SCM 301

Topics: Procurement, Good, Supply chain management terms Pages: 3 (1321 words) Published: September 24, 2014
Johnathan Anthony
Mr. Jang
SCM 301
Part 1 Exam

1.) Anticipatory and response-based business models are the two ways used by firms to fulfill customer requirements. The fundamental difference in the two models is timing. Anticipatory model has been the traditional business practice, which was mainly forecast driven. Since information about purchasing behavior was not available, and the channel partners were collaborating loosely, businesses were driven by forecasts. The forecasts used by the manufacturers, wholesales, distributors, and retailers were often different that led to a lot of excess inventory. All the work was performed in anticipation of future projections, so the likelihood of misgauging customer requirements was high. Each firm in the chain duplicated the anticipatory process. Response-based model aims to reduce or eliminate forecast reliance by joint planning and rapid exchange of information between supply chain partners. This model has been made possible because managers can now obtain and share sales information faster. Customers can be provided with their desired items faster. This requires fewer steps and therefore less cost to complete a fulfillment process compared to the anticipatory model. Response-based model is similar to a build to order model but the former has a faster response time and allows a higher degree of customization. Responsiveness propelled by information technology development has become the cornerstone of today’s supply chain collaboration. Higher responsiveness can not only increase the level of customer satisfaction but can also reduce the overall cost of doing that.

2.) Procurement performance cycles consist of the many activities that maintain the flow of materials, parts, or finished goods into a manufacturing or distribution facility. The scope of procurement activities is limited. Although similar to the customer order processing cycle, shipments are generally larger and cycles often require...
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