Supply Chain

Question 1

External Suppliers

Answer 1

Tier 1 supplier: supplies delivery to the processor
Tier 2 supplier: directly to tier 1
Tier 3 Supplier: directly to tier 2

Question 2

Components of supply chain

Answer 2

• External Suppliers
• External distributors transport finished products to appropriate location
• Internal functions: processing, purchasing, planning and control, quality, shipping

Question 3

What does logistics include?

Answer 3

Traffic Management: arranging the method of shipment for both incoming and outgoing products or material
Distribution Management - movement of material from manufacturer to the customer.

Question 4

Backward integration vs Forward integration

Answer 4

• Backward Integration: owning or controlling sources of raw material
• Forward Integration: owning or controlling channels of distribution

Question 5

Vertical vs Horizontal integration

Answer 5

• Vertical Integration: a measure of how much of the supply chain is owned or operated by the manufacturer
• Horizontal Integration: acquisition, merger, or expansion of a business that increases the market share in its existing industry.

Question 6

When should a company insource vs outsource?

Answer 6

• Is product/service technology critical to firm’s success?
• Is product/service a core competency?
• Is it something your company must do to survive?

Question 7

What does Supply chain operations reference model examine?

Answer 7

reliability,flexibility,expenses and assets/utilization

Question 8

What are the most important factors of a partnership?

Answer 8

impact
intimacy
vision