L5 - Structure and scope Flashcards
chapter 5
What are the two types of suppliers?
Supplier side: a network of perspective means setting an operation
First-tier suppliers have a direct relationship with the operation
Secon tear suppliers can also supply directly but they miss a link to the operations
What are the two types on the demand side?
First-tier demand: suppliers and customers have direct relationship with the operation
Secon tear demand: suppliers and customers are separate from the operation
Why consider the supply network?
Understand competitivenes
Identify significant links in the network
Upstream: operations in the supply chain that are towards the supply side
Downstream: operation in the supply chain between the operations and the end customers
Decisions in the supply network;outsorcing, vertual integration, location?
Outsourcing: giving the work to a third party that has previously been done in-house.
Vertical integration: the degree to which we own the operation
Location
What decisions rely on location?
Change in demand or supply
Expansion purposes
Depletion of basic inputs
What are the location techniques?
Weighted score method: comparing the atractiveness of alternative locations based on some factor
The center of gravity method: uses physical analogy of balance to determine the location that balances the weighted importance
What is disintegration?
the emergence of an operation in a supply network that separates two operations that were previously in direct contact
What is spatially variable cost?
cost that changes based on location
What is the difference between economies of scale and diseconomies of scale?
economies of scale: the larger the operation, the lower the cost of running it becomes
diseconomies of scale: the larger the operation, the higher the cost of running it becomes
What is the difference between capacity-leading and capacity-lagging?
capacity-leading: having more capacity of the forecast demand
capacity lagging: having less or equal to the forecast demand
