Module 2 Flashcards
Supply Chains
What is the definition of ‘nodes’?
Fixed locations where value is created and consumed that are connected by transportation arcs.
What is the traditional model of competition?
Where individual firms as links in the chain competed horizontally across the value creation process against firms producing similar goods or services.
Believed that profits optimized locally by overcharging customers and underpaying vendors would translate into optimum global value creation.
What is the supply chain model of competition?
Where entire supply chains compete vertically along the value creation process against other supply chains.
Links in the chain sub-optimize so that value created for end product can be maximized and global optimization can be achieved.
What is horizontal competition?
Used by the traditional model where firms compete across the value creation process against other firms producing similar goods or services.
What is vertical competition?
Used by the supply chain model where firms along the value creation process collaborate as entire supply chains to compete against other supply chains.
Describe the modern supply chain?
Cost is generated by every link, but value is only generated by the end product.
Transportation connects these links.
Describe the key principle that makes the modern “Supply Chain” model of competition different from the “Traditional” model.
Optimizing locally vs optimizing globally
What are the three challenges to the global supply chain economy?
- more volatile supply and demand
- shorter product life cycles
- blurring of traditional organizational boundaries
What is integrated logistics management?
System that combined inbound logistics with outbound logistics to improve system efficiency and customer experience.
