Supply Chain Mgmt Essay

12403 Words Jul 19th, 2015 50 Pages
Designing and Managing the Supply Chain
David Simchi-Levi

Philip Kaminsky

Edith Simchi-Levi

Solutions for Discussion Questions1
Kerem B¨lb¨l u u

1

We would like to thank Shiming Deng for his valuable contributions to the preparation of this manual.

Chapter 1

Introduction to Supply Chain
Management
Discussion Questions
Question 1
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
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3. Warehousing: Low inventory, reduced transportation costs and quick replenishment capability. 4. Customers: Short order lead times, a large variety of products and low prices.
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.

Question 2
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

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