《供应链管理》课后答案

CHAPTERONEUnderstandingtheSupplyChainConsiderthepurchaseofacanofsodaataconveniencestore.Describethevariousstagesinthesupplychainandthedifferentflowsinvolved.Whenacustomerpurchasesacanofsodaataconveniencestore,hispurchaserepresentstheendofasupplychain’sdeliveryofanitemandthebeginningofinformationregardinghispurchaseflowingintheoppositedirection.Thesupplychainstagesincludecustomers,retailers,wholesalers/distributors,manufacturers,andcomponent/rawmaterialsuppliers.Acustomer’spurchasemovesproducttowardsthecustomeranddollarsandinformationtowardstheretailer.Theretailerplacesanorderfromthewholesaler/distributortoreplenishstock,therebymovinginformationbackupthesupplychainwhilemovingproductdownthesupplychain.Astheorderisfilled,theretailerwillmovedollarsbackupthesupplychain.Thewholesaler/distributortransmitsinformationanddollarstothemanufacturerwhoproducesproductandshipsitdownthesupplychaintothewholesaler.Finally(orinitially,dependingonyourperspective)themanufacturermovesorders(information)anddollarstowardssuppliersinexchangeformaterialflowintotheirproductionprocesses.WhyshouldafirmlikeDelltakeintoaccounttotalsupplychainprofitabilitywhenmakingdecisions?Dellrealizesthattheirultimatesuccesslieswiththesuccessoftheirsupplychainanditsabilitytogeneratesupplychainsurplus.IfDellwastoviewsupplychainoperationsasazerosumgame,theywouldlosetheircompetitiveedgeastheirsuppliers’businessesstruggled.Dell’sprofitgainedattheexpenseoftheirsupplychainpartnerswouldbeshortlived.Justasaphysicalchainisonlyasstrongasitsweakestlink,thesupplychaincanbesuccessfulonlyifallmemberscooperateandfocusonaglobaloptimumratherthanmanylocaloptima.WhataresomestrategicplanningandoperationaldecisionsthatmustbemadebyanapparelretailerlikeTheGap?AsTheGapplanssupplychainstrategyitmustfirstconsiderthemarketingfunction’spricingplansinordertostructureasupplychainconsonantwiththeseplans.Strategicconsiderationssuchasthecapacityofeachsupplierandassemblyoperations,sourcingdecisionsandhowlogisticsaretobehandledareallpartofthedesign.Thesupplychainmustalsosettleoncommunicationchannelsandfrequencies.Supplychainplanningtakesthestrategicdecisionsasagivenandseekstoexploitefficienciesinthechaintomaximizesupplychainsurplus.Theentirechainshouldcollaborateinforecastingandplanningproductionastoachieveaglobaloptimum.Theforecastsshouldtakeintoaccountplannedpromotionsandknownseasonalfluctuationsindemand.Theoperationaldecisiontaketheplansasagivenandmakeday-to-daydecisionstoprocesscustomerorders,allocateresourcestocertaincustomers,triggerordersfromsupplychainmembers,anddeliverproduct.Considerthesupplychaininvolvedwhenacustomerpurchasesabookatabookstore.Identifycyclesinthissupplychainandthelocationofthepush/pullboundary.Allsupplychainprocessescanbebrokendownintofourprocesscyclesthatconnectthefivestagesofthesupplychain;thecustomerordercycle,thereplenishmentcycle,themanufacturingcycle,andtheprocurementcycle.Thecustomerordercycleconnectsthecustomerwiththeretailer;thisconnectionismadeasthebook,perhapsSupplyChainManagementbyChopraandMeindl,isselectedandpaidforbythecustomer.Thereplenishmentcycleconnectstheretailerandthedistributorandistriggeredbytheretailer’sneedtofilltheemptyshelfspacewithanothercopyofthistome.Themanufacturingcycleconnectsthedistributorandthemanufacturer.Asdemandforthebookisrealizedanddistributorsemptytheirwarehouses,theysignalthemanufacturertoprintanothermillioncopiestofilltheiremptywarehouses.Finally,theprocurementcycleconnectsthemanufacturerandthesupplier.Themanufacturerrequiresrawmaterialinputsofpaper,ink,etc.,tobegintheassemblyprocessforanotherbatchofSupplyChainManagement.Thepush/pullboundaryexistswheredemandswitchesfromreactive(pull)tospeculative(push)production.Formostbookstoresupplychainsthepush/pullboundaryisbetweenthecustomerordercycleandthereplenishmentcycle.Thecustomerorderpullsthebookfromthebookstoreshelfbuttheinitialproductionofthebookwastriggeredbyabuildorderthatmovedmaterialsalongthesupplychaintotheretailoutlet.ConsiderthesupplychaininvolvedwhenacustomerordersabookfromAmazon.Identifythepush/pullboundaryandtwoprocesseseachinthepushandpullphases.InAmazon’soriginaloperationsdesignthepush/pullboundaryexistedbetwixttheretailer(Amazon)andtheirdistributor.Amazonorderedproductfromthedistributorandthecustomerorderarrived.Today,Amazonhassixwarehouseswhereitstocksaninventoryofitemsitisconfidentthatwillsell.Inthisscenario,thepush/pullboundaryexistsbetweenthecustomerandtheretailer.Processesinthepullphasearetheorderfulfillment,shipping,customerreturns,andcustomerbilling.Processesinthepushphaseareproduction,stockreplenishments,shipping,andpayment.InwhatwaydosupplychainflowsaffectthesuccessorfailureofafirmlikeAmazon?Listtwosupplychaindecisionsthathaveasignificantimpactonsupplychainprofitability.ThesuccessorfailureofacompanylikeAmazonisdecidedbytheeffectivefunctionofitssupplychain.Theflowofproductsfrompublisherstodistributorstocustomersmustberapidandreliableinordertosatisfycustomers.Theflowofinformationbackthroughthesupplychainallowsallmemberstocoordinateefforts.Theflowofmoneyallowsallsupplychainmemberstomaintainoperations.Supplychainprofitabilityisinfluencedbysourcing,promotion,andfulfillmentdecisions.CHAPTERTWOSupplyChainPerformance:AchievingStrategicFitandScopeHowwouldyoucharacterizethecompetitivestrategyofahigh-enddepartmentstorechainsuchasNordstrom?WhatarethekeycustomerneedsthatNordstromaimstofill?TheNordstromwebsitestatesthefollowing.Overtheyears,theNordstromfamilyofemployeesbuiltathrivingbusinessontheprinciplesofquality,value,selection,andservice.Today,Nordstromisoneofthenation’sleadingfashionretailers,offeringawidevarietyofhigh-qualityapparel,shoes,andaccessoriesformen,women,andchildrenatstoresacrossthecountry.Weremaincommittedtothesimpleideaourcompanywasfoundedon,earningthetrustofourcustomersoneatatime.Nordstromfillscustomerneedsforhighqualityfashionmerchandiseandoutstandinglevelsofcustomerservice.PriceisnoobjectforthetypicalNordstromshopper.WherewouldyouplacethedemandfacedbyNordstromontheimplieddemanduncertaintyspectrum?Why?Implieddemanduncertaintyisdemanduncertaintyduetotheportionofdemandthatthesupplychainistargeting,nottheentiredemand.Ahigh-enddepartmentstorechainsuchasNordstromfallsonthehighendoftheimplieddemanduncertaintyscale.ThefashionitemsthatNordstromstockshaveextremelyhighproductmargin,highforecasterrorsandstockoutrates,andoncetheseasonisover,theseitemsaresoldatdeepdiscountsattheirNordstromRackoutletstores.WhatlevelofresponsivenesswouldbemostappropriateforNordstrom’ssupplychain?Whatshouldthesupplychainbeabletodoparticularlywell?Supplychainresponsivenesstakesmanyforms,includingtheabilitytorespondtoawiderangeofquantities,meetshortleadtimes,handlealargevarietyofproducts,buildinnovativeproducts,meetahighservicelevel,andhandlesupplyuncertainty.TheNordstromsupplychainmustbehighlyresponsiveintheareasofhandlinghighlyinnovativefashionproducts,customerresponse,andservicelevel;theyareeffectiveinsupplyingwell-heeledcustomerswithmerchandiseandtheirreturnpolicyislegendaryinthePacificNorthwest.HowcanNordstromexpandthescopeofthestrategicfitacrossthesupplychain?Scopeofstrategicfitreferstothefunctionswithinthefirmandstagesacrossthesupplychainthatdeviseanintegratedstrategywithasharedobjective.Byadoptinganintercompanyinterfunctionalscopestrategy,Nordstromwillmaximizesupplychainsurplus.NordstromcanmoveinthisdirectionbyworkingwiththeirsuppliersasiftheyareactuallyownedbyNordstrom.Ratherthanviewingthesupplychainasazero-sumgameofinventorycostminimizationandprofitmaximization,Nordstrommustrecognizethatspreadingthewealthandoccasionallytakingonmoreinventorythanisoptimalforthemwillresultinimprovedcustomerservice.Theintercompanyinterfunctionalscopeofstrategicfitrequiresmoreeffortthantheotherapproachespresentedinthissection;Nordstrommustevaluateallaspectsoftheirsupplyweb.ReconsiderthepreviousfourquestionsforothercompaniessuchasAmazon,asupermarketchain,andautomanufacturer,andadiscountretailersuchasWal-Mart.Amazonfocusesoncostandflexibilitybyprovidingbooks,musicandahostofotherhouseholdproductsatlowprices.Customersplaceordersonlineandexpecttoreceivepurchasesinanumberofdays.Customerordersareprocessedatcentralwarehousesoraredropshippedfromsuppliersbymailorcommoncarrier.Forthemostpart,theimplieddemanduncertaintyforAmazonislowastheycastsuchawidenet.Amazon’ssupplychainmustberesponsiveintermsofflexibility;theyhandleanincrediblydiverserangeofproducts.Amazonssupplychainshouldbeabletoprovidelowpriceswidevarietyandreasonabledeliveryschedulesforitscustomers.Ineverylinkofthesupplychain,Amazonmustfunctiononthecost-responsivenessefficientfrontierinordertosupportitscompetitivestrategy.Asupermarketchainfocusesoncostandquality,withsomespecialtychainsaddingflexibilitybycarryingabroaderrangeofproductsthatmaybetargetedtowardscustomersinterestedinorganicproductsorethniccuisine.Implieddemanduncertaintyforasupermarketchaintendstobelow;shoppersaretypicallyrepeatcustomersandhaveaconstantdemandlevel.Thesupermarketsupplychainmustberesponsivebyreceivingproducequicklytoensurefreshnessandhaveahighservicelevel.Supermarketsupplychainstendtobewell-establishedandcanimprovestrategicfitbyemphasizingspeedtomaintainfreshness,henceperceivedquality.Automanufacturershaveextremelycomplicatedsupplychainsthatareincreasinglyfocusedonflexibilityandleanoperations.Implieddemanduncertaintyforautomanufacturersvariesconsiderablybytargetmarketandmanufacturer.AutomotivesupplychainsamongthebigthreeintheUnitedStateshavemadegreatprogressinthelastdecadeandrecognizethattheymustberesponsivefromatimeandflexibilitystandpoint.Wal-Mart’ssupplychainisobsessedwithcostandisfacilitatedbyalowimplieddemanduncertainty,theirimpressivelogisticssystemandtheirmanagementinformationsystems.TheirsupplychainisabletorespondquicklytofillawidevarietyofproductstokeepmerchandiseonWal-Mart’sshelves.Wal-Mart’slevelofcoordinationalongthesupplychainisexcellent;itwouldbedifficulttopointoutareaswheretrueintercompanyinterfunctionalscopeofstrategicfithasnotbeenachieved.Thesolesupplychaincriticismthatsurfacesisanoccasionalreportthatsuppliersfeelasifsupplychainsurplusisnotsharedequitably.GiveargumentstosupportthestatementthatWal-Marthasachievedverygoodstrategicfitbetweenitscompetitiveandsupplychainstrategies.ThebestargumenttosupportthestatementthatWal-Marthasachievedverygoodstrategicfitistheirsuccessasacompany.Competitiontodayissupplychainversussupplychain,notcompanyversuscompany,soacompany’spartnersinthesupplychainoftendeterminethecompany’ssuccess.Wal-Mart’sstrategicfocusoncostisevidentintheircompetitive,productdevelopment,supplychain,andmarketingstrategy.Theirmarketingstrategyofadvertisingeverydaylowpricesappealstoconsumersanddoesnotdisruptthesupplychainbycausingsurgesindemand.Visitingoneoftheirbigboxstoresrevealslow-pricedmerchandise,bothnationalandstorebrands,stackedfromfloortoceilingwithoutelaboratedisplaysordecoration.Wal-Mart’slogisticsandinformationsystemsarefamousforcoordinatingtheirentiresupplychainandallowingittomeetcustomerneedsatminimalcost.CHAPTERTHREESupplyChainDriversandMetricsHowcouldagrocerystoreuseinventorytoincreasetheresponsivenessofthecompany’ssupplychain?Thelogisticaldriverofinventoryencompassesallrawmaterials,workinprocess,andfinishedgoodswithinasupplychain.AgrocerystorecanbemoreresponsiveintheeyesofitscustomersifitoffersabroadervarietyofSKUsand/ormaintainsagreaterquantityofeachSKU.AgreaterquantityofeachSKUisproblematicforhighlyperishableitemslikeproduce,meat,fish,etc.Fortheseitems,agrocerystoresupplychainshouldbesetuptopermitfrequentorderssothatfreshnessisensuredandastockoutsituationwon’texistforasignificantlengthoftime.Agrocerystoresupplychainshouldusehistoricaldemandpatternsforseasonalitemstorelievestressonallmembersandprovidecustomerswithproductduringpeakdemandperiods.Howcouldanautomanufacturerusetransportationtoincreasetheefficiencyofitssupplychain?Transportation,alogisticaldriver,entailsmovinginventoryfrompointtopointinthesupplychain.Thetrade-offintransportationisbetweenthecostoftransportationandthespeedatwhichproductistransported.Slowermodesoftransportationreducecost,butcouldbeareasonableapproachifsuppliersareco-locatedwiththeassemblyoperations.Ifthesupplychainisdesignedinsuchaway,andassemblyoperationsarelocatedwithproximitytomarkets,thenthesupplychaincanberuncheaplywithoutholdingtoomuchinventoryintransit.Howcouldbicyclemanufacturerincreaseresponsivenessthroughitsfacilities?Facilities,anotherlogisticaldriver,aretheactualphysicallocationsinthesupplychainnetworkwhereproductisstored,assembled,orfabricated.Afacilitythatisdesignedtobeflexiblecanrespondquicklytomarketdemandsbyretoolingtoproducedifferentmodelsorproducts,whereasadedicatedfacilitycannot.Locatingafacilityclosetothemarketwillincreaseresponsivenessatthecostofdecreasedeconomiesofscalethatmightbeachievedwithacentralizedlocation.Afacilitythatisundercapacitywillbelessresponsivethanafacilitythatisappropriatelysizedorhasexcesscapacity.Howcouldindustrialsuppliesdistributoruseinformationtoincreaseitsresponsiveness?Informationisacross-functionaldriverandconsistsofdataandanalysisconcerningfacilities,inventory,transportation,costs,prices,andcustomersthroughoutthesupplychain.Informationservesasaconnectionamongallmembersofthesupplychainandoperateswithineachmembertofacilitateinternaloperations.Accurateinformationcanimproveresponsivenessbyhelpinganindustrialsupplierbettermatchsupplyanddemand.Informationthatisgatheredfartherdownthesupplychaincanbetransmittedinstantaneouslyandaccuratelytothesuppliesdistributor.InsteadofwaitingforahumantocallorFAXanorder,thedistributorcanreplenishinventorytothenecessarylevelsorprovidewhatisneededtofilltheorderasitisrealized.Motorolahasgonefrommanufacturingallitscellphonesin-housetoalmostcompletelyoutsourcingthemanufacturing.Whataretheprosandconsofthetwoapproaches?Sourcingisthesetofbusinessprocessesrequiredtopurchasefoodsandservices.ThesedecisionsarecrucialbecausetheyaffectthelevelofefficiencyandresponsivenessthatMotorolacanachieve.TheMotorolaproductionsystemfortheirlineofpagerswashailedasabreakthroughinmasscustomization,soitwassomewhatsurprisingwhenMotorolaoutsourcedcellphones..Sourcingdecisionsshouldbemadebasedonthetotalsupplychainsurplus;ifathirdpartycanhelpthechainachievegreatersurplus,thenthefunctionisaprimecandidateforoutsourcing.Motorolawaswillingtogiveupsomecontrolandpossiblysomeofitsdesigntalentandassemblyexpertisebecauseitfeltthatthesuppliercouldprovideproductofanappropriatelevelofqualitywiththeresponsivenessnecessary.Productsandservicesthatareoutsourcedarerarelybroughtbackin-houseandshouldneverbetiedtoocloselytotheoutsourcingparty’scorecompetency.HowcanahomedeliverycompanylikePeapodusepricingofitsdeliveryservicestoimproveitsprofitability?Pricingistheprocessbywhichafirmdecideshowmuchtochargecustomersforitsgoodsandservices.Pricingaffectsthecustomersegmentsthatchoosetobuytheproductaswellasthecustomer’sexpectations.Peapodcanuseeverydaylowpricingofitsproductstoensurestabilityinthesupplychain,butcaninfluencedemandbyvaryingthedeliverycharges.Forexample,byestablishingaminimumorderamountof$50andcharging$10todeliveranorderunder$75,Peapodprovidesanincentiveforacustomertopileonadditionalitemstosaveonperunitshipping.Anorderover$100incursadeliveryfeeof$7,whichisthelowestdeliverychargeforaresidentialcustomer.Peapodalsovariesdeliverychargesbytimeofday;eveningdeliverytimesonweekdaysandmorningdeliveriesonSundaywithinnarrowwindowscostanextradollar,widerdeliverywindowsare$1less.ThedeliverylatitudeallowsPeapod’sdeliverydriverstoschedulemoreefficientlytherebyincreasingprofitability.Howhasglobalizationmadestrategicfitevenmoreimportanttoacompany’ssuccess?Thekeytoachievingstrategicfitisacompany’sabilitytofindabalancebetweenresponsivenessandefficiencythatbestmatchestheneedsofitstargetmarket.Supplychainstodayaremorelikelythanevertobeglobal,whichincreasesthedifficultyofcoordinationbutopensupamuchbroaderselectionofpotentialsupplychainmembers.Thisglobalizationalsoresultsinincreasedcompetitionfromothersupplychainsthatwerenotaconcernadecadeago.Thisincreasedcompetitionamongsupplychainsbenefitsconsumers,butincreasesthepressureoneachsupplychaintocarefullyselectmembersthatbestfittheoverallstrategy.Whataresomeindustriesinwhichproductshaveproliferatedandlifecycleshaveshortened?Howhavethesupplychainsintheseindustriesadapted?Theauthorscitetheexampleofrunningshoesincreasingfromfivestylesintheearly70stoalmost300bythelate90s.Otherproductsthathaveseenanexplosioninvarietyincludepersonalelectronics,beverages,snackandpreparedfoods,entertainment,tires,andpersonalservices.Supplychainshaveleveragedinformationsystems,recognizedtheneedtocollaborateonproductandprocessdesign,andsupplychainexecution.Thesupplychainstancehasshiftedtowardsapartnershiporientationfromafocusonpricenegotiations.Howcanthefullsetoflogisticalandcross-functionaldriversbeusedtocreatestrategicfitforaPCmanufacturertargetingbothtimesensitiveandpriceconsciouscustomers?Thelogisticaldrivers,facilities,inventory,andtransportation,andthecross-functionaldrivers,information,sourcing,andpricing,mustbeusedinconcerttoachievetheappropriatebalanceofefficiencyandresponsivenessforthesupplychaintobesuccessful.APCmanufacturerthatwantstodeliverproductbothquicklyandefficientlycanmakecostandtimetrade-offsamongthesedriverstoachievetheirgoals.Thesetradeoffsacrossdriversaffordmoreflexibilitybutrequireconstantvigilanceasthetrade-offswithineachdriverchange.Inaddition,somedriversmaybealteredmoreeasily,e.g.,orderquantityandtransportationmedia,thanotherdrivers,e.g.,locationandsourcing.Thetrade-offswithineachdriveraresummarizedinthetable:DriverMoreResponsiveMoreEfficientFacilitiesMultiplePlantsFlexiblePlantsSinglePlantDedicatedPlantInventoryHigherInventoryLowerInventoryTransportationHigherSpeedLowerSpeedInformationAccurateRealTimeTransmissionLessAccurateBatchedTransmissionSourcingResponsivesupplierEfficientsupplierPricingDifferentialPricingEverydayLowPricingCHAPTERFOURDesigningDistributionNetworksandApplicationstoOnlineSalesWhatdifferencesintheretailenvironmentmayjustifythefactthatthefast-movingconsumergoodssupplychaininIndiahasfarmoredistributorsthanintheUnitedStates?Indiaisalandofshopkeeperssellingtooverabillionconsumers.IndiaisbecominglyincreasinglyWesternized,butitwillbequiteawhile(ifnotforever)beforeshopkeepersaresupplantedbylargeretailers.Thesheervolumeofsmallstoreownersrequiresalargenumberofdistributorstoservicethem.TheyoungergenerationinIndia,particularlytheITrichareasofBangaloreandChennai,havefarhigherdisposableincomethantheoldergenerationandtherestofthecountry.TheseyoungworkershaveverydifferentretailhabitsandarecausingchangesinIndia’sshoppingandsupplychainneeds.Poorinfrastructure,althoughnotentirelyaretailconcern,isanotherreasonwhyIndiamayneedfarmoredistributorsthanintheU.S.AspecialtychemicalcompanyisconsideringexpandingitsoperationsintoBrazil,wherefivecompaniesdominatetheconsumptionofspecialtychemicals.Whatsortofdistributionnetworkshouldthiscompanyutilize?IftheexpansionintoBrazilismerelyasalesoperation,thendistributorstoragewithlastmiledeliveryisthebestnetworkdesign.Iftheexpandedoperationsincludemanufacturingcapabilities,thenmanufacturerstoragewithdirectshippingisastrongpossibility.Giventhenatureoftheproduct,packagecarrierdeliveryisnotanoptionandretailstoragewithcustomerpickupisoutofthequestionsincethisisaB2Bscenario.In-transitmergewouldbeanoptiononlyifthemanufacturerestablishedanetworkofplantsinBrazil,perhapsfocusedfactoriesrelativelyclosetoeachcustomer.Thechemicalcompanyhasonlyfivecustomerstoserve;itwouldnotrequiretoolargeaninvestmentinlogisticalinfrastructuretoeffectivelyserveallfivewithoutinterventionbyadistributor.TheirshortsupplychainwouldbeeasiertocoordinateduetothestabledemandsandinformationsharingthatispossibleinaB2Bscenario.Adistributorhasheardthatoneofthemajormanufacturersfromwhichitbuysisconsideringgoingdirecttotheconsumer.Whatcanthedistributordoaboutthis?Whatadvantagescanitofferthemanufacturerthatthemanufacturerisunlikelytobeabletoreproduce?Thetwosupplynetworkdesignsthatthedistributorcanproposetocounterthemanufacturer’sproposalarethedistributorstoragewithpackagecarrierdeliveryandthedistributorstoragewithlastmiledelivery.Bothofthesecounter-