Designing and Managing the Supply Chain, Chapter 1 Questions
PROC 5850
Week 1 Homework: Ch1 Question 1,2,6
1. Consider the supply chain for a domestic automobile. a. What are the components of the supply chain for an automobile?
The components of the supply chain for an automobile are as follows: First you have the supplying industries. These include components such as steel and other metals, rubber, electronics, plastic, glass, and textiles. These raw components are fabricated into car bodies, mechanical and electrical subcomponents as well as engines and transmissions. These subassemblies are assembled during final assembly and then distributed to dealership for the consumer market. b. What are the different firms involved in the supply chain?
The following are a selection of firms involved in the supply chain: Suppliers, Manufactures, Transportation companies, Warehouses and distributions centers, sub-contractors, dealerships, and customers.
c. What are the objectives of these firms?
The simple objective of these firms is to maximize market share and make a profit. Every challenge to operate the supply chain supports these two primary goals.
d. Provide examples of conflicting objectives in this supply chain?
The supplying industries would like the automobile manufacture to commit themselves to purchasing large quantities with stable volumes with flexible (long-lead) dates. On the manufacture’s side, they need to be flexible to their customers’ need and the change in demands. So what we have is a direct conflict of interest between the suppliers’ and manufactures’ desire for flexibility. The ability to optimally match supply and demand is just as much an art and it is a science. Other conflicts arise with transportation of smaller batches versus larger batches of supplies. Usually the smaller and faster a batch of supply is required, the cost of transportation increase; another conflicting objective.
e. What are the risks that rare or unexpected
Week 1 Homework: Ch1 Question 1,2,6
1. Consider the supply chain for a domestic automobile. a. What are the components of the supply chain for an automobile?
The components of the supply chain for an automobile are as follows: First you have the supplying industries. These include components such as steel and other metals, rubber, electronics, plastic, glass, and textiles. These raw components are fabricated into car bodies, mechanical and electrical subcomponents as well as engines and transmissions. These subassemblies are assembled during final assembly and then distributed to dealership for the consumer market. b. What are the different firms involved in the supply chain?
The following are a selection of firms involved in the supply chain: Suppliers, Manufactures, Transportation companies, Warehouses and distributions centers, sub-contractors, dealerships, and customers.
c. What are the objectives of these firms?
The simple objective of these firms is to maximize market share and make a profit. Every challenge to operate the supply chain supports these two primary goals.
d. Provide examples of conflicting objectives in this supply chain?
The supplying industries would like the automobile manufacture to commit themselves to purchasing large quantities with stable volumes with flexible (long-lead) dates. On the manufacture’s side, they need to be flexible to their customers’ need and the change in demands. So what we have is a direct conflict of interest between the suppliers’ and manufactures’ desire for flexibility. The ability to optimally match supply and demand is just as much an art and it is a science. Other conflicts arise with transportation of smaller batches versus larger batches of supplies. Usually the smaller and faster a batch of supply is required, the cost of transportation increase; another conflicting objective.
e. What are the risks that rare or unexpected