1 Supply Chain Management Foundations Free Online FlashCards

What is a supply chain?

A supply chain is the network of organizations and activities that brings a product or service from material sources to the people who use it.

What does supply chain management coordinate?

Supply chain management coordinates sourcing and procurement, production or conversion, logistics, and the information systems connecting these activities to meet customer needs and create value.

How does bread illustrate a supply chain?

A loaf’s chain can include farms supplying grain, mills making flour, bakeries producing bread, and distributors and stores delivering and selling it.

How can supply chain coordination improve service?

Coordination helps products reach customers in the right place at the right time, improving availability and service.

What is one trade-off of holding extra inventory?

Holding extra inventory can protect against delays, but ties up money and storage space.

What is material flow?

Material flow is the movement, transformation, and storage of physical goods through the supply chain.

How can rising bread sales affect upstream plans?

Timely sales information can help a bakery revise production and help suppliers prepare for greater flour demand.

How does logistics relate to supply chain management?

Logistics is one part of supply chain management; SCM manages the broader end-to-end network.

How can coordination control total supply chain cost?

Coordination can reduce unnecessary transportation, handling, production, and inventory costs across the network.

Why doesn’t SCM simply minimize every activity’s cost?

SCM balances customer service, cost, risk, and operational performance rather than minimizing the cost of each activity in isolation.

What activities create reverse material flows?

Returns, repairs, recycling, and disposal create reverse material flows upstream.

What information moves through a supply chain?

Information flow carries demand, orders, forecasts, inventory levels, production plans, delivery status, and product requirements.