01/ A-Define supply chain management with its process.

Ans - Supply Chain Management is a network between a company and its suppliers to
produce and distribute a specific product or service. Starting from the raw components all
the way to delivering the final product to the consumer.

The supply Chain Process;

the entire process of making and selling commercial goods, including every stage
from the supply of materials and the manufacture of the goods through to their
distribution and sale.

B- Describe different roles played by boundary spanning

activities

These boundary spanning activities have played three different roles:

Gatekeeping—They single out potential suppliers and third-party logistics

providers through a request for proposal (RFP) and then help the firm to make an
informed decision as to who will be selected as the supply chain partner among a
managerial list of candidates.

Transacting—They develop all aspects of business trading opportunities with

the potential supply chain partners on an equal footing.

Protecting—They ensure conformance with contract terms and conditions,

delivery schedules, product/service quality, and other partnership agreements
C- What is the role of supply chain management in creating and adding value for
customers?

Supply chain management deals with how businesses turn raw materials into
finished products, and then transport and distribute those products to
consumers. Supply chains are systems that link organizations to their
suppliers, allowing them to produce and distribute goods and products.

D- Define primary partners and supporting partners with examples.

Primary Partner- Strategic business units that actually perform operational and/or
managerial activities designed to create a specific product or service for a
particular customer or market. Example -These primary partners can be
manufacturers such as Dell or mass-merchants such as Walmart 

Supporting Partner- Supporting partners are companies that simply provide

resources, knowledge, and utility for the supply chain. These supporting partners
can be transportation carriers, consulting firms, third-party logistics providers,

Warehouse
01-What is warehouse?

Ans-A warehouse is a building for storing goods. Warehouses are used

by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

2-Traditional function of warehouse?

the traditional functions of a warehouse include the following:
01-Receiving

• The orderly receipt of all materials coming into the warehouse

• Providing the assurance that the quantity and quality of such materials as
ordered
• Disbursing materials to storage or to other organizational functions requiring
Them

02-Prepackaging

• Packaging bulky products in merchandisable quantities or in combination

with other parts to form kits or assortments
• Putaway
• The act of moving material from the point of receipt

03-Cross Docking

• Involves receiving bulk shipments and then breaking these shipments into
smaller orders, packing them,

04-Unitizing

• Consolidating a number of individual items onto one shipping unit for easy
handling
• Packaging merchandise in appropriate shipping containers
• Accumulating orders by outbound carriers

03- Types of Warehouses-

Basically, warehouses are classified into one of three categories: private warehouses, public
warehouses, or contract warehouse.

01-A private warehouse can be either leased or owned by the firm whose products
are stored in it.

02-A public warehouse can take a variety of forms:

• General merchandise warehouse —Intended for storing any kind of products.

• Refrigerated (cold storage) warehouse—Intended for preserving perishable
items such as grocery store items in a temperature-controlled storage environment.
• Household goods warehouse (e.g., mini-storage facility)—Intended for storage
of personal property.
• Special commodity warehouse—Designed for some agricultural products such
as grains, salt, wool, and cotton.
• Bulk storage warehouse—Designed for dry products such as coal, sand, and
chemicals.
• Bonded warehouse—Storage for imported goods.
04-Pros and Cons of Private Warehousing (ADVANTAGE\Disadvantage)

HERE ARE ADVANTAGE-

 Direct control over warehousing employees, operations
 Economies of scale in large-volume operations
 Greater degree of freedom to meet the specific needs of the owning firm.

HERE ARE DISADVANTAGE-

• Inability to adapt to changes in the owning firm’s product mix, strategic locations,
and layout design

• Increased difficulty in managing warehousing labor problems.

05-Types of Warehouse Leases

• Gross lease—This is a type of commercial lease where the tenant pays one
lump-sum amount to the landlord (lessor), who is responsible for expenses, such as real-
estate taxes, building maintenance,

• Net lease—Generally speaking, a net lease allows the tenant to absorb fewer
fixed and variables expenses There are three categories of net
leases: single,double net and triple net

• Flat rental lease—In this lease term, a tenant pays a fixed and equal amount to the landlord
at specified rental periods throughout the duration of the contract.

• Adjustable (graduated or graded)—In this lease term, the tenant pays an

agreed rental fee that, after an initial period at a fixed rate, can be escalated or
deescalated periodically for successive lease periods to reflect changes in the

• Percentage lease—In this lease term, the tenant pays an agreed minimum rental
Fee plus a percentage of any sales revenue earned by the tenant.

06-Warehouse Network Design

warehouses have played three primary roles in supporting logistics functions.
• Storage role—Makes long production runs more economical and bridges temporal
gaps between demand and supply by making products available for customers
on a timely basis

• Consolidation role—Reduces total transportation cost by aggregating small

orders into large shipments and then taking advantages of economies of scale

• Customization (postponement) role—Reduces inventory carrying cost and

enhances customer services by delaying the final stage of fabrication, assembly,
and distribution until customers actually order specific types of products.
07-Warehouse Centralization Strategy.

