Study 1 Supply Chain Management Foundations and Strategy with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
What is the purpose of supply chain management?
Supply chain management coordinates the organizations, activities, and flows involved in moving a product or service from inputs to customers, aligning them with customer needs and business goals.
What three flows connect supply chain participants?
The three flows are product and service, information, and financial flows.
How does logistics differ from supply chain management?
Logistics focuses on moving and storing goods, services, and related information. SCM has a broader coordinating role across internal functions and external partners.
What is a supply chain operating model?
An operating model is how an organization arranges its processes, facilities, inventory, partners, and decision-making to serve its market.
How can business priorities shape supply chain design?
A low-price strategy may prioritize efficient sourcing, high asset utilization, and economical transportation. Rapid delivery may instead call for nearby inventory, flexible capacity, or faster fulfillment.
Why should supply chains be optimized end to end?
Because decisions interact across the system: more inventory can improve availability but tie up cash, while faster transport can shorten delivery time but raise costs.
How does information flow support a supply chain?
Information such as orders, forecasts, inventory records, shipment status, and capacity data helps partners coordinate plans and daily work.
How can product flows move in both directions?
Product and service flows move toward customers through sourcing, production, storage, and delivery; returns and reusable materials may move in the opposite direction.
What defines make-to-stock production?
Make-to-stock produces goods in advance and holds finished inventory for rapid delivery. It suits predictable demand but risks excess or obsolete stock.
What is the main trade-off in make-to-order production?
Make-to-order begins production after an order arrives. It can reduce finished-goods inventory and enable customization, but customers may wait longer.
How does assemble-to-order work?
Assemble-to-order stocks components or subassemblies and completes the product after an order. It can balance variety and speed but depends on reliable components and coordinated assembly.
What distinguishes lean from agile supply chain practices?
Lean approaches emphasize efficiency and waste reduction; agile approaches emphasize responsiveness when demand or supply changes.