Introduction to supply chain managemen

Question 1

What is a value chain?

Answer 1

• Sequence of value-adding activities
  
  • Manufactured goods: Buy –> make/store –> move –> sell
• In practice, each step can add or destroy value, not only at that step but also for subsequent steps.

Question 2

What is supply chain?

Answer 2

• The system of suppliers, manufacturers, transportation, distributors, and vendors that exists to transform raw materials to final products and supply those products to customers

Question 3

What part of the supply chain is sometimes known as the distribution network?

Answer 3

That portion of the supply chain which comes after the manufacturing process is sometimes known as the distribution network.

Question 4

Show the supply chain useing the music Industry as an example

Answer 4

Question 5

Show the flow of goods, information and cash in the supply chain

Answer 5

Question 6

What is the definition of Supply Chain Management (SCM)?

Answer 6

• Definition of SCM:
  
  • Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed:
    
    • In the right quantities
    • To the right locations
    • At the right time
  • In order to
    
    • Minimize total system cost
    • Satisfy customer service requirements

Question 7

•What makes SCM difficult??

Answer 7

–Global optimization
–Uncertainty

Question 8

•All of the advanced strategies, techniques, and approaches for Supply Chain Management focus on?

Answer 8

–Global optimization
–Managing uncertainty

Question 9

Briefly, what is the difference between global and sequential optimisation?

Answer 9

Question 10

Why is global optimisation difficult?

Answer 10

• The supply chain is complex
• Different facilities have conflicting objectives
• The supply chain is a dynamic system
  
  • The power structure changes
• The system varies over time (think of Mexico wages vs. China wages + swine flu –> Purell shortage)

Question 11

How do objectives conflict between purchasing and manufacturing?

Answer 11

• Purchasing
  
  • Stable volume requirements
  • Flexible delivery time
  • Little variation in mix
  • Large quantities
• Manufacturing
  
  • Long run production
  • High quality
  • High productivity
  • Low production cost

Question 12

How do objectives conflict between retailers and customers?

(And which might be most important?)

Answer 12

• Retailers
  
  • Low inventory
  • Reduced transportation costs
  • Quick replenishment capability
• Customers
  
  • Short order lead time
  • High in stock
  • Enormous variety of products
  • Low prices

Question 13

Why is uncertainty difficult to deal with?

Answer 13

​

• Matching supply and demand is difficult
• Forecasting doesn’t solve the problem.
• Inventory and back-order levels typically fluctuate widely across the supply chain.
• Demand is not the only source of uncertainty:
  
  • Lead times
  • Yields
  • Transportation times
  • Natural Disasters (Examples of Sept. 11, Taiwan earthquake)
  • Component Availability