Study 8 Supply Chain Management with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
What does supply chain management coordinate?
Supply chain management coordinates the organizations, processes, information, and resources that move a product or service from inputs to customers while balancing customer needs, cost, speed, quality, service, and risk.
How does logistics relate to supply chain management?
Logistics is the part of supply chain management concerned with the movement and storage of goods and related information.
What does supply chain design determine?
Supply chain design determines the network structure: facility locations, which facilities serve markets, and how materials and products move between them.
What is the trade-off between one large and regional distribution centers?
One large distribution center may reduce facility and inventory costs; several regional centers may shorten delivery times and offer alternatives if a location is disrupted.
What factors besides price matter when assessing suppliers?
Assess suppliers on more than quoted price: consider quality, reliability, lead time, capacity, financial and operational risk, and compliance.
What are the main trade-offs between single and multiple suppliers?
A single supplier can simplify coordination and sometimes lower purchasing costs, but concentrates risk. Multiple suppliers offer alternatives but can raise qualification, coordination, and purchasing costs.
How can a firm reduce dependence on one critical-component supplier?
A firm can use a primary supplier for most of its needs while keeping a qualified second source ready to supply during an interruption.
Which activities are included in logistics?
Logistics includes inbound movement, warehousing, inventory handling, transportation, order fulfillment, customer delivery, and reverse flows such as returns.
What should guide transportation choices?
Transportation modes differ in speed, cost, capacity, and suitability. Choose based on service requirements and the total cost of fulfilling them, not freight price alone.
What can happen when supply chain partners react independently to small order changes?
When small order changes are amplified as they move upstream, the chain can develop excess inventory, shortages, or unstable schedules.
How can supply chain partners reduce mismatches in their decisions?
Partners can share timely sales, forecast, inventory, capacity, and shipment information; agree on plans and responsibilities; and review exceptions together.
Which processes does the SCOR framework organize?
The SCOR framework includes planning, ordering, sourcing, transforming, fulfilling, and returning, supported by orchestration and integration.