Supply Chain Management Book Summary
Chapter 1
Operations and supply chain processes:
1. Planning
2. Sourcing
3. Making
4. Delivering
5. Returning
Difference between service and good
A service is intangible it can’t be measured or weighted
A service requires some degree of interaction with the customer
A service is heterogeneous
A service is perishable and time dependent
Benchmarking: When one company studies the processes of another company to identify
best practices
Chapter 2
Triple bottom line: Evaluating the firm against social, economic and environmental criteria
Straddling: When a firm seeks to match what a competitor is doing by adding new features,
services, or technologies to existing activities. This often creates problems if certain trade-
offs need to be made
Risk management framework
1. Identify the sources of potential disruptions
2. Assess the potential impact of the risk
3. Develop plans to mitigate the risk
Chapter 3
Moving average: A forecast based on average past demand
Exponential smoothing: A time series forecasting technique in which each incremental of
past demand data is decreased by (1 – α)
Chapter 4
Planning service capacity:
- Time
- Location
- Volatility of demand
Chapter 6
Lead time: The time needed to respond to a customer order
Customer order decoupling point: Where inventory is positioned in the supply chain
Chapter 1
Operations and supply chain processes:
1. Planning
2. Sourcing
3. Making
4. Delivering
5. Returning
Difference between service and good
A service is intangible it can’t be measured or weighted
A service requires some degree of interaction with the customer
A service is heterogeneous
A service is perishable and time dependent
Benchmarking: When one company studies the processes of another company to identify
best practices
Chapter 2
Triple bottom line: Evaluating the firm against social, economic and environmental criteria
Straddling: When a firm seeks to match what a competitor is doing by adding new features,
services, or technologies to existing activities. This often creates problems if certain trade-
offs need to be made
Risk management framework
1. Identify the sources of potential disruptions
2. Assess the potential impact of the risk
3. Develop plans to mitigate the risk
Chapter 3
Moving average: A forecast based on average past demand
Exponential smoothing: A time series forecasting technique in which each incremental of
past demand data is decreased by (1 – α)
Chapter 4
Planning service capacity:
- Time
- Location
- Volatility of demand
Chapter 6
Lead time: The time needed to respond to a customer order
Customer order decoupling point: Where inventory is positioned in the supply chain
