Key Terms

Question 1

System Nervousness

Answer 1

Fluctuations in system output or process schedules due to minor variations in input, causing inefficiency and instability in supply chain performance.

Question 2

Demand Variability

Answer 2

Fluctuations in customer demand over time, influenced by factors such as seasonality, consumer preferences, and economic conditions.

Question 3

Supply Disruptions

Answer 3

Interruptions in the flow of goods or materials within a supply chain, caused by issues like supplier failures, natural disasters, or geopolitical events.

Question 4

Lead Time Variability

Answer 4

Differences in the time taken to deliver products or services, impacting inventory levels and scheduling.

Question 5

Bullwhip Effect

Answer 5

Amplified demand variability as information moves upstream in the supply chain, often due to over-ordering or miscommunication.

Question 6

Non-Transparency

Answer 6

Lack of visibility and information flow among supply chain entities, leading to inefficiencies and increased risks.

Question 7

Ripple Effect

Answer 7

Cascading disruptions throughout a supply chain caused by localized failures.

Question 8

Lack of Information Sharing

Answer 8

Insufficient exchange of critical supply chain data among stakeholders, leading to suboptimal decisions.

Question 9

External Events

Answer 9

Uncontrollable occurrences (e.g., natural disasters, pandemics) that affect supply chain operations.

Question 10

Network Dynamics and Design

Answer 10

Study and optimization of supply chain structures, focusing on the interactions between components and their design for efficiency.

Question 11

Simulation Techniques

Answer 11

Discrete Event Simulation (DES): Models systems as sequences of discrete events, useful for operational analysis. Agent-Based Simulation (ABS): Simulates interactions of autonomous agents to assess system dynamics. System Dynamics: Uses feedback loops and causal relationships to model long-term and high-level supply chain strategies.

Question 12

Knowledge Management (KM)

Answer 12

The process of creating, sharing, and effectively using knowledge to optimize supply chain decision-making and resilience.

Question 13

SAP Supply Chain Control Tower

Answer 13

An integrated platform offering real-time visibility and analytics to manage supply chain operations effectively.

Question 14

Operations

Answer 14

Purposeful and methodical actions performed as part of a process to achieve specific goals. Operations management involves planning, organizing, coordinating, and controlling resources to produce goods or services efficiently.

Question 15

The Systems Approach

Answer 15

A holistic framework that examines the interconnections and interdependencies within a system. It involves analyzing all elements affecting the system, excluding irrelevant factors, to achieve optimal decision-making and resource utilization.

Question 16

Simulation

Answer 16

The use of mathematical or computational models to mimic the behavior of a real-world system. Simulation allows testing and analysis of scenarios in a risk-free environment to understand system performance and predict outcomes under various conditions.

Question 17

Optimization

Answer 17

A mathematical approach to finding the best possible solution under given constraints to maximize or minimize an objective, such as cost, efficiency, or throughput.

Question 18

Simulation-Based Optimization

Answer 18

Integration of simulation and optimization methods to enhance decision-making. Simulation evaluates the performance of scenarios generated by optimization techniques, providing deeper insights into complex systems where analytical solutions may not suffice.