Seance 10

Question 1

Supply chain management :

Answer 1

The management of a network of interconnected businesses

Question 2

The smile of value creation:

Answer 2

Smiling curve
Relationship btw value added and market knowledge

—> value-added is becoming increasingly concentrated at the upstream and downstream ends of the value chain

Question 3

Value chain climbing

Answer 3

Outsourcing reduces a buyer’s production costs but it also gives rise to the phenomenon whereby the supplier can climb the value chain by supplying

Question 4

Bull whip effect

Answer 4

Phenomenon where orders to the supplier tend to have larger variance than sales to the buyer

Question 5

Causes for bullwhip effect

Answer 5

1-rationing Game
2-price variations
3-order batching
4-demand signal processing

Question 6

Order batching

Answer 6

Retailers (buyers) order weekly of even monthly which creates variations in the demand as there may be a surge in the demande at some stage

Question 7

Fisher’s model : functional vs innovative products

Answer 7

Products demand uncertainty :
1-Low for functional products and high for innovative products

2-efficient vs responsive strategy :
Efficient supply chain (low responsiveness)
Responsive SC (min market mediation costs )

3- marching products with supply chain strategies

Functionality product: efficiency
Innovative product: responsiveness

Question 8

Functional products

Answer 8

Pasta

-satisfy basic needs

Question 9

Innovative products

Answer 9

Smartphones

Newness
Change over time
Difficult to predict
Shirt life cycle

Question 10

Physical efficiency :

Answer 10

• minimise physical costs

- supply predict demand at the lowest cost possible

Question 11

Market responsiveness

Answer 11

Respond quickly to unpredictable demand in order to minimize stock outs and obsolète inventories

Postponement : modula design in order to implement product differentiation