Exam 3 - Global SCM

Technology & Supply Chain Risk Mgmt (SCRM): Information sharing can help mange risks in three ways: 1. It helps i___ possible v___ along the supply chain, thus informing the decision of r___ m___ p___ 2. It helps p___ the o___ of events that could become r___ if no action is taken 3. It enables r___ i___ of risk mgmt m___, minimizing the risk of d___

identity; vulnerabilities; risk mgmt plans; prevent; occurrence; risks; rapid implementation; measures; disruptions

Effective information visibility is facilitated by: (1) i___ t___, and (2) integrated & collaborative r___ btwn supply chain partners. • Without i___ information systems & c___, as opposed to competitive, relationships, information will not be shared effectively & efficiently

information technologies; relationships; integrated; collaborative

SCM Can Benefit From IoT Technologies: • loT can help increase i___ btwn supply chain & i___ operations, thus creating a s___ t___ system • To store the data, a number of platforms have emerged, creating a new business segment → the I___ p___ m___ • With IoT, objects increase visibility throughout the supply chain by generating real-time info on the different supply chain processes • They can enhance product e___-t___-e___ t___, including quality control • The big data produced by IoT can be processed to predict changes in consumer p___ & avoid the adverse effects of poor predictability, as well as inform probability‐based r___ a___, early warning systems & simulation models

integration; infrastructure; seamless transport; loT platform market; visibility; end‐to‐end traceability; preferences; risk assessments

Changing Times & an Uncertain World: • Alongside this, the i___ e___ of supply chains generates greater complexity & makes them more susceptible to changing conditions in the business climate in each country that they operate in • In this context, risk management - defined as the ability to f___ & e___ r___, and thereafter identify the a___ necessary to a___ them or m___ their i___ - has become critical for supply chain managers

international expansion; foresee; evaluate risks; actions; avoid; minimize; impact;

MS Applications in Transport, Logistics, & SCM: • Optimization - Improving k___ p___ m___ in a supply chain (e.g. getting the lowest possible delivery cost within certain constraints, like timeframe) • Simulation - Seeing how a logistics s___ p___ o___ t___ (e.g. you may have a network of trucks making regular deliveries, a simulation would illustrate to what extent irregular and/or random events may affect your schedule)

key performance metrics; system performs over time;

• In a complex inter‐organizational supply chain, it may be difficult, if not impossible for anyone to identify every possible hazard or point of vulnerability. • You must remember that 'known' problems are only part of the picture. There are: 1. K___ unknowns 2. K___ unknowns 3. U___ unknowns 4. C___ c___

known; knowable; unknowable; creeping crises

Technologies to Mitigate Security Risks: Various initiatives have been introduced & technologies employed to mitigate security risks, for ex: • A___ c___ systems. Some may use biometric technologies (i.e. scanning your passport or eye retina) • T___ & t___ systems • D___ systems (e.g. using drones, cameras, or movement sensors) Various transport security initiatives have also been developed by govt's & other bodies, for ex: • The International Maritime Organization's I___ S___ & P___ S___ (ISPS) code • US initiative's: C___ T___ P___ A___ T___ (CTPAT), C___ S___ I___ (CSI) & A___ C___ A___ S___ (ACAS). • The European Union A___ E___ O___ (AEO) • ISO 28000: Supply chain security

Access control; tracking; tracing; detection; international ship; port; security; Customs Trade Partnership Against Terrorism; Container Security Initiative; Air Cargo Advance Screening; Authorized Economic Operator;

Benefits of Addressing Barriers to Information Visibility: • C___‐oriented operations • T___ compression • Reduced schedule v___ • Shorter p___ periods • Consistent p___ • Supply chain s___ & c___ • A single p___ o__ c___ • I___ information systems • C___ R___ M___ (CRM)

Customer; Time; variability; planning; partnerships; synchronization; coordination; point of control; Integrated; Customer relationship management

VUCA - This acronym emerged in the military in the 1990s & has since served as a way to help people & organizations deal with risk & uncertainty: • From V___ to V___ • From U___ to U___ • From C___ to C___ • From A___ to A___

Volatility; vision; Uncertainty; understanding; Complexity; clarity; Ambiguity; agility

