1.1 Understanding Supply Chains

Question 1

Definition Supply Chain

Answer 1

• consists of all parties involved, directly or indirectly, in fulfilling a customer request.
• includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers, and even customers themselves.
• the scope includes the flows of products, funds and information.

Question 2

Fig. Supply Chain

Answer 2

Question 3

Supply-Driven Supply Chains

Answer 3

Maximizing the value created by observing the expected supply / availability of resources

Question 4

Demand-Driven Supply Chains

Answer 4

Maximizing the value created by observing the expected demand

Question 5

Supply Chain Strategy or Design

Answer 5

▪ Long-term decisions about a SC structure and configuration
▪ Long-term planning horizon (multiple years)
▪ Uncertainties must be taken into account (forecasts)
▪ Examples:
− Facility locations and capacities
− Product portfolio
− Define vertical range of manufacture and customer order decoupling point
− Selection of partners

Question 6

Supply Chain Planning

Answer 6

▪ Short/medium-term decisions about utilizing the given strategic resources
▪ Medium-term planning horizon (a quarter to a year)
▪ Mostly based on forecasts
▪ Examples:
− Global distribution planning
− Buildup of inventories
− Policies and contracts
− Subcontracting, backup locations

Question 7

Supply Chain Operation

Answer 7

▪ Short-term decisions based on the framework defined by SC planning
▪ Handle orders in best possible manner
▪ Short-term planning horizon (days-weeks)
▪ Customer-based planning
▪ Examples:
− Order selection
− Delivery schedules
− Replenishment orders
− Assigning means of transport