SCM 4003 Exam 1

what is network design

- Network design is important since it has strategic, economic, and operational implications for its firms - these include selecting the number, size, and location of warehouses/distribution centers; assigning inventory to these nodes; and identifying the best delivery options to provide a given level of service while minimizing transportation costs -network design implies balancing logistics costs with customer expectations in terms of meeting product demand at the right time, in the right place, and with the least possible costs

what are some ways of increasing efficiency in logisitics systems

new technology such as RFID and blockchain

meaning of deregulate

reduction/removal of various government-imposed barriers that hinder competition in markets

What is Metcalfe's Law?

states that the effect of a telecommunications network is proportional to the sqaure of the number of connected users of the system

What is the hub-and-spoke design?

where the lowest cost for the entire network is achieved by indirect routing via hubs, the use of different types of vessels/aeroplanes in the network for optimal assest utilisation, and the amalgamation of flows to benfit fromscale economies in transportation

what are the modes of transportation

air, road, water, rail and pipeline(internet can also be regarded as the 6th mode)

what is globalization

an umbrella term for a complex series of economic, social, technological, cultural and politcial changes which continue to take place throughout the world

what are some factors when trying to decided to on the optimal location of an overseas facility

labor costs, employment regulations, available skills, land costs and availably of suitable sites, energy costs, availability of suitable suppliers, transport and logistics costs, transport linkages, communications infrastructure and costs, political stability, environmental regulations, taxation rates, government supports, currency stability, benefits of being part of a cluster of similar companies, preferred locations of competitors, access to markets, community issues and quality of life

short asnwer question: what is servisation

involves manufacturers not just delivering tangible, physical products but also offering services that enhance their value proposition and add profitability

what is servitisation

involves manufacturers not just delivering tangible, physical products but also offering services that enhance their value proposition and add profitability

short answer question: what are directional imbalances

mismatches in the volumes or types of freight moving in opposite directions in a freight market( leading to different freight rates being charged in opposite direction

short answer question: what is a bidirectional duality

- a duality will not only exist between the service provider and customer but also between the supplier and service provider - knowledge and/or resources are input from the customer to the service provider, and from the service provider to the supplier. They in turn supply the outputs necessary to complete the original service provision

are service and manufacturing supply chains the same? and what are the challenges

- a service supply chain is the network of suppliers, service providers, consumers, and other supporting units that performs the functions of transaction of resources required to produce services; transformation of these resources into supporting and core services, and the delivery of these services to customers - services cannot be managed along a supply chain in the same way as manufactured goods. Services are less tangible, more heterogeneous, more perishable, and inseparable from the point of consumption - the emphasis of a service supply chain is predominantly on the creation of value through labor and knowledge, whereas a manufacturing supply chain will create value through the provision of standardized, repeatable processes that ensure the delivery of freight to the end customer in a timely fashion. - The challenge for service providers is to structure and automate where possible their processes in such a way that they can gain economies similar to those enjoyed by manufacturers

what is systems thinking

- a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part - it notes a contrast between reductionism, reducing the system to its constituent parts, and holism

What are grey markets?

- also referred to as parallel imports - this is where a product moves through a particular distribution channel that is not authorized by the original manufacturer or copyright owner

what is the network effect

- as more firms join the supply chain, the value of being part of the network increases

Meaning of Logistics

- defined as " the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and relative information from the point of origin to the point of consumption for the purpose of conforming to customer requirements, this definition includes inbound, outbound, internal, and external movements."

short answer question: what is foregin direct investment

- foreign direct investment flows are financial flows from a company in one country to invest in another country - such flows are very significiant in the overall global economy, and in some cases can be key to dictating a country's success

what is MaaS

- mobility as a service - multimodal travle solutions avaiable through a single digital platform accessible on demand

what is service science(what is it focused on)

- service science is the study of the application of the resources of one or more systems for the benfeit of another system in economic exchange - what drives service science research is the need to create value in the provision of a service - most reasearch in this field is focused on service innovation

what does supply chain complexity mean

- supply chain complexity refers to the interdependency among parts of a system - there are 8 types of supply chain complexity: 1. Network complexity: too many nodes and links 2. Process complexity: too many steps 3. Range complexity: too wide a range of products offered 4. Product complexity: too many unique components 5. Customer complexity: too many service options 6. Supplier complexity: too many suppliers 7. Organisational complexity: too many levels and 'silos' 8. Information complexity: too much data flowing in all directions and not necessarily always accurate.

