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Global Supply Chain Management > WEEK 1 > Flashcards

WEEK 1 Flashcards

1
Q

What is a supply chain?

A

A set of organizations.
Includes movement of information, goods and funds.

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2
Q

The 5 Supply chain stages

A
  1. COSTUMERS
  2. RETAILERS
  3. DISTRIBUTORS
  4. MANUFACUTERS
  5. SUPPLIERS
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3
Q

Does all stages present all supply chains?

A

No, for exmaple no retailer or no distrobuter

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4
Q

What is supply chain management?

A

Set of approaches, teqhiniques and tools —-> maximising profit + cosumer satisfaction

Uses the tools to integrate/ cordinate with the SC stages

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5
Q

The three flows

A
  1. Flow of goods
  2. Flow of funds
  3. Flow of information
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6
Q

What is the SC surplus?

A

SC surplus = costumer value - SC cost

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7
Q

Costumer value

A

The maximum amount a costumer is willing to pay for the product

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8
Q

SC cost

A

The cost the supply chain incures in filling hte consumers request

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9
Q

The desision phases in a supply chain

A

SC strategy/design (structer SC over the upcoming years)
SC planning (next quarter or year)
SC chain operaation (daily/weekly operational descions)

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10
Q

What is Strategic/design SC decisions? Uncertainy handeling? What decions is made here?

A
  • It is longterm decisions and expensicve to reverse - important to account market uncertainty.
  • Wheater to outsorce or perform in-house operation
  • Locations and capabilities of facilities
  • Where products should be store
  • Modes of transportation
  • Information systems
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11
Q

What is important to concider SC decion: planning?

A

Demand uncertainty, Account exchange rates, competition over the time horizon.

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12
Q

Planning decions in SC decion: planning?

A
  • Which markets will be supplied from which locations?
  • Backup locations
  • Inventory policies
  • Timing and size of promotions

Goal is to maximize SC surplus over the planning horizon.

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13
Q

SC: opperations? And operations decisions?

A

Time horizon is weekly or daily.
SC configuraton is fixed and operating policies are deteminded.

Operation decisions:
- Allocate orders to inventory or production
- Delivery schedules

Short time horizon —> Much less uncertainty

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14
Q

Wal-Mart is a leader in supply chain. Tell more about their SC design, planning and operations!

A
  1. Investing a lot in transportation and information infrastructure.
  2. Making sure things move smoothly - both goods and information.
  3. Stores gathering close to distribution centers for quick restocking.
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15
Q

What was the problem with Webvan business idea?

A

Groceries were delivered to costumers home —> higher labor+transportation costs

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16
Q

Cycle view of SC

A
  1. Costumer
    - Costumer order cycle
  2. Retailer
    - Replenishment cycle
  3. Distrobuter
    - Manufactor cycle
  4. Manufactor
    -Procurement cycle
  5. Supplier
17
Q

Each cycle consists of six sub-prcesses

A

Check pictures.

18
Q

Pull?

A

Execution is initiated in response to costumer order. For example. car-order.

19
Q

Push?

A

Execution is initiated in action of costumer orders, based on forecasts rather than actual demand. For exmample, Arla produces milk.

20
Q

Goal of push/pull boundary?

A

To find a boundery such that the SC can match supply and demand effectively.

21
Q

Zara strategy:

A

Highly responsive to changing trends with affordeble prices.

The predictable demand is sourced from its Asian locations,
Less predictable demand is sourced out of Europe.

Zara’s delivery time: 24 hours for European stores and 48 hours for
American & Asian stores.

22
Q

What is a compatetive strategy?

A

Based on compative strategy is based on costumers priorites.

A companies competative strategy defines, relavite to its competitiors, the set of costumer needs that it seeks to satisfy through its product/services.

Tex. IKEA - budget, high quality.
Wal-Mart: high availability of a variety of products in reasonable quality at
low prices.

23
Q

Value chain

A

New product development –> Marketing and Sales –> Operations –> Distrobution –> Service

To execute a company’s competitive strategy, all the functions in the
value chain play a role and each must develop its own strategy

24
Q

What would you see in a supply chain if you have more pull?

