WEEK 1

Question 1

What is a supply chain?

Answer 1

A set of organizations.
Includes movement of information, goods and funds.

Question 2

The 5 Supply chain stages

Answer 2

1. COSTUMERS
2. RETAILERS
3. DISTRIBUTORS
4. MANUFACUTERS
5. SUPPLIERS

Question 3

Does all stages present all supply chains?

Answer 3

No, for exmaple no retailer or no distrobuter

Question 4

What is supply chain management?

Answer 4

Set of approaches, teqhiniques and tools —-> maximising profit + cosumer satisfaction

Uses the tools to integrate/ cordinate with the SC stages

Question 5

The three flows

Answer 5

1. Flow of goods
2. Flow of funds
3. Flow of information

Question 6

What is the SC surplus?

Answer 6

SC surplus = costumer value - SC cost

Question 7

Costumer value

Answer 7

The maximum amount a costumer is willing to pay for the product

Question 8

SC cost

Answer 8

The cost the supply chain incures in filling hte consumers request

Question 9

The desision phases in a supply chain

Answer 9

SC strategy/design (structer SC over the upcoming years)
SC planning (next quarter or year)
SC chain operaation (daily/weekly operational descions)

Question 10

What is Strategic/design SC decisions? Uncertainy handeling? What decions is made here?

Answer 10

• It is longterm decisions and expensicve to reverse - important to account market uncertainty.
• Wheater to outsorce or perform in-house operation
• Locations and capabilities of facilities
• Where products should be store
• Modes of transportation
• Information systems

Question 11

What is important to concider SC decion: planning?

Answer 11

Demand uncertainty, Account exchange rates, competition over the time horizon.

Question 12

Planning decions in SC decion: planning?

Answer 12

• Which markets will be supplied from which locations?
• Backup locations
• Inventory policies
• Timing and size of promotions

Goal is to maximize SC surplus over the planning horizon.

Question 13

SC: opperations? And operations decisions?

Answer 13

Time horizon is weekly or daily.
SC configuraton is fixed and operating policies are deteminded.

Operation decisions:
- Allocate orders to inventory or production
- Delivery schedules

Short time horizon —> Much less uncertainty

Question 14

Wal-Mart is a leader in supply chain. Tell more about their SC design, planning and operations!

Answer 14

1. Investing a lot in transportation and information infrastructure.
2. Making sure things move smoothly - both goods and information.
3. Stores gathering close to distribution centers for quick restocking.

Question 15

What was the problem with Webvan business idea?

Answer 15

Groceries were delivered to costumers home —> higher labor+transportation costs

Question 16

Cycle view of SC

Answer 16

1. Costumer
   - Costumer order cycle
2. Retailer
   - Replenishment cycle
3. Distrobuter
   - Manufactor cycle
4. Manufactor
   -Procurement cycle
5. Supplier

Question 17

Each cycle consists of six sub-prcesses

Answer 17

Check pictures.

Question 18

Pull?

Answer 18

Execution is initiated in response to costumer order. For example. car-order.

Question 19

Push?

Answer 19

Execution is initiated in action of costumer orders, based on forecasts rather than actual demand. For exmample, Arla produces milk.

Question 20

Goal of push/pull boundary?

Answer 20

To find a boundery such that the SC can match supply and demand effectively.

Question 21

Zara strategy:

Answer 21

Highly responsive to changing trends with affordeble prices.

The predictable demand is sourced from its Asian locations,
Less predictable demand is sourced out of Europe.

Zara’s delivery time: 24 hours for European stores and 48 hours for
American & Asian stores.

Question 22

What is a compatetive strategy?

Answer 22

Based on compative strategy is based on costumers priorites.

A companies competative strategy defines, relavite to its competitiors, the set of costumer needs that it seeks to satisfy through its product/services.

Tex. IKEA - budget, high quality.
Wal-Mart: high availability of a variety of products in reasonable quality at
low prices.

Question 23

Value chain

Answer 23

New product development –> Marketing and Sales –> Operations –> Distrobution –> Service

To execute a company’s competitive strategy, all the functions in the
value chain play a role and each must develop its own strategy

Question 24

What would you see in a supply chain if you have more pull?