____ will have the impact on supply chains that steam and electricity had on manufacturing

Digitization

3 Data Flows in the supply chain: 1. M___ flows 2. D___ flows 3. R___ flows

Material; data; resource

Supply Chain loT Architecture: Below bullets are showing the supply chain Iot layers from the BOTTOM up • S__ layer - Wifi & Zigbee; pic shows automated arm, delivery truck, shipping box ↓ • G__ layer - Local Area Network (LAN) & Wide Area Network (WAN); pic shows little wifi sensor things connecting to the RFID tags in the above mentioned trunk, box, & arm ↓ • M__ S__ layer - Security mgmt, device mgmt, information analytics; pic shows storage space (cloud) & process information (like that giant computer room at my work) ↓ • A__ layer - Performance mgmt, quality mgmt, process monitoring & control; pic shows planning & tracking

Sensing; gateway; management service; application

System Characteristics: • S__ models - have at least ____ random input variable • D__ models - have ___ random input variables • S__ models - do not include the passage of time • D__ models - include the passage of time

Stochastic; one; Deterministic; no; Static; dynamic

Negative Impacts of Supply Chain Risks: • S___ failure, natural d___, p___ & r___ uncertainty, failure in logistical p___, damage to product q___, & d___ in customs procedures among the most serious risk factors faced by a supply chain • Systematic Risks - Earthquake in Japan (2011) → consequences spread out on a g___ level, affecting hundreds of companies • Operational Risks - Whirlpool outsourced production of dishwashers & this led to a defect causing a 10% failure rate. This quality failure cost the company millions (way more than they saved from outsourcing)

Supply; disaster; political; regulatory; processes; quality; delay; global

Five Categories of Supply Chain Risks: 1. S___ 2. M___ 3. O___ 4. C___ 5. L___ risks

Systematic; market; operational; credit; liquidity

Sources of External Shocks to the Supply Chain: • W___ & other extreme events (e.g., the 2011 earthquake in Japan) • P___, blockades, strikes (e.g., the strikes at LA ports in 2011) • S___ of key supplies • T___ & other security threats such as piracy & kidnapping • Corporate accounting scandals, f___ • B___-t___ - (e.g., the foot & mouth livestock crisis in the UK; the COVID-19 virus) • Actions by upstream suppliers tarnishing the consignee's image (e.g., the collapse of a garment factory in Bangladesh) • U___ caused by shifts in t___ (e.g., the MP3 players and cell phones discussed earlier)

Weather; protests; shortages; terrorism; fraud; bio-threats; image; uncertainty; technology

Changing Times & an Uncertain World: • T___ such as o___, offshoring, j__‐i__‐t__ production & consumer‐driven production have increased c___ in supply chains &, consequently, the u___ & higher probability of r___ occurrences This is the result of: 1. The levels of i___ & i___ between enterprises that are ____ than they were previously 2. The fact that the c___ of a business no longer depends on i___, but on all the other firms with which it is connected within a supply chain

Trends; outsourcing; just-in-time; complexity; uncertainty; risk; interconnection; interdependence; greater; competitiveness; itself

Model Outputs: Once the model is complete, you should 'sense check' your solutions: • V__ - How true are the results? • R__ - If you repeat the analysis, will you get the same results? If not, is that bc your model is not correctly formulated or is the variability in the results an underlying feature of the scenario you are modeling? • You may suggest that the process be reengineered completely → rather than make marginal changes, you may need to use b__ p__ r__ which is the fundamental rethinking & radical redesign of business processes to achieve dramatic improvements

Validity; Reliability; business process reengineering

Blockchain Technology: • Since blockchain uses cryptography to guarantee the info stored in the distributed ledger, it makes it virtually impossible to a___ the info already stored without having the consensus of the nodes in the network. • This is an important feature to avoid f___ & f___ in the information shared. • The decentralized feature of blockchain eliminates the need for third parties to validate the information shared, which in turn reduces transaction c___ & increases t___

alter; forgery; fraud; costs; transparency

Optimization: • Optimization techniques can be used to a___ & help i___ key p___ m___ in a logistics system or SC • These techniques help us to best a___ r___ to various (often competing) activities in order to best meet organizational objectives • The output is typically to find the best m___ o__ a___ - which ones to pursue & at what levels This may mean that certain compromises are necessary in order to optimize, for example: • Say you want to find the lowest possible delivery cost for your prods, you may not actually end up using the cheapest mode bc it may be too slow. Thus, the optimum solution could be a slightly more expensive, but faster transport mode that results in the lowest possible total costs (delivery & opportunity costs) • Optimization techniques are widely used in t___

analyze; improve; performance metrics; allocate resources; mix of activities; transport

