Ch. 8 The Synchronous Supply Chain Flashcards
What does it mean that businesses are ‘boundaryless’?
Functional barriers are being replaced by horizontal processes management.
The separation between vendors, distributors, customers and the firm is gradually lessening.
What is the key feature of the extended enterprise?
common information sharing
What is a virtual supply chain?
a series of relationships between partners based upon the value-added exchange of information
What’s the key to success in supply chain management?
The information system
What is the marketspace?
The world of e-commerce, the Internet, and virtual supply chains.
What are some uses for improved logistics information?
- stock management
- production scheduling
- customer service levels
- customer order status
- demand forecasting
What does it mean to convert supply chains into demand chains?
That a firm can respond to known demand instead of having to rely on forecasts.
What is the philosophy of a synchronous supply chain?
small shipments need to be made more frequently and to meet the precise time requirement of the customer.
What is the philosophy of a synchronous supply chain?
small shipments need to be made more frequently and to meet the precise time requirement of the customer.
What’s the basic principle of synchronization?
All elements in the chain act as one. There must be the highest level of planning discipline
What is cross-docking?
When POS data is automatically collected and accessed by suppliers who then assemble specific orders for replenishment
What is meant by ‘quick response’ logistics? Explain the basic idea behind it.
Combining information and logistics to provide the right product in the right place.
The basic idea is that to reap the advantages of time-based competition you need to develop systems that are responsive and fast.
What are the effects of QR logistics?
- reduced lead times
- less inventory
What is the main barrier to flexibility in the supply chain?
Set-up time.
The time it takes to change from one volume to another and from making one variant to another.
Define economies of scope and explain why the trend is moving away from economies of scale.
The efficiency gained by producing variety.
The trend is moving towards economies of scope due to increased information sharing throughout the supply chain which enables a faster and more accurate response to demand.