Answer 24

• A lot of costs —> a lot of transportation costs, fixed prices
• If a lot of push, a lot of everything (then the small amounts of ordering everything, will become more expensive)

-High waiting time

Question 25

Supply Chain Strategy?

Answer 25

Defines the nature of all the functions, it specifies what each function should do partically well. Tex. Dell decides to directly sell, Cisco uses contract manufactures. It also includes design decisions regarding inventory, transportaton, operating facilities abd information flows. Tex, Amazon builds warehouses and Toyota has production facillites in each major markets.

Question 26

How do you aschive strategic fit?

Answer 26

- Compatitive and supply chain strategies must have alligned goals. - Via SC design, processses and operations!

Question 27

A campany may fail because of what?

Answer 27

-Fail in strategic fit -Overall SC cannot provide the capabilities to support the desired strategic fit. - Marketing department prommises that can not be fullfilles (very quick delivery and large variety of items). Toys R Us case. - - At the same time, distribution is aiming for cheapest transportation

Question 28

Demand Uncertainty

Answer 28

Hard to predict how much a company will sell. Demand from diffrent costumer segments varies along several attributes: - Quantity in each lot * Response time (emergency order for repair vs. regular order) * Product variety * Service level (i.e., availability) * Price * Desired rate of innovation

Question 29

Implied demand uncertainty

Answer 29

Implied demand uncertainty refers to the difficulty in predicting customer demand for a product based on factors other than traditional market signals. For instance, when launching a new tech gadget, such as a virtual reality headset, it's hard to gauge demand because it depends on factors like consumer interest, marketing effectiveness, and competitor reactions. This uncertainty makes it challenging for businesses to forecast sales accurately and plan inventory levels and production schedules accordingly. What amount of uncertainty company accept, according to their promises. - 200 people walks into AH, everyone buys milk and they run out. AH, places a new order and immediate new one comes. Chaises the demand, has high implied demand uncertainty. - Lidl, will not do that. If they run out, they wait for the planned. Very low implied demand uncertainty.

Question 30

Supply chain Catagoristics. Describe stable and envolving.

Answer 30

Stable: Manufacturing processes and technology are mature, supply base is well estabilshed. For example, fashion industry - supply is stable. Envolving: Manufacturing processes and technology are under early development and a re changing fast. Supply base is limited in size and experience. Tex. AstraZeneca fails to supply the Eu vaccine.

Question 31

Supply Chain Responsiveness includes a supply chain's ability to:

Answer 31

a.) respind to a wide range of quantities demand b.) meet short lead times c.) handle a large variety of products d.) build highly innovative producs e.) meet high service level f.) handle supply uncertainty Responsiveness comes with a cost ---> SC efficency. Increasing responsiveness = more cost that lowers efficency. Learn picture.

Question 32

Cost-responsiveness efficency frontier.

Answer 32

A graph of responsiveness (y) and cost (x). You want to be on the front, where on the front depends on your compitative strategy.See picture in the end of presentation 2.

Question 33

Supply Chain Efficency

Answer 33

Minimizing cost in the supplychain. When a company wants to respond quickly to customer needs, like by having more inventory or faster delivery, it often means spending more money. So, while being responsive is good for customers, it can make the supply chain less efficient because it costs more.

Question 34

Cost-Responsive Efficient Frontier

Answer 34

See picture. But basicalllý a curve showing the lowest possible cost for a given level of responsiveness. Lowest cost is defined based on existing technology; not every firm is able to operate on the efficient frontier, which represent the cost-responsiveness performance of the best sc.

Question 35

Responsivness spectrum:

Answer 35

Some companys focus soley on being responisble while other just on producing as low costs as possible. Look picture.

Question 36

Achining strategic fit and implied uncertainy relation. Name the goals.

Answer 36

Degree of CS responsiveness is consistent with the implied uncertainty. The goal is: - high responsiveness when implied uncertainty is high - efficiency for a supply chain facing low implied uncertainty.