Supply Chain Mgmt Essay
Solutions for Discussion Questions1
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We would like to thank Shiming Deng for his valuable contributions to the preparation of this manual.
Introduction to Supply Chain
Pick any car model manufactured by a domestic auto maker. For example, consider the
2002 Ford Thunderbird.
a. The supply chain for a car typically includes the following components:
1. Suppliers for raw materials
2. Suppliers for parts and subsystems
3. Automobile manufacturer (Ford, in this example). Within a company, there are also diﬀerent departments, which constitute the …show more content…
Typically, the automobile dealer would like to oﬀer a variety of car colors and conÞgurations to accommodate diﬀerent customer preferences, and meanwhile have a short delivery lead time from the manufacturer. However, in order to maximize the length of production runs, and utilize resources more eﬃciently, the manufacturer would like to aggregate orders from diﬀerent dealers and oﬀer less variety in car conÞgurations. This is a clear example of conßicting marketing and manufacturing goals.
a. The supply chain for a consumer mortgage oﬀered by a bank may involve various components:
1. Marketing companies that handle solicitation to potential customers.
2. Credit reporting agencies that evaluate potential customers.
3. The bank that extends the mortgage loans.
4. Mortgage brokers through which the loans are distributed.
b. The marketing companies strive to increase the response rate from homebuyers in order to maximize their returns. Banks aim at a customer portfolio with a relatively low risk, healthy ßow of payments and low average loan maturity date. The brokers would like to maximize their sales commissions.
c. Similar to product supply chains, the objective of a service supply chain is to provide what is needed (in this case a particular type of service, rather