Chapter 9, Problem 2RQ

Explanation of Solution

Supply chain:

• It is an activity that manages the movement of raw materials like services, cash into the organization via factories or warehouses to the end consumers.
• It also includes organizations that create and deliver products, data and services.
• It creates trust among their partners.

Supply chain management (SCM):

• Supply Chain Management is defined as the method of designing, planning, implementing and combining all supply chain process...

Explanation of Solution

Supply chain management help reducing the bullwhip effect:

• Bullwhip effect is an effect that happens if the data about the demand for a product gets biased as it transfers from one unit to other across the supply chain.
• It can be handled by decreasing hesitations about the demands and suppli...

Explanation of Solution

Comparison between supply chain planning system and supply chain execution system:

Supply chain planning system	Supply chain execution system
It aids the organization to produce demand predictions for a particular product, and also helps to develop tracking and manufacturing plans for that product...

Explanation of Solution

Challenges of global supply chain:

Some of the challenges of global supply chain are as follows:

• Improved customer access:
  • This challenge can be overcome by using internet technology which the organization could achieve improved point of sales and partnerships.
• Integration of supply chain organization:
  • This challenge can be overcome by integrating across all function and not with just particular functions...

Explanation of Solution

Differences between push-based and pull-based model:

In push based model, production schedules are based on predictions or guesses of demand for products whereas in pull-based model, the customer orders and purchases trigger events in the supply chain...