Global Supply Chains & Manufacturing - Concepts

Question 1

what is a supply chain

Answer 1

all stages involved, directly or indirectly in fulfilling a customer request

Question 2

what are some of the processes included in a supply chain

Answer 2

supplying raw materials
manufacturing
transporting
storage
retail

product development
marketing

Question 3

example of a supply chain where not all typical supply chain stages are involved

Answer 3

no retailer eg Amazon

Question 4

can supply chains compete

Answer 4

yes - eg moving production

Question 5

examples of supply chain risks presented in the news in recent times

Answer 5

covid = factories close down
suez canal block
brexit

Question 6

where was the just in time philosophy originated from

Answer 6

Japan 1980s

Question 7

what is the just in time philosophy

Answer 7

having products and raw materials arrive just as they are needed

Question 8

what are the advantages of a just in time model

Answer 8

cheaper as costs money to hold inventory

Question 9

what are the disadvantages of the just in time model

Answer 9

if one thing goes wrong there is a knock on effect

Question 10

what is the overall objective of supply chains

Answer 10

to maximise overall value reated

Question 11

what is the only source of revenue in the supply chain

Answer 11

customer

Question 12

what are the costs in a supply chain

Answer 12

flows of information, products or funds between stages of supply chain

Question 13

what is the purpose of supply chains

Answer 13

manage time lags e.g. historically only seasonal food, now we can import and grow off season

resolve issues of distance e.g. irish seafood exports to china

productivity based on quantity eg bulk food eg milk produced in bulk but consumed in portions

provide consumer with an assortment of choice eg supermarket

Question 14

what does SKU stand for

Answer 14

stock keeping unit

Question 15

what is vertical integration

Answer 15

successive stages in production and marketing all owned by a single organisation

Question 16

what is forward integration

Answer 16

acquisition by a firm of it’s distribution chain moving closer to contact with customers

Question 17

what is backward integration

Answer 17

acquisition by a firm of its supplier

Question 18

Explain Michael Porter’s concept of a ‘Value Chain’

Answer 18

aims to disaggregate operations into primary activities and supporting activities

profits is a function of all the efficiency of the other activities

Question 19

examples of food types that would be from wholesaler directly to retailer

Answer 19

artisen food

Question 20

example of food types that would be directly to customer

Answer 20

catering

Question 21

how is the traceability of food in a supply chain enabled

Answer 21

by technology

Question 22

what are the 3 decision phases in supply chain

Answer 22

strategy + design

planning

opertation

Question 23

how long could the strategy and design phases of a supply chain take

Answer 23

years

involves building factories, finding sights

Question 24

how long could the planning phase of a supply chain take

Answer 24

1/4 to 1 year

includes optimising use of supply chain

Question 25

how long could the operation phase of a supply chain take

Answer 25

daily/weekly addressing problems as they arise by tweaking the supply chain

Question 26

what are the two supply chain views

Answer 26

push and pull cycle

Question 27

what is a push/pull supply chain

Answer 27

processes are divided into 2 categories: push and pull push = in anticipation of customer order pull = in response to customer order

Question 28

what is the cycle view

Answer 28

a supply chain is a series of cycles manufacturing cycle customer order cycle etc

Question 29

what is the inventory / capacity trade off

Answer 29

there is a trade off between the amount of inventory you can store and having the capacity to produce

Question 30

what is the chase/flexibility strategy for capacity

Answer 30

when demand increases, ramp up capacity

Question 31

what is the level strategy of capacity

Answer 31

let inventory build up in anticipation of seasonal demand eg Air Conditioning has higher demand in summer. Build when low demand, use inventory when high demand

Question 32

what is the bullwhip effect

Answer 32

fluctuations in orders increase as they move up the supply chain

Question 33

example of how bullwhip effect distorts demand information within the supply chain

Answer 33

VOLVO - had excess inventory of eco friendly green cars as they weren't selling well - sales team were pushing to get rid of them by offering discounts - manufacturing saw sales picked up so ramped up production of these cares LACK OF COMMUNICATION

Question 34

what portion of the supply chain gets bigger share of value

Answer 34

top

Question 35

what is the concept of the smiling curve

Answer 35

high value activities occur on bottom and top of supply chain bottom = research and development (costs a lot to do) middle = assembly, offshored so low labour costs top = marketing and e-commerce (wages)

Question 36

how can a company increase their value in the supply chain

Answer 36

work with supplier reposition on smiling curve

Question 37

how is supply chain management increasingly becoming a strategic matter

Answer 37

want to mitigate risk want to collaborate with customers and suppliers to turn supply chain into value chain

Question 38

what is a value chain

Answer 38

full range of activities that firms engage in to bring product from conception to end use

Question 39

what is an in house value chain

Answer 39

everything done themselves from start to finish

Question 40

what is offshoring

Answer 40

typically movemement of production activities to remote, low-cost countries

Question 41

is offshoring intended for - cost reduction - market entry

Answer 41

cost reduction

Question 42

when calculating cost benefits of offshoring, what should companies also consider

Answer 42

- increase in duration - quality factors - risk