Distinguishing between "data" & "information" as these terms are often used interchangeably: • Data can be r___, r___, d___. And when processed, organized, & structured, it becomes u___ i___

raw; random; disorganized; useful information

Artificial Intelligence: • Using AI to predict demand is increasingly being used as a means to avoid the bullwhip effect, reduce inventory handling, & increase customer satisfaction. • For ex: companies are using AI to analyze custs' preferences & predict what products they'll buy on their platforms. Based on these estimations, prods are sent closer to consumers' location even before they place their orders, so that the products can be delivered faster, while customer satisfaction is increased. This is known as a__ s__

anticipatory shipping

Artificial Intelligence: • Often used interchangeably with the term AI, machine learning is an a___ of AI that provides systems with the ability to a___ l___ & i___ from e___ without being explicitly p___ • Machine learning is at the heart of chatbots, for ex, which are increasingly being deployed in SCM for improved customer service

application; automatically learn; improve; experience; programmed;

Simulation is the process of b___ a m___ and e___ with it in order to develop insight into a s___ b___ based on a specific set of i___ and assist in d___-m___ processes. It is particularly useful for: • If there are process p___ or b___, you could use it to experiment and see what would be the impact of process changes • Testing the behavior/output/impact of major process or system c___ • Comparing alternative process d___ • Simulation is useful for assessing how a logistics system p___ over time • The output of a simulation will help us to make d___ around s___ d___

building; model; experimenting; systems behavior; inputs; decision-making; problems; bottlenecks; changes; designs; performs; decisions; system design

Technology & Supply Chain Risk Mgmt (SCRM): • A common supply risk that can be reduced by increasing information sharing is the 'b___ e___' which occurs when info about the final customer's demand becomes increasingly distorted as it moves upstream in the SC • Sharing information with supply chain partners can improve the accuracy of information on demand & demand forecasting

bullwhip effect

The Fourth Industrial Revolution: The breakthroughs that characterize the 4th Industrial Revolution are... • The ability to c___ & a___ massive amounts of d___ in an a___ way, then use this data for d___‐m___ & implement decisions in real time. • New technologies such as the I___ o__ t___ (IoT), a___ i___ & b___ are already bringing important benefits for supply chain visibility & mgmt

collect; analyze; data; automated; decision-making; internet of things; artificial intelligence; blockchain

Contemporary supply chains are information intensive: • Information c___, p___, d___, v___ & a___ are key drivers of developing increasingly sophisticated supply chain information technologies • D___ m___ & s___ are critical functions necessary to ensure the timely & accurate transmission & retrieval of a vast array of product & process data at any given time

complexity; proliferation; diffusion; velocity; accuracy; Data management; synchronization

Blockchain Technology: • An emerging technology that promises large benefits for SC risk management • In terms of trade facilitation, it helps c___ & s___ info in an i___, u___, & transparent fashion (without the need to set up costly centralized info‐sharing systems) • It decreases the need for t___‐p___ intervention & reduces the number of d___ that have to be shared • By using distributed ledger technology, all the info shared in the network is stored in each node, making it easier to a___ & t___ transaction history. • Any change to the info stored in the distributed ledger must be approved in consensus by all the nodes in the network. • Once the change is approved, the info is immediately stored in each node. This makes the system more resilient to failure or targeted attacks.

create; share; immediate; unalterable; third-party; documents; access; trace;

Barriers to Gaining Information Visibility & Transparency: • C___ • F___ • T___ • O___ • All four should be addressed to gain business benefits from supply chain spanning information technologies

cultural; financial; technical; organizational

• Credit Risks are the risk that c___, s___, or p___ fail to meet their financial o___, leading to bad d___ or supply chain d___ • Liquidity Risks are the risk that a company cannot meet its s___ financial obligations, even if it has assets — typically due to poor cash flow or lack of access to financing.

customers; suppliers; partners; obligations; debt; disruption; short-term (think of it like this: credit risks are the risk that someone won't pay you back what they owe; liquidity risks are the risk that you can't access cash when you need it, even if you have valuable assets)