A
  • A lot of costs —> a lot of transportation costs, fixed prices
  • If a lot of push, a lot of everything (then the small amounts of ordering everything, will become more expensive)

-High waiting time

25
Q

Supply Chain Strategy?

A

Defines the nature of all the functions, it specifies what each function should do partically well.

Tex. Dell decides to directly sell, Cisco uses contract manufactures.

It also includes design decisions regarding inventory, transportaton, operating facilities abd information flows.

Tex, Amazon builds warehouses and Toyota has production facillites in each major markets.

26
Q

How do you aschive strategic fit?

A
  • Compatitive and supply chain strategies must have alligned goals.
  • Via SC design, processses and operations!
27
Q

A campany may fail because of what?

A

-Fail in strategic fit
-Overall SC cannot provide the capabilities to support the desired strategic fit.

  • Marketing department prommises that can not be fullfilles (very quick delivery and large variety of items). Toys R Us case.
    • At the same time, distribution is aiming for cheapest transportation
28
Q

Demand Uncertainty

A

Hard to predict how much a company will sell. Demand from diffrent costumer segments varies along several attributes:
- Quantity in each lot
* Response time (emergency order for repair vs. regular order)
* Product variety
* Service level (i.e., availability)
* Price
* Desired rate of innovation

29
Q

Implied demand uncertainty

A

Implied demand uncertainty refers to the difficulty in predicting customer demand for a product based on factors other than traditional market signals. For instance, when launching a new tech gadget, such as a virtual reality headset, it’s hard to gauge demand because it depends on factors like consumer interest, marketing effectiveness, and competitor reactions. This uncertainty makes it challenging for businesses to forecast sales accurately and plan inventory levels and production schedules accordingly.

What amount of uncertainty company accept, according to their promises.
- 200 people walks into AH, everyone buys milk and they run out. AH, places a new order and immediate new one comes. Chaises the demand, has high implied demand uncertainty.
- Lidl, will not do that. If they run out, they wait for the planned. Very low implied demand uncertainty.

30
Q

Supply chain Catagoristics. Describe stable and envolving.

A

Stable: Manufacturing processes and technology are mature, supply base is well estabilshed. For example, fashion industry - supply is stable.

Envolving: Manufacturing processes and technology are under early development and a re changing fast. Supply base is limited in size and experience. Tex. AstraZeneca fails to supply the Eu vaccine.

31
Q

Supply Chain Responsiveness includes a supply chain’s ability to:

A

a.) respind to a wide range of quantities demand
b.) meet short lead times
c.) handle a large variety of products
d.) build highly innovative producs
e.) meet high service level
f.) handle supply uncertainty

Responsiveness comes with a cost —> SC efficency.
Increasing responsiveness = more cost that lowers efficency. Learn picture.

32
Q

Cost-responsiveness efficency frontier.

A

A graph of responsiveness (y) and cost (x). You want to be on the front, where on the front depends on your compitative strategy.See picture in the end of presentation 2.

33
Q

Supply Chain Efficency

A

Minimizing cost in the supplychain. When a company wants to respond quickly to customer needs, like by having more inventory or faster delivery, it often means spending more money. So, while being responsive is good for customers, it can make the supply chain less efficient because it costs more.

34
Q

Cost-Responsive Efficient Frontier

A

See picture. But basicalllý a curve showing the lowest possible cost for a given level
of responsiveness.

Lowest cost is defined based on existing technology; not every firm is able to operate on the efficient frontier, which represent the cost-responsiveness performance of the best sc.

35
Q

Responsivness spectrum:

A

Some companys focus soley on being responisble while other just on producing as low costs as possible. Look picture.

36
Q

Achining strategic fit and implied uncertainy relation. Name the goals.

A

Degree of CS responsiveness is
consistent with the implied uncertainty.

The goal is:
- high responsiveness when implied uncertainty is high
- efficiency for a supply chain facing low implied
uncertainty.

37
Q
A

Global Supply Chain Management (2 decks)

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