Pg. 249
1. Supply chain management is planning, design and control of the materials and
information that are flowing through the supply chain so they can meet the wants of
customers. Demand management is when the goods and services in the supply
chain are being managed.
2. suppliers of beef, vegetables and rolls
-factories and distribution centers
-the franchises that sell Big Macs
-Customers
1. Oil drilling
– oil wells
-refinery
-gas stations
-customer vehicles
1. Suppliers of automobile repair tools and parts
-warehouse
-repair shops
-customer vehicles
1. Suppliers of books
-paper manufacturer
-publisher
-printing press
-book stores
-customers
3. It is an important area to study because it can be a long period of time for the
materials to travel through the supply chain and materials spend a lot of time
waiting in inventory so there is a chance there to reduce the total supply chain cycle
time and gain the same reduction in inventory as well as increased flexibility and
reduced costs.
4. Lead time can affect how long it can take to complete an order. Shipments can end
up arriving late if the lead time is prolonged, which affects delivery performance.
Forecast errors can cause a supplier to under or overestimate demand, which can
lead to stock outs.
Pg. 250
10.The approach that should be used is the one that will lead to the greatest
improvement in the measures selected for improvement. The exchange of benefits
and costs or disruption to the supply chain must also be considered. The changes
that occur must be consistent with the operations strategy and goals.
11.Offshoring is getting the work done in a different country. Outsourcing is when an
organization contracts work to a third party. Global sourcing is a strategy that
businesses use to try and find the most cost efficient location for manufacturing.
12.Cross docking is an innovation in transportation that involves supplier shipments
from docks at the warehouses and transferring them to the customer’s truck at
another dock. This reduces the time that items spend in the warehouse inventory. It
also speeds up the warehousing function.
13.E-procurement reduces transaction costs that occur between trading partners in a
supply chain. It also helps to improve the quality of the information exchange
which directly impacts the core operations of a company. It benefits the company
who is placing the order as well as the company who is receiving the order.
Pg. 276
1. Demand is measured by taking the amount that customers want and desire. Sales
measure the amount that the customers actually end up purchasing. Sales accurately
