Lec. 1: Introduction

Question 1

What is a supply chain?

Answer 1

The network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer.

Question 2

What are the key flows of a supply chain?

Answer 2

• Physical flow
• Flows of information
• Resources (finance, people, equipment)

Question 3

What is supply chain management?

Answer 3

“SCM is the management, across and within a network of upstream and downstream organizations, of both relationships and flows of material, information and resources.”

Question 4

What is logistics?

Answer 4

Planning, implementing, and controlling procedures in the supply chain.

Question 5

What is TEU?

Answer 5

Twenty-foot equivalent unit, a measure of cargo capacity, based on a 20 ft container.

Question 6

What are the core trends making SCM important today?

Answer 6

• Finished goods rather than raw materials, giving lower transport cost sensitivity.
• Falling product prices brings focus to cost savings
• Deregulation of transport
• Productivity improvements (bulk to containers, engines, IT)
• Emphasis on inventory improvement
• Changes on company structure, less vertical integration.

Question 7

What are the 3 “S”s of supply chaim management?

Answer 7

“short” delivered from stock
“medium” made to order
“long” engineered to order

Question 8

What are the 3 flows in the S model of SCM?

Answer 8

• Order flows
• Fulfillment flow
• Payment flow