chapter 6 answers to study questions

Chapter 6 answers - chapter 6 answers to study questions ANSWERS TO STUDY QUESTIONS 1 Discuss the role of information in the supply chain and how

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chapter 6 answers to study questions ANSWERS TO STUDY QUESTIONS 1. Discuss the role of information in the supply chain and how it supports supply chain planning and execution. Answer: It has been said that information is the lifeline of business, driving effective decisions and actions. It is especially critical to supply chain managers because their direct line of sight to supply chain processes is very limited. Information provides them with insights and visibility into the supply chain activities taking place at distant supplier and customer locations. This visibility of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses. In contrast, limited awareness of external activity would leave the supply chain manager blind to the true situation and unable to make knowledge-driven decisions. Actions would be based on educated guesses with no guarantee of effective outcomes. A wide variety of information is needed for a supply chain to perform as anticipated. As you read through this book, it will become evident just how important information is for both long-range and day-to-day decision making. Supply chain professionals require information from across the channel for strategic planning issues such as network design, tactical planning and collaboration with supply chain partners, and execution of key processes. This information must effectively flow within the organization and between key participants to ensure the timely flow and control of materials and money in the supply chain. (Page 189-190) 2. Describe the components of information quality, and how they impact supply chain decision making. Answer: Information quality is a critical characteristic of the knowledge flowing across the supply chain. Information must be available to supply chain managers who have a legitimate need for it, regardless of their location or employer. Supply chain managers must know what information is needed, and be able to quickly acquire only that which is applicable to their current situation. The information must be correct and depict reality; otherwise, it will be difficult to make appropriate decisions. Information inaccuracies can lead to inventory shortages, transportation delays, governmental penalties, and dissatisfied customers. The information must also be up to date, available in a reasonable timeframe, and transferable from one format to another to make it understandable and useful. Recent research found that information technology has a direct and positive impact on organizational performance, internal collaboration, and external collaboration. Information technology links geographically dispersed supply chain partners and facilities electronically, giving them the critical ability to monitor what is happening across the supply chain.By virtue of providing connectivity and visibility, technology facilitates real-time data sharing between
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This note was uploaded on 07/28/2011 for the course MKTG 4354 taught by Professor Nancyevans during the Summer '11 term at Virginia Tech.

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Chapter 6 answers - chapter 6 answers to study questions ANSWERS TO STUDY QUESTIONS 1 Discuss the role of information in the supply chain and how

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