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1、Chapter 01 - 21st-Century Supply ChainsChapter 1: 21st-Century Supply ChainsStudy Questions1. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding similarities and differences.Traditional distribution channels typically had an order fulfillm
2、ent time of 15-30 days. But if something went wrong, this time would increase dramatically. It was a common practice to maintain inventory at every stage of the supply chain like retailers, wholesalers, and manufacturers. The market was characterized by scarcity to the primary goal of traditional mo
3、del was to ensure availability of products. However, today customers want more options in product offerings. Modern supply chain is geared towards meeting the changing consumer needs. Transportation capacity and operational performance has become more reliable and economical. Logistical systems are
4、capable of capable of delivering products at exact times. So customer orders can be fulfilled faster. With massive development in information technology, the need to maintain inventory has reduced dramatically. The occurrence of failures, characteristic of traditional supply chain, has been replaced
5、 by a commitment towards zero-defect of six sigma performance. In essence a high level of performance is achieved at a lower total cost with commitment of fewer financial resources than that in the past. 2. What specific role does logistics play in supply chain operations?Logistics is the primary co
6、nduit of product and service flow within a supply chain arrangement. It is the work required to move and to position inventory throughout a supply chain. It is a combination of order management, inventory, transportation, warehousing, material handling and packaging as integrated throughout a facili
7、ty network. Logistics 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?Integrated Service Prov
8、iders (ISP) also known as third-party logistics providers provide a range of logistics services that includes all work necessary to service customers. With the regulatory changes in the transportation the traditional logistics services providers started offering warehousing and shared transportation
9、 services. Therefore the ISPs initiated the radical shift from single function to multifunction outsourcing. Their services include order entry to product delivery and in certain situations they also provide wide range of value-added services. For example United Parcel Services (UPS) stocks Nike sho
10、es and warm-ups at its Louisville warehouse and processes orders hourly. All the related communication and financial administration are handled by an UPS call center in San Antonio. Therefore UPS handles the basic logistics and value-added services for Nike.In contrast the traditional service provid
11、ers, such as for-hire transportation and warehousing specialize in specific functions. For instance, the for-hire transportation industry consists of carriers who specialize in moving products between geographic locations. The companies offering warehouse services are traditionally called public war
12、ehouses and they provide storage supplemented by specialized services. 4. Compare and contrast anticipatory and response-based business models. Why has responsiveness become popular in supply chain collaborations? Anticipatory and response-based business models are the two ways used by firms to fulf
13、ill customer requirements. However 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 readily available, and the channel partners were loosely coll
14、aborating, businesses were driven by forecasts. However the forecasts used by the manufacturers, wholesales, distributors, and retailers were often different that led to a lot of excess inventory in the system. All the work was performed in anticipation of future projections, so the likelihood of mi
15、sgauging customer requirements was very high. In addition 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 possibl
16、e because managers can now obtain and share accurate sales information faster. Consequently customers can be provided with their desired items faster. This model 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 however the former has a faster response time and allows higher degree of customization.Responsiveness propelled by informati
