supply chain chapter 15

Question 1

5 key issues of supply chain management

Answer 1

> determining appropriate level of outsourcing
managing procurement
managing suppliers
managing customer relationships
be able to quickly identify problems & respond to them

Question 2

4 recent trends in supply chain management

Answer 2

> > measure supply chain (ROI) Return On Investment
reevaluate outsourcing
integrate IT
managing risks

Question 3

4 complexities involved with global supply chain management

Answer 3

> > language & cultural differences
currency fluctuations
armed conflicts
increased transportation costs & lead times

Question 4

5 strategic responsibilities of supply chain management

Answer 4

1) supply chain strategic alignment—
> aligning supply & distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed

2) network configuration —
> determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers

3) information technology —
> integrating systems and processes throughout the supply chain to share information, including forecasts, inventory status, tracking of shipments , and events

4) product & services —
> making decisions on new product and services selection and design.

5) capacity planning —-
> assessing long-term capacity needs, including when and how much will be needed and the degree of flexibility to incorporate

Question 5

6 tactical responsibilities of supply chain management

Answer 5

1) forecasting —
> prepare and evaluate forecasts

2) sourcing —
> choose suppliers and some make- or-buy decisions

3) operations planning —
> coordinate the external supply chain and internal operations

4) managing inventory —
> decide where in the supply chain to store the various types of inventory

5) transportation planning —
> match capacity with demand

6) collaborating —
> work with supply chain partners to coordinate plans

Question 6

8 operational responsibilities of supply chain management

Answer 6

scheduling —
> short-term scheduling of operations and distribution

2) receiving —
> management of inbound deliveries from suppliers

3) transforming —
> conversion of inputs into outputs

4) order fulfilling —
> linking production resources and/or inventory to specific customer orders

5) managing inventory —
> maintenance and replenishment activities

6) shipping —
> management of outbound deliveries to distribution centers and/or customers

7) information sharing —
> exchange of information with supply chain partners

8) controlling —
> control of quality inventory, and other key variables and implementing corrective action, including variation reduction, when necessary

Question 7

requirements of effective supply chain management

Answer 7

using strategic sourcing to create a supply chain involves
> plan 
> source 
> make 
> deliver 
> manage returns 

achieving an  effective supply chain requires meeting the goal of having an cooperative relationship among supply chain partners that will facilitate planning and coordination of activities by having --- 
> trust -- 
> effective communication ---
> information velocity ---
> supply-chain visibility ---
> event management capability ---
> performance metrics ---

Question 8

5 challenges in creating effective supply chain management

Answer 8

1) barriers to integration of separate organizations
2) getting the entire firm “on board” of supply chain management
3) response time
4) variability & uncertainty
5) different trade offs
»» inventory trade off
»» transportation cost trade off
»» customer service trade off