TOPIC 1 SAQ1. Explain the three decision phases (categories) that must be made in a successful supply chain? Three design phases are:
Supply Chain Strategy and Design.
Supply Chain Planning.
Supply Chain Operation.
Supply Chain Strategy and Design –. During this phase, a company decides how to structure the supply chain over the next several years. Involves the allocation of resources and what processes will be undertaken. •
Supply Chain Planning – For decision made during this phase, the time frame considered is a quarter to a year. Look at things like demand forecasting and market identification, inventory size and marketing. •
Supply Chain Operation – The time horizon here is weekly or daily, and during this phase companies make decisions regarding individual customers orders. Deals with day to day operations - set due dates and allocate inventory/production. Set delivery schedules or replenish stock levels. SAQ7.
In what way do supply chain flows affect the success or failure of a firm like Amazon? List two supply chain decisions that have a significant impact on supply chain profitability? Amazon an online website introduced to sell books and other products over the Internet. Amazon started by filling all orders using books purchased from distributor in response to customer orders. So there is no need of an retailer anymore and all customer order and replenishment cycle at Amazon can be classified as pull processes. The operation of Amazon is different from traditional book store, as in a bookstore books are purchased directly from the publisher and are stored in anticipation to customer’s orders. Since Amazon sells books directly from distributor to customer, lots of costs such as transportation fee, loading/unloading fee, hiring people to serve in bookstore and other retailer running fees could...
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