1. The document discusses supply chain management and defines a supply chain as all stages involved in fulfilling a customer request, including manufacturers, suppliers, transporters, warehouses, retailers, and customers. 2. It explains that the objective of a supply chain is to maximize overall supply chain value created, which is the final product value minus total supply chain costs. 3. The document outlines the different decision phases in a supply chain: supply chain strategy and design, supply chain planning, and supply chain operations. It notes that strategy and design involve long-term strategic decisions while planning and operations have shorter time horizons.

1. Supply Chain Management 1-

3. What is a Supply Chain? 1- Customer wants detergent and goes to Jewel Jewel Supermarket Jewel or third party DC P&G or other manufacturer Plastic Producer Chemical manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry Chemical manufacturer (e.g. Oil Company)

4. Flows in a Supply Chain 1- Customer Information Product Funds Supply Chain

6. Decision Phases of a Supply Chain 1-

12. Cycle View of Supply Chains 1- Customer Order Cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle Customer Retailer Distributor Manufacturer Supplier

13. Push/Pull View of Supply Chains 1- Procurement, Manufacturing and Replenishment cycles Customer Order Cycle Customer Order Arrives PUSH PROCESSES PULL PROCESSES

15. The Value Chain New Product Development Marketing and Sales Operations Distribution Service Finance, Accounting, Information Technology, Human Resources Business Strategy New Product Strategy Marketing Strategy Supply Chain Strategy

20. Impact of Customer Needs on Implied Demand Uncertainty (Table 2.1) Customer Need Causes implied demand uncertainty to increase because … Range of quantity increases Wider range of quantity implies greater variance in demand Lead time decreases Less time to react to orders Variety of products required increases Demand per product becomes more disaggregated Number of channels increases Total customer demand is now disaggregated over more channels Rate of innovation increases New products tend to have more uncertain demand Required service level increases Firm now has to handle unusual surges in demand

21. Correlation Between Implied Demand Uncertainty and Other Attributes (Table 2.2) Attribute Low Implied Uncertainty High Implied Uncertainty Profit margin Low High Avg. forecast error 10% 40%-100% Avg. stockout rate 1%-2% 10%-40%

24. Achieving Strategic Fit Implied uncertainty spectrum Responsive supply chain Efficient supply chain Certain demand Uncertain demand Responsiveness spectrum Zone of Strategic Fit

26. A Framework for Structuring Drivers 3-