MS Applications in Transport, Logistics, & SCM: • Decision-Making & Forecasting - Logistics managers are always making d___ (some routine & some more strategic) and various MS t___ are available to help with such decision‐making. It's obv impossible to predict the future, but you can look at what-if's • Inventory Models - key c___ in inventory mgmt & the various t___ that can be employed to analyze & operationalize inventory systems • Other Applications - ex areas: queueing models (e.g. how many truck bays or ships do we need), indices, key issues on how indices are formulated, what data is used, & investment appraisal approaches

decisions; tools; concerns; tools

3 Data Flows in the supply chain: 1. Material flows - enable the d___ of f___ 2. Data flows - are more c___ & multi-faceted. Data is the key that unlocks supply chain r___ to d___ 3. Resource flows - resource flows (i.e. finance) ensure that partners get p___

delivery; freight; complex; responsiveness; demand; paid

Artificial Intelligence (AI) - is the theory & d___ of computer systems able to p___ t___ normally requiring human intelligence, such as visual perception, speech recognition, decision‐making, & t___ between l___' • In the near future, a variety of AI algorithms will be used to (1) continuously m___ supply chain p___ by analyzing quintillion bytes of data generated by objects, (2) forecast & identify r___, (3) p___ the f____ with minimum error & take actions to address any deviation from expected performance

development; computer systems; perform tasks; translation; languages; monitor; performance; risks; predict; future;

The Fourth Industrial Revolution: • We are living in a new phase of economic history → the 4th industrial revolution (also called Industry 4.0) • This is characterized by an unprecedented advance in d___ t___, which is blurring the lines between the p___, d___ & b___ sphere • The 1st Industrial Revolution used w___ & s___ power to mechanize production, the 2nd used e___ p___ to create mass production, the 3rd used e___ & I___ to automate production, and now the 4th is using the latest advances in d___ t___ (the degree of complexity has increased which each one)

digital technology; physical; digital; biological; water; steam; electric power; electronics; IT; digital technology

Management science (MS), also known as 'operations research' is a d___ that attempts to aid managerial d___‐m___ by applying a s___ approach to managerial problems that involve q___ factors • It's a highly developed field of study with many wide‐ranging applications to everyday life, esp in the area of transport, & more recently, in LSCM as well

discipline; decision-making; scientific; quantitative;

Ideally, we should strive to identify and manage known vulnerabilities by asking questions such as: • What has d___ operations in the past? • What known w___ do we have? • What 'n___ m___' have we experienced? • Recording near misses is something that all organisations should do. Sometimes no one's aware that a near miss took place, & they go unreported bc people feel that the incident might reflect badly on them • Forward‐thinking organizations recognize that near misses are often warnings of worse to come

disrupted; weaknesses; near misses

Five Categories of Supply Chain Risks: 1. Systematic - • Impact: On the general e___ • Risk Sources: P___ uncertainties, m___ uncertainties, s___ uncertainties, e___ uncertainties • Examples: Situations of political instability, fluctuations in lvls of economic activity or prices, changes in peoples values/attitudes/belief's, floods/droughts/earthquakes

economy; political; macroeconomic; social; environmental

How this self-thinking SC will work: • In the pic, the SC goes: suppliers → manufactures & service providers → customers • Data & goods flow both ways, but prods physically move from left to right • Real-time data on demand & supply acts like a g___ → adjusting the f___ of goods so everything runs smoothly 1. Cloud (brain of the system) - the cloud g___ all the d___ from across the SC & helps with r___-t___ d___ m___; it also a___ info on the wider environment & s___ that info to the rest of the SC 2. IoT Sensors (The Eyes and Ears) - these c___, s___, & s___ data in real-time across the SC 3. AI (The Thinking Power) - AI a___ all the collected data to monitor performance & automatically take a___ when something goes off-track (e.g. delays or shortages) 4. Self-Thinking Supply Chain - the system is smart enough to understand customer needs, share platforms across products, & customize prods to match cust requests

gearbox; flow; real-time gathers; data; decision making; assimilates; sends; collect; store; share; analyzes; actions (Real-time customization ex: imagine customer C has a shortage; the system can divert a product meant for Customer B to Customer C while it's still on the way; the product gets modified in-transit to match Customer C's needs. That's how flexible & responsive the supply chain becomes)

