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Supply Chain Management (Exam 1 Chapters 1-4) 2024 QUESTIONS & ANSWERSt
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10/5/24, 6:06 PMSupply Chain Management (Exam 1 Chapters 1-4)
Jeremiah
Terms in this set (100)
is the design and management of flows of products, information, and funds
Supply Chain Management (SCM)
throughout the supply chain.
is the network of all entities involved in producing and delivering a finished product
to the final customer.
Supply Chain
This includes sourcing raw materials and parts; manufacturing, producing, and
assembling the products; storing goods in warehouses; order entry and tracking;
distribution; and delivery to the final customer.
-Suppliers
-Producers
-Wholesalers/Distributors
A typical supply chain may involve many -Retailers
different trading partners, called stages. -Customers
These stages may be:
>Each stage may not be present in a SC
> The number of stages in a SC and its design will depend on the customer's needs,
the roles of stages involved, and the value each stage provides.
-SC are under increasing financial pressure, and stages that do not add value to the
Supply Chain is often called "Value SC are quickly bypassed or eliminated.
Network" or "Value Chain"
-"Value chain" was introduced by a Harvard professor, Michael Porter in the 1980's.
1. Coordination - coordinate the movement of goods, services, and funds through
the SC
SCM Activities 2. Information Sharing - share forecasts, point-of-sale data, planned promotional
campaigns, and inventory levels
3. Collaboration - jointly plan, operate, and execute business decisions as one entity
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, 10/5/24, 6:06 PM
1. Flow of Products - from the beginning to the final customer. Goods also flow back
through the chain, called "reverse logistics"
2. Flow of Information - simplifies SC utilize data from point-of-sale back to
Managing Flows through the SC (Products, suppliers. Real time info reduces uncertainty and inventory levels making it more
Information, and Funds) timely and accurate.
3. Flow of Funds - funds are transferred in both directions along the SC. "SC
compression" is a shorter order cycle time which means the customers will receive
their orders faster.
- Fluctuation and distortion of information increases as it moves up the SC, from
retailers, to manufacturers, to suppliers.
The Bullwhip Effect
> each stage of the chain carries progressively more inventory
> the longer the SC, the greater the opportunity for the BW effect
> sharing point-of-sale info with all members of the SC can combat the BW effect
The final customer is the driving force of the SC
Customer Focus
- products are "pulled" through the SC
- focus more on the interaction between the customer and provider
- often rely on customers as the supplier of inputs
The Service SC - tend to be shorter than manufacturing SC
- are often more like hubs than chains
- do not have inventory as a buffer
SCM spans and integrates functions within and between enterprises of the SC
Boundary-Spanning nature of SCM
through: INTRA-Organizational Integration and CROSS-Enterprise Integration
1. Marketing - links the organization to its customers
2. Operations - organizes the transformation of raw materials into finished products
and services
3. Sourcing - links the organization to its suppliers and ensuring an efficient supply of
materials
INTRA-Organizational Integration
4. Logistics - is responsible for moving and positioning inventory throughout the SC
> To support SCM, each function must also have a systems viewpoint. This type of
effort requires company-wide integration that is different than the traditional "silo"
mentality, where each organizational function operates independently.
> Creating systems thinking can be a big challenge for many companies
- Various SC organizations functioning as a single entity to satisfy the final customer
by engaging in ongoing external efforts with suppliers, transportation carriers, and
distributors.
> The ultimate goal of a SC is to operate as a single entity
Keys:
CROSS-Enterprise Integration
1. IT as an enabler
2. Relationship Management
3. Collaborative Planning
4. Sharing risks and rewards
5. Win-win strategy
SCM: concerns the collaboration between SC partners in a strategic effort to
achieve superior competitiveness. (Strategic and Managerial Concept)
(SCM) vs Logistics
> SCM manages different aspects of the coordination process such as:
Information, Technology, Distribution, Products, Finances, and Relationships
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