logistics involves getting:

- the right product - in the right way - in the right quantity and right quality - in the right place at the right time - for the right customer at the right cost

logistics cost have reached what percent of GDP in 2018

8%

what are key developments in the evolution of supply chain

1. Reduced transport intensity of freight 2. Falling product prices 3. Deregulation of transport 4. Productivity improvements 5. Emphasis on inventory reduction 6. Changes in company structure

what is a TEU

Twenty-foot equivalent units = what container capacity is expressed in

True or False: companies have been moving towards silo-based or functional thinking to help overall performance in the firm

False. Silo-based thinking (viewing the various departments within the firm as separate and non-overlapping entities) has been found to only hinder the overall performance of the company

what are RFIDs and blockchain

RFID: radio frequency identification blockchain: A system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer-to-peer network. Both drive more efficiencies into logistics systems

what does two level bi-directional mean? single level bi-directional?

Single-level bi-directional duality: the duality exists only at the interface between the service provider and the customer two-level bi-directional duality: a duality will not only exist between the service provider and customer but also between the supplier and service provider

meaning of supply chain

The supply chain is the network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer

global trade has been doing what

There has been considerable growth in recent decades in world trade

short answer question: the view of logistics in suply chain as explained by our book

We adopt the unionist point of view. In the unionist view logistics is seen as part of a wider entity, supply chain management

what kind of persepctive do we take in the book in term logistics and supply chain

We adopt the unionist point of view. In the unionist view logistics is seen as part of a wider entity, supply chain management

what is a private monoply

a company that has little to no competition in a market, allowing it to set its own prices and terms

what is a consignment

a shipment of goods cosigned

when we add complexity, what else can we add

connectivity

what is cargo

freight + mail

geocentricity vs polycentricity vs ethnocentricity

geocentricity: where the company acts completely independent of geography and adopts a global perspective, and will tailor to the local environment as appropriate polycentricity: where the company adopts the host country perspective ethnocentricity: where the company when doing business abroad thinks only in terms of the home country's environment

what did malcom mclean do

he was an entrepreneur who was able to put 58 aluminum truck bodies aboard a tanker in 1956. this marked the start of containerized transport. this later led to huge changes in ports which reduced the costs of transporting freight by maritime transport and improved efficiency

what helps absorbs transport cost

high-value freight helps "absorb" transport costs by being worth(valued) more than the cost of transporting

what plays a greater role in the world of trade

in-process and finished products now play a greater role in the world of trade over raw materials

why do companies have to reduce cost

increased competition and falling marketplace prices have forced companies to reduce costs

what is a consignee

term used for the company who recieves the cosignment

what is a cosignor

term used for the company who sends the consignment

what is the bullwhip effect

the distortion of orders along the supply chain, where small fluctuations in end customer demand can result in wide variation in inventory levels the further upstream we go in the supply chain

What is material substituiton

the replacement of physical product by virtual product

when talking about decoupling, we are also depending on(in the united states) a lot more of what as a percent of GDP

there is current evidence that growth in merchandise trade is also stating to decouple from growth in GDP

What are transnational corporations?

these are companies that trade across borders with operations in multiple countries

what are policy makers trying to do between transport growth & GDP

they are currently trying the decouple transport growth and GDP. they are doing this to try to ensure that an economy can grow without concomitant growth in the negative environmental impacts associated with increased transport demand.

demand for transport is what kind of demand

this is known as dervied demand, i.e. the demand for trasnport is dependent upon someone wishing to move freight from one point to another

upstream vs downstream

upstream: supplier end of the supply chain downstream: customer end of the supply chain

short answer question: explain transfer pricing

when goods or services are transferred between divisions of the same company, a value is attributed to them called a transfer price, multinational companies can thus move work-in-progress materials between countries and use transfer pricing to minimize their tax exposure

what is transfer pricing

when goods or services are transferred between divisions of the same company, a value is attributed to them called a transfer price, multinational companies can thus move work-in-progress materials between countries and use transfer pricing to minimize their tax exposure