Forecasting, scenario building & data analytics: • It's impossible to predict the future, but there's MS insights & tools that can be used to look at what may occur in the future. Quantitative (numerical) Methods - • An easy approach is to examine h___ p___ & simply extrapolate those into the future. • When looking at historical trends, it's important to also try to investigate c___. This is the basis for using regression models in forecasting • Various transport & logistics i___ are also often used to track trends & thus hopefully get an insight into what may happen in the future Qualitative (descriptive) Method- • The D___ t___ is an iterative forecasting technique that employs a panel of experts to make forecasts on the basis of their shared insights & expertise

historical patterns; causality; indices; Delphi technique

Five Categories of Supply Chain Risks: These 5 categories can be distinguished according to the (1) l___ of risk, and (2) where the c___ become evident: • While systemic risks can emerge at the g___ level, i___ of a particular industry or supply chain & affecting a___ i___ & SC's, market risks can affect a s___ of economic activity. • Operational & credit risks are manifested at the l___ level in the n___ of a supply chain or in the r___ between them. • Liquidity risks emerge at the level of a s___ n___ or a___ in a supply chain

level; consequences; global; independent; all industries; sector; local; nodes; relationships; specific node; actor

Transportation Model Assumptions: • Model assumes that there's a l___ relationship btwn the t___ c___ & the n___ of u___ being transported (but this may not always be the case). When using this model, it's important that the units of supply & the demand (requirement) from destinations are consistent • Assumes that the total of supply shipments from a supplier should be less than or equal to the a___ s___ • Assumes that the sum of shipments to a destination should be ___ t___ or e___ to the demand/requirement at that destination (these constraints have to be satisfied w the objective of minimizing total transport cost) • Assumes that the goods are only shipped from origins to the destinations, which means from suppliers to purchasers but NOT in the r___ direction

linear; transport cost; number; units; available supply; less than; equal; reverse;

Simulation Advantages: • The key advantage is that it's relatively l___ c___ (you can run the simulation on your computer) & thus you can investigate any q___ you have before investing c___ & disrupting operations • S___ of analysis & f___ of data input are key advantages of simulation. • You can run simulations on standard programs (i.e. Excel) or on specialized simulation software • An advantage of the specialized simulation programmers is their use of graphical interfaces which can show end users the simulation outputs (i.e. rather than seeing a set of numbers rolling through a spreadsheet, you see an animated representation of the actual system being simulated)

low cost; questions; capital; Speed; flexibility;

• Information Complexity - data may be flowing in m___ d___ & be i___ (i.e. one set of data is reliant for its accuracy on another set of data). • Information Proliferation - how w___ (upstream, downstream) does the data go. • Information Diffusion - how d___ does the data go (i.e. can different layers of mgmt drill down into the data to get greater insights). • Information Velocity - how f___ does the data f___ (e.g. when can upstream actors get data on downstream sales). • Information Accuracy - is the information that's captured s___ v___

multiple directions; interdependent; wide; deep; fast; flow; sufficiently valid.

The term resilience refers to 'the ability of a system to r___ to its o___ (or d___) s___ after being d___' Consideration of risk & resilience in a supply chain: • It encourages a w___ s___ perspective • It explicitly accepts that d___ happen • It implies a___ to c___ c___

return; original; desired; state; disturbed; whole system; disturbances; adaptability; changing circumstances

Internet of Things (IoT) - refers to a n___ of i___ including s___ & e___ s___ which are connected to the internet & enable physical objects to g___ & e___ d___ • With the advent of IoT, Internet connections now extend to physical objects that are not computers in the classic sense & have many other purposes. • To light up such 'dark assets', IoT encompasses a diverse array of technologies, including w___ local networks (e.g. Bluetooth, RFID, Wi‐Fi), m___ networks & w___ area connections (e.g. 4G, LTE), as well as w___ connections

network; items; sensors; embedded systems; connected; gather; exchange data; wireless; mesh; wide; wired

