customer perception. In
addition to the benefit it provides to customers, reverse logistics also helps company to objectively measure quality
of its products.
4. Building on your insight regarding non-traditional supply chain applications, discuss where else
supply chain principles could be applied.
Student answers will vary and could include concepts like Hospitality or the Restaurant industry, advancements in
the medical industry, or in the services industry.
, Chapter 2: Supply Chain Information Technology
Study Questions:
1. Discuss how supply chain information systems can provide a competitive advantage for the firm?
Answers will vary but should all focus on the concept of how supply chain information systems can not only assist
in the planning, execution, and tracking of activities, but also how sophisticated firms use systems to help facilitate
collaboration by sharing information across the supply chain and drive strategy through concepts like big data.
2. Compare and contrast supply chain transaction management, decision analysis, and strategic planning
systems
Transaction System: characterized by formal rules, produces, and standardized communications, a large volume of
transactions, and an operational, day-to-day focus. Major emphasis on system efficiency
Decision Analysis: focuses on software tools to assist mangers in identifying, evaluating, and comparing strategic
and tactical alternative to improve performance. Typical analyses include supply chain design, inventory
management, resource allocation, transportation routing, and customer segment profitability.
Strategic Planning: Organizes and synthesizes transaction data into a relationship database that assists in strategy
formation and evaluation. Focusing on information to evaluate and refine supply chain and logistics strategy.
Elements include desirability and scope of strategic alliances, development and refinement of supply chain
capabilities, and opportunities related to customer relationship management.
Reference Figure 2.2 for additional information
3. Describe the benefits provided by Blockchain technology
Blockchain is a communications technology that facilitates secure communication involving financial and supply
chain institutions. Blockchain is a distributed database that maintains digital contents regarding transactions or
events that make the records tamper-resistant. While many institutions such as suppliers, manufacturers,
distributors, retailers, and logistics service providers may access, inspect, or add to the data, they can’t change or
delete it. The original information is maintained in a permanent and public information trail, or chain of transactions.
Therefore, the benefit of Blockchain technology is the un-interrupted distributed ledger enabling all participants’
access to the same information without risk of tamper.
4. Discuss the role of TMS, WMS, and YMS in Supply chain Execution?
Transportation Management Systems (TMS), Warehouse Management Systems (WMS), and Yard Management
Systems (YMS) are all considered Logistics operations modules. As such they are critical technology elements in
supply chain execution. TMS systems offer functionality including: 1) building loads from multiple orders 2)
identifying possible carriers 3) maintaining database of shipments rates 4) determining shipment mode and route,
5) providing documentation to select product to ship and stage in the warehouse 6) Developing documentation for
shipment and (7) tracking the order while in transit and finally (8) transferring information to accounts receivables.
The WMS system functionality includes (1) shipment receipt (2) product storage and put away (3) product retrieval
from storage locations (4) product staging for shipment and (5) initiation of value-added activities such as packaging,
labeling, or other forms of customization. The YMS system functionality includes the management of trailer and or
rail cars in the firms outside storage area. It can also be used to schedule appointments.
