8 Supply Chain Network Design and Integration Free Online FlashCards

What does supply chain network design determine?

It determines how facilities, capacity, sourcing, inventory, and product flows are arranged to meet demand while balancing total cost, speed, service, and resilience.

What are nodes and links in a supply network?

Nodes are entities such as suppliers, plants, warehouses, and customers. Links connect them through transportation and information flows.

What does a facility's role specify?

A facility role specifies what a site makes, stores, postpones, or ships, and which products or markets it serves.

What is capacity in supply chain planning?

Capacity is the maximum output or throughput a resource can support over a defined period.

Why can ample total capacity still fail to meet demand?

Total capacity may be sufficient, yet demand can go unmet if capacity is in the wrong place, serves the wrong products, or cannot be reached quickly enough.

What is one benefit and one cost of flexible capacity?

Flexible capacity can help meet demand peaks and recover from disruption, but retaining or using it can raise investment or operating costs.

What do flow decisions assign?

Flow decisions assign quantities and paths through the network, subject to limits such as supply, production, facility capacity, demand, and delivery requirements.

What does cross-functional integration mean in network design?

Integration coordinates decisions across functions using shared assumptions; it is more than simply combining their reports.

Which plans should a shared demand forecast inform?

A shared demand forecast should inform the capacity plan, purchasing commitments, production schedule, and inventory targets.

What can planners vary when comparing network alternatives?

Planners compare alternatives by varying facility locations, capacities, sourcing, flow assignments, and inventory placement.

How is Orchestrate positioned in the ASCM SCOR framework?

The ASCM SCOR framework places Orchestrate above Plan, Order, Source, Transform, Fulfill, and Return.

What trade-off can fewer, larger facilities create?

Fewer, larger facilities can lower facility and inventory expenses through scale economies, but may increase delivery distance and disruption exposure.