Lecture 1

Question 1

What is Supply Chain Management?

Answer 1

A set of approaches utilized to efficiency integrate suppliers, manufacturers, warehouses, and stores. In order to minimize system wide costs while satisfying service level requirements. SCM is not strictly a cost reduction paradigm!

Question 2

Firms combine goods and services. They distinguish 4 types:

Answer 2

1. Pure goods (e.g. Chemicals)
2. Core goods (e.g. Automobiles)
3. Core services (e.g. Hotels)
4. Pure services (e.g. Medical service)

Question 3

3 Key observations in Supply Chain Management

Answer 3

1. Every facility that impacts costs need to be considered
2. Efficiency and cost-effectiveness throughout the system is required
   3 Multiple levels of activities (Strategic - Tactical - Operational)

Question 4

Supply Chain Risk?

Answer 4

The likelihood of a disruption that would impact the ability of a company to continuously supply products or services.

Question 5

3 step Risk Management Framework

Answer 5

1. Identify the sources of potential disruptions
2. Assess the potential impact of the risk
3. Develop plans to mitigate the risk (e.g. contingency planning, insurance)

Question 6

Sustainability

Answer 6

Ability to meet current resource needs without compromising the ability of future generations to meet their needs