Intro to supply chains

Question 1

What is a supply chain?

Answer 1

Two or more parties linked by a flow of resources that ultimately fulfil a customer request.

Question 2

What is logistics?

Answer 2

Managing the movement and storage of products: It’s a subsection of supply chain management.

Question 3

What three things flow in a supply chain? What two ways can they flow?

Answer 3

The three things that make up a supply chain are:
1) Products
2) Money
3) Information

They can either flow upstream ( from customer to supplier) or downstream (from supplier to customer)

Question 4

Explain the cycle view of supply chain processes.

Answer 4

The processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of the supply chain.

Question 5

Explain the push/pull view of supply chain processes.

Answer 5

The pull view states that action should occur in the supply chain in response to a customer order.

The push view states action should occur in a supply chain in anticipation of a customer order.

Question 6

Give the 4 fundamentals of SCM.

Answer 6

1) Setting objectives
Gain a competitive advantage by enhancing customer service and optimising costs and investments

2) SCM philosophy
Effective integration and harmony between the internal supply chain in an organisation (which consists of purchasing, manufacturing, storage, movement and selling of products) and the external supply chain

3) Management of flows
Holistic and harmonious cooperation throughout the supply chain

4) Relationships
Create strong relationships between internal and external supply chains AND between customers and suppliers.