BUS 371 Study Guide - Fall 2018, Comprehensive Midterm Notes - Supply Chain Management, Time, Supply Chain
12 Oct 2018
School
Department
Course
Professor
BUS 371
MIDTERM EXAM
STUDY GUIDE
Fall 2018
BUS 371 – Supply Chain Management
Lecture 1 – Supply Chain
What is Supply Chain?
- All activities involved, directly/indirectly, in fulfilling customer request
a. Includes suppliers, manufacturers, transporters, warehouses, retailers, customers
- Supply chains = dynamic network systs that require effective coordination of info up and down
supply chain
Purpose of Supply Chain
- Supply Chain Services:
a. Time → buffering time b/w production and consumption
b. Distance → spanning location of production and consumption
c. Quantity → producers specialize in large quantities of limited assortment
d. Assortment → consumers seek small quantities and wide assortment
Primary Characteristics of SCM (Supply Chain Management)
- SCM as an operating discipline can be summarized as practice of these
a. Performance excellence
i. Customer satisfaction at the lowest total cost
b. Collaboration w/ supply chain partners
i. Coordinating operating activities
c. Information technology
i. Enabling sc resource optimization
Beer Game Supply Chain
- Network
a. Simplified, one participant in each stage
- Operating processes
a. Ship beer
b. Manage inventory
c. Order beer
- Participants typically cark the whip
a. Game starts w/ steady demand
b. Incr in demand is generated
c. Induces variation in system
d. Participants try to compensate → errors are amplified
Supply Chain Dynamics
- Variation reduction
a. Reducing variation = primary objective os SCM
b. Sources of variation in supply chains not obvious in dynamic supply chain syst
- Bullwhip effect
a. Acting in isolation w/ limited info
i. Supply chain managers make decisions that are magnified upstream resulting in
stockouts or overstock
find more resources at oneclass.com
find more resources at oneclass.com
b. Factors contributing
i. Lead time impact on supply chain
ii. Impact of batch ordering
iii. Magnifying effects of inflated orders
iv. Demand forecasting inaccuracy
v. Info and decision isolation
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
All activities involved, directly/indirectly, in fulfilling customer request: includes suppliers, manufacturers, transporters, warehouses, retailers, customers. Supply chains = dynamic network systs that require effective coordination of info up and down supply chain. Scm as an operating discipline can be summarized as practice of these: performance excellence. Customer satisfaction at the lowest total cost: collaboration w/ supply chain partners. Network: simplified, one participant in each stage. Operating processes: ship beer, manage inventory, order beer. Participants typically cark the whip: game starts w/ steady demand, incr in demand is generated, induces variation in system, participants try to compensate errors are amplified. Variation reduction: reducing variation = primary objective os scm, sources of variation in supply chains not obvious in dynamic supply chain syst. Bullwhip effect: acting in isolation w/ limited info. Supply chain managers make decisions that are magnified upstream resulting in stockouts or overstock: factors contributing. Lecture 2 chapter 1: introduction to supply chain management.
