Distributor delivers directly to the customer’s home rather than using a carrier (e.g., online grocery delivery).
+------------------------+ +-------------------------+ | Customer Demand | ➔ | Supply Chain Capability | | (Implied Uncertainty) | | (Responsiveness/Cost) | +------------------------+ +-------------------------+ \ / \ / \ / +------------------------------+ | STRATEGIC FIT | +------------------------------+
This section focuses on physical infrastructure and the impact of digital sales.
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┌──────────────────────────────┐ │ Logistical Drivers │ │ • Facilities │ │ • Inventory │ │ • Transportation │ └──────────────┬───────────────┘ │ DRIVES GLOBAL PERFORMANCE │ ┌──────────────┴───────────────┐ │ Cross-Functional Drivers │ │ • Information │ │ • Sourcing │ │ • Pricing │ └──────────────────────────────┘ Logistical Drivers Facilities This link or copies made by others cannot be deleted
Practical tools for managing uncertainty and the flow of goods.
For professionals or educators creating or using complete, new presentations based on the 7th edition layout, follow this standard structural flow: Module / Chapter Presentation Core Topics Key Quantitative Formulas & Models
Suppliers Cross-Dock Hub Destinations [ Supplier A ] ---------\ /----> [ Retailer 1 ] [ Supplier B ] ---------> [ Cross-Dock Facility ] ----+------> [ Retailer 2 ] [ Supplier C ] ---------/ \----> [ Retailer 3 ] 6. Managing Cross-Functional Drivers
The (e.g., undergraduate students, MBA candidates, executive leadership)
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Predictable demand (e.g., table salt, detergent).
When selecting suppliers, organizations must look beyond the purchase price to look at the . TCO includes: Acquisition costs (price, customs, shipping) Ownership costs (inventory holding, quality control) Post-ownership costs (warranty, environmental disposal) Sourcing Strategies
The traditional retail model. Most expensive for facility costs, but minimizes shipping costs. Optimization Models for Network Design
This is the biggest driver of performance. It enables supply chain visibility, forecasting, and collaborative planning (e.g., ERP, RFID, Blockchain).
A company’s competitive strategy defines the set of customer needs it seeks to satisfy through its products and services. A supply chain strategy determines what the operations, distribution, and service functions must do particularly well. The Three Steps to Strategic Fit It enables supply chain visibility
Dynamic pricing applied to assets that lose value over time (e.g., airline seats, seasonal fashion).
Accurate forecasting reduces the bullwhip effect. Aggregate planning helps enterprises optimize capacity and production schedules over a mid-term horizon. Risk Management in Forecasting
Sourcing involves deciding whether to perform a task in-house or outsource it to a third party.
Inventory management requires a delicate balance between availability and holding costs. Chopra breaks down inventory into three primary operational types: Cycle Inventory