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Supply chain management: strategy, planning, and operation / Sunil Chopra, Peter Meindl. . The first edition of this book won the prestigious Book of the Year award in Each cycle consists of six subprocesses as shown in Figure Sixth Edition. Global Edition. SUPPLY CHAIN MANAGEMENT. STRATEGY, FLANNING, AND OPERATION. Sunil Chopra. Kellogg School of Management. PowerPoint Presentation (Download only) for Supply Chain Management: Strategy, Planning, and Operation, 6th Edition. Sunil Chopra, Northwestern University.
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What should the supply chain be able to do particularly well? Supply chain responsiveness takes many forms, including the ability to respond to a wide range of quantities, meet short lead times, handle a large variety of 2.
The Nordstrom supply chain must be highly responsive in the areas of handling highly innovative fashion products, customer response, and service level; they are effective in supplying well-heeled customers with merchandise and their return policy is legendary in the Pacific Northwest.
How can Nordstrom expand the scope of the strategic fit across the supply chain? Scope of strategic fit refers to the functions within the firm and stages across the supply chain that devise an integrated strategy with a shared objective.
Nordstrom can move in this direction by working with their suppliers as if they are actually owned by Nordstrom. Rather than viewing the supply chain as a zero-sum game of inventory cost minimization and profit maximization, Nordstrom must recognize that spreading the wealth and occasionally taking on more inventory than is optimal for them will result in improved customer service.
The intercompany interfunctional scope of strategic fit requires more effort than the other approaches presented in this section; Nordstrom must evaluate all aspects of their supply web. Reconsider the previous four questions for other companies such as Amazon. Customers place orders online and expect to receive purchases in a number of days.
Customer orders are processed at central warehouses or are drop shipped from suppliers by mail or common carrier.
For the most part, the implied demand uncertainty for Amazon. In every link of the supply chain, Amazon. A supermarket chain focuses on cost and quality, with some specialty chains adding flexibility by carrying a broader range of products that may be targeted towards customers interested in organic products or ethnic cuisine. Implied demand uncertainty for a supermarket chain tends to be low; shoppers are typically repeat customers and have a constant demand level.
The supermarket supply chain must be responsive by receiving produce quickly to ensure freshness and have a high service level. Supermarket supply chains tend to be well- established and can improve strategic fit by emphasizing speed to maintain freshness, hence perceived quality. Auto manufacturers have extremely complicated supply chains that are increasingly focused on flexibility and lean operations.
Implied demand uncertainty for auto manufacturers varies considerably by target market and manufacturer. Automotive supply chains among the big three in the United States have made great progress in the last decade and recognize that they must be responsive from a time and flexibility standpoint. Their supply chain is able to respond quickly to fill a wide 4.
The sole supply chain criticism that surfaces is an occasional report that suppliers feel as if supply chain surplus is not shared equitably. Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. The best argument to support the statement that Wal-Mart has achieved very good strategic fit is their success as a company.
Their marketing strategy of advertising every day low prices appeals to consumers and does not disrupt the supply chain by causing surges in demand. Visiting one of their big box stores reveals low-priced merchandise, both national and store brands, stacked from floor to ceiling without elaborate displays or decoration.
What are some factors that influence implied uncertainty? How does the implied uncertainty differ between an integrated steel mill that measures lead times in months and requires large orders and a steel service center that promises hour lead times and sells orders of any size?
On the supply side we see increased supply uncertainty when the supply source has frequent breakdowns, unpredictable and low yields, poor quality, limited supply capacity, and evolving production processes. For the steel mill that requires large orders and has lead times measured in months both the implied demand and supply uncertainty is less due to a better predictable capability and a better defined schedule for production.
Due to the increasing number of sizes and the shorter response time associated with the steel service center, implied uncertainty is high. What is the difference in implied uncertainty faced by a convenience store chain such as 7-Eleven, a supermarket chain, and a discount retailer such as Costco?
Implied demand uncertainty would be high as customers are looking for a variety of products and convenience versus cost and demand levels are hard to predict. Low price is very important to customers of discount retailers such as Costco.
This customer is willing to tolerate less variety and even purchase very large package sizes as long as the price is low. Customer demand can be more predictable and supply side needs are large and fairly stable. What are some problems that can arise when each stage of a supply chain focuses solely on its own profits when making decisions?
Identify some actions that can help a retailer and a manufacturer work together to expand the scope of strategic fit. High inventories, poor quality, low customer service, increased returns are just a number of problems that occur when each stage of a supply chain focuses solely on its own profits. The trucking company requires full truckloads for delivery forcing the retailer to carry more inventory than wanted or needed.
The supplier offers discounts to their buyers to maximize production but forcing the buyers to purchase in larger quantities than desired. This concept was very prevalent during the s and s as companies to minimize local costs and maximize their own profits.
They can share sales information to determine customer trends. Joint product development opportunities are being explored throughout the supply chain between retailers, manufacturers and raw material suppliers.