2 Supply Chain Strategy and Network Design Free Online FlashCards

What does a supply chain strategy define?

It defines how suppliers, facilities, inventory, information, and transportation will serve target customers and support competitive priorities.

What does supply chain network design determine?

It determines the supply chain’s structure and major flows, including facility locations and capacities, customer assignments, inventory placement, and transportation routes.

Why should planners test multiple network scenarios?

Planners should compare multiple plausible scenarios because demand, capacity, and transportation assumptions can change; one forecast should not be treated as certain.

What is supply chain responsiveness?

Responsiveness is the speed of completing customer order-to-delivery activities. Shorter lead times, strategically placed inventory, flexible capacity, and fast transportation can improve it.

What is supply chain resilience?

Resilience is the ability to withstand, recover from, and adapt to disruptions.

Which network-design areas can affect sustainability beyond transportation?

It includes more than transportation: facility locations, energy, packaging, inventory obsolescence, waste, labor practices, and product returns can affect environmental and social outcomes.

How can a retailer combine regional and centralized inventory?

A retailer might hold fast-moving products regionally for quicker delivery while keeping slower-moving items in centralized stock.

What is a key trade-off of a centralized network?

It can pool inventory and reduce the number of facilities, but may increase delivery distances and dependence on a few locations.

What is a key trade-off of a distributed network?

It can place products closer to customers and shorten delivery times, but generally requires more facilities, inventory, and coordination.

Which SCOR measure is a key indicator of responsiveness?

ASCM’s SCOR framework treats order fulfillment cycle time as a key responsiveness measure.

What network-design options can strengthen resilience?

Qualified alternative suppliers, backup capacity, flexible routing, supply-risk visibility, and contingency plans can help a network withstand disruptions.

How should a company decide where to invest in resilience?

Protect important products and flows when the consequences of disruption justify the cost; duplicating every resource is not the goal.