Optimization Techniques in Transport: • Transportation Model - one of the most commonly used models that aims to determine the n___ of u___ that should be t___ from each supplier to each destination such that total t___ c___ or total d___ t___ is minimized • Input data for this model: # of units of the product required by the destination (i.e. DC, warehouse), # of units avail with each supplier (origin), the unit transport cost from each origin to each destination

number; units; transported; transport cost; distance traveled

Reasons Why Decision-Making Regarding the Mode, Route, & LSP Choice is Complex: • The o___ of the process can c___ (e.g. to both maximize customer service & minimize costs) • Full i___ is often n___ a___ bc of the dynamic & uncertain environment • The evaluation of the potential options is based on m___ c___ • The evaluation can be dependent upon s___ j___ by the decision makers • The l___ of the decision (Who? When?): several people are usually involved in the decision process • There are often a large number of a___ to be evaluated in the process

objectives; conflict; information; not available; multiple criteria; subjective judgements; locus; alternatives

Visibility of information is highly desirable, but is difficult to achieve, some barriers include: Cultural Barriers - • The number of supply p___ • Barriers to s___ information • Disparity btwn trading partners' c___ & i___ s___ are significant barriers to an IT‐enabled supply chain Financial Barriers - • The c___ of i___ & m___ supply chain spanning information technologies can be immense. These cost implications become financial barriers if the d___ between trading p___ exist

partners; sharing; capabilities; information security; costs; implementing; maintaining; disparities; partners

System Characteristics: Another dimension to our analysis is the passage of time & whether to account for it - • Static models do NOT allow for the p___ o__ t___ (& thus just represent a snapshot of the system at that particular point in time) • Dynamic models d___ include the passage of time Dynamic models can be divided into two categories: 1. D___ e___ models - state changes only occur at d___ points in time (e.g. customers can only collect orders at a set time) 2. C___ models - state variables change c___ with respect to time (e.g. the temp of a product may not be held stable during transit)

passage of time; do; discrete event; discrete; continuous; continuously

Interpretations of Risk: The main problem stems from multiple meanings of the term 'risk': • In decision theory, risk is a p___ or a m___ of the r___ of possible o___ from a single totally r___ d___ & their v___, in terms of upside g___ & downside l___ • 'Risk' may refer to a particular type of h___ or t___ (e.g., technological risk or political risk) • 'Risk' may describe the only the d___ c____ of a rational decision (in terms of the resulting financial losses or number of casualties) • We will use the term risk as it relates to vulnerability, that is 'at risk: vulnerable; likely to be l___ or d___'

probability; measure; range; outcomes; rational decision; values; gains; losses; hazard; threat; downside consequences; lost; damaged

Technical Barriers - • The various info systems at each supply chain partner should either be the s___ or at least have the ability to 't___' to each other. This issue does not end with the hardware & software. • Supply chain partners must also agree on w___ d___ are required to be transmitted, w___ and to w___ Organizational Barriers - • D___ processes can exist within single organizations, & to align the numerous disparate processes across multiple supply chain echelons, a highly complex p___ of a___ is required

same; talk; what data; when; whom; Divergent; program; activities

Mode, Route, & LSP Choice: • Many logistics decision makers often engage in what is known as 's__' (as opposed to 'maximizing') decision‐making behavior, that is, they select routes & services which they know are n___ o___ but with which they will nonetheless be largely content. This may be for a variety of reasons (i.e. they don't have the time to appraise alternatives, ease & convenience of use, or a desire to avoid the risk of anything going wrong)

satisficing; not optimum;

Five Categories of Supply Chain Risks: 2. Market - • Impact: On a specific s___ of the e___ • Risk Sources: M___ uncertainties, r___ or i___ uncertainties • Examples: Fluctuations in price levels of inputs & products, tech changes, changes in consumer preferences, availability of alternative prices; quality standards & regulations

sector; economy; market; regulatory; institutional

Information Visibility is the ability to s___ i___ at the various p___ across the supply chain as and when required, which can help to manage the inherent c___ that exists in supply chains today.

see information; points; complexity

Taking a more proactive stance, a good supply chain manager should also be asking 'effects'‐ based questions, such as: • What would be the effect of a s___ of a key m___? • What would be the effect of the loss of our d___ s___? • What would be the effect of the loss of a key s___ or c___?

