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Chapter 1: 21st-Century Supply Chains
Study Questions

1. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding similarities and differences.
Back then, the traditional distribution channels typically had an order time of 15-30 days. If something went wrong, it would unfortunately increase delivery time. The main goal of the traditional model was to ensure availability of products.

2. What specific role does logistics play in supply chain operations?
Logistics is the combination of a firm’s order management, inventory, transportation, warehousing, materials handling, and packaging as integrated throughout a facility network. It also serves to link and synchronize the overall supply chain as a continuous process and is essential for effective supply chain connectivity.

3. Describe and illustrate an integrated service provider. How does the concept of integrated service provider differ from traditional service providers, such as for-hire transportation and warehousing? ISP provides a range of logistics services that includes all work necessary to service customers. With changes in transportation, the traditional logistics services providers started offering warehousing and shared transportation services. Therefore, single function to multifunction outsourcing was created. For example, UPS handles the value-added services and logistics for Nike.

The traditional service providers specialize in specific functions; for example, some carriers specialize in moving products between locations.

4. Compare and contrast anticipatory and response-based business models. Why has responsiveness become popular in supply chain collaborations?
The difference between the two models is timing. The Anticipatory model has been the traditional business practice, which was forecast. Forecast used by distributors, wholesales, etc, often led to excessive inventory. Also, each firm in the chain duplicated

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