shortage; materials; distribution site; supplier; customer

Supply Chain Risk Management (SCRM) refers to the set of s___ used to i___ & m___ risks along the supply chain, with the goal of m___ v___ & improving supply chain r___ Among such strategies are: • Increasing v___ with suppliers & clients through i___ s___ • Increasing f___ in the p___ process to respond to any e___ c___ • P___ • M___ sourcing & f___ vendor c___ • Building r___ by adding external s___ s___ • J___ p___ & coordination with supply chain p___

strategies; identify; manage; minimizing vulnerability; resilience; visibility; information sharing; flexibility; production; external changes; Postponement; multiple; flexible; contracts; redundancy; safety stocks; Joint planning; partners

Robust SCM: • The definition of 'robust' is s___ in constitution, hardy, or v___ • A robust SCM strategy enables a firm to manage regular f___ in d___ efficiently under normal circumstances, regardless of the occurrence of a m___ d___

strong; vigorous; fluctuations; demand; major disruption

The Structure of Decision‐Making: • A useful starting point in any analysis of decision‐making is to first understand how the requisite decision can be s___, what c___ should be considered & how they should be w___ & s___ • One of the simplest approaches is to build a d___ t___ which represents the different possible outcomes & the probability of their occurrence; the decision then is made on the basis of selecting the outcome with the highest score (determined as the probability multiplied by the value associated with that particular outcome)

structured; criteria; weighted; scored; decision tree

Five Categories of Supply Chain Risks: 4 & 5. Credit & Liquidity - • Impact: On a specific s___ c___ or it's n___ • Risk Sources: Uncertainty about the s___ or f___ s___, uncertainty about the p___ c___, uncertainty about the firm's f___ h___ • Examples: sectors in which there's greater info asymmetry (i.e. tech & agriculture); non-compliance or extensions in the payment cycles that cause delays in firm's short-term commitments; incomplete or out-of-date financial & accounting records

supply chain; nodes; sector; firm segment; payment cycle; financial health

Five Categories of Supply Chain Risks: 3. Operational - • Impact: On a specific s ___ c___ • Risk Sources: S___ uncertainties p___ uncertainties, a___ uncertainties • Examples: delays in deliveries, failures in input quality/quantity; mechanical, technical, or process failures, forecasting errors, failures in prod quality/quantity; failures or delays in administrative procedures

supply chain; supply; production; administrative

Creeping crises are s___ supply chain d___ that arise usually from u___ sources & have w___ consequences

systematic; disruptions; unexpected; widespread

Self‐Thinking Supply Chain: • Researchers suggest that in the near future, the supply chain will t___ by itself. It'll be driven by IoT, robotics & AI. The supply chain will be s___‐a___ & require minimum, if any, h___ i___ • The self‐thinking supply chain has a___ & p___ capabilities How this self-thinking SC will work: • There will be a high degree of c___ btwn cyber systems & physical objects thru the use of LoT • IoT technology will be ubiquitous thru the deployment of sensors, short‐ and long‐range networks & Internet‐enabled applications • Increased connectivity among SC partners enabled by IoT, together with AI, will allow for more accurate demand forecasting, predictive maintenance & continuous optimization. Self-thinking SC characteristics: 1. A___ d___ m___ 2. P___ capabilities 3. H___ c___ 4. C___ l___

think; self-aware; human intervention; autonomous; predictive; connectivity; autonomous decision-making; predictive; high connectivity; continuous learning

Data Flows in the Supply Chain: • Access to t___ & a____ i___ is fundamental to effective SCM. Information must also be u___ & u___. • Desktop & mobile devices are the toolkit of mgmt & are used on the shop floor to access real-time info from upstream & downstream in the SC (like when I ask for a prod at the grocery store & they look it up on their phone) • This information accessibility not only supports the ability to p___ & c___ supply chain activities but also, and arguably more importantly, provides 24/7 v___ of when things don't go to plan

timely; accurate; information; useful; usable; plan; control; visibility

Data Analytics: • Data analytics techniques can reveal t___ & provide input to p___ m___ that would otherwise be lost in the mass of data • This info can then be used to i___ (i.e. route planning & JIT inventory optimization) as well as assist in trying to determine what m___ o___ in the f___ • Used to enhance information sharing across SC → one way to do this is by allowing suppliers direct access to e___ p___-o__-s___ data (EPOS), thereby facilitating full visibility between them & retailers

trends; input; performance metrics; improve; may occur; future; information sharing; electronic-point-of-sale