One of the most noticeable trends in today’s warehousing operations is increased velocity.
Increased velocity is credited to increasing adaptation of more effective inventory
management practices such as Just-In-Time (JIT) inventory systems, improved forecasts,
more accurate inventory.

08-Warehouse Decentralization Strategy.

New ventures that would like to expand their businesses in new territories need to disperse
their warehouses in wider geographical areas

09-U-Shaped Flow

In a U-shaped layout, the floor space is allocated in such a way that receiving areas are
located closer to unloading/loading docks in the front of the warehouse, storage and
retrieval areas are reserved in the back of the warehouse,

10-Straight-Thru Design
In the straight-thru layout, the warehouse is considered a “flow-through” terminal where
receiving docks are located on one side of the warehouse, whereas shipping docks are
located on the opposite side of the warehouse,

11- Comparison between Reverse Logistics and Forward Logistics.

 TRASPORTATION + Sourcing

01-Transportation Changes.

These fundamental functions of transportation have been greatly expanded by gradual

changes in business environments and management philosophy for the last few decades.
Those changes include the following:

• Advancements in information technology such as geographic positioning systems

(GPS), satellite tracking systems, and radio frequency identification (RFID) that
help track shipment status during transit

• Government intervention in transportation practices that intends to control the

extent of competition in the marketplace and enhance transportation safety

• Unstable fuel prices, which necessitates the increasing use of alternative fuel

• Globalization of business activities that stretch the entire supply chain and then
increasingly require intermodal transportation with frequent modal transfers.

02- Central Place Theory.

Central place theory is concerned with the size, number, functional characteristics, and
spacing of settlements, which are nodal points for the distribution of goods and services to
surrounding market areas.

03-Transportation duties of careers-

These duties are specified as follows:
• Duty to serve—Must make a standing offer or holding out to serve all comers
within the carrier’s ability
• Duty to deliver (carrier liability)—Must deliver the goods in the same
condition as received with reasonable dispatch and to the right party with the
following exceptions (limitations):
• Acts of God (disaster)
• Acts of a public enemy (belligerent actions)
• Acts of public authority (confiscation)
• Acts of the shipper
• Duty to charge “reasonable” rates—Keep the rates of existing carriers at
“reasonable” rates. Regulatory bodies determine whether a rate is “reasonable.”
• Duty to avoid “undue” or “unjust” discrimination—Treat all customers, products,
and geographic locations the same when similar circumstances are present.

04-intermodalism, which involves transportation of cargo or passengers using multiple

modes (truck, rail, air, ship) under a single freight bill.
05-Benefits of Intermodelisam-

transportation brings a lot of benefits.

These benefits include reduction in cargo handling due to the use of standardized shipping
containers for intermodal transfers, shipping flexibility in hauling a wide variety of
products due to the combined use of diverse modes of transportation, improved cargo
security with less damage (including spoilage) and loss during transit resulting from
the use of protective intermodal shipping containers, faster shipment and lower freight
than the use of a single mode of transportation, and documentation cost savings

< Now some Sourcing part>

06- Inhouse vs outsourcing

07-Principles of Outsourcing.

Generally, outsourcing refers to the act of moving the company’s “noncore” business
activities and related decision responsibilities to outside providers. Its main goal is
to enhance the organization’s flexibility and competitiveness in rapidly changing
marketplaces.
Depending on its scope, outsourcing can be implemented at
four different stages

• Out-tasking—With out-tasking, a specific task with a narrow scope, such as

the delivery of finished goods to retailers in a certain area

• Co-managed services—Co-managed service is another form of outsourcing

in which the scope of subcontracted work performed by the outside supplier
is greater than out-tasking
• Managed services—With managed services, an outside supplier is responsible
for the design, implementation, and management of end-to-end supply chain
solutions for the customer
• Full outsourcing—In full outsourcing, the outside supplier takes full
responsibility for the customized design, implementation.

8. Traditional Costing versus Activity-Based Costing

9.

Discovery of Potential Supply Sources

These sources of supplier information can be classified into four different

categories:
• Published industry sources—Available from publications and websites that
contain information on new products and substitutions, suppliers’ general
backgrounds, and advertisements
• Internal sources—Available from the company’s own historical files
• Professional sources—Available from the buyers’ professional contacts
• International sources—Available from the World Trade Organization (WTO),
foreign governments, and embassies
10.Inquiry of Potential Supply Sources
• Is the supplier capable of providing products and/or services of acceptable quality
required by the buying firm on a consistent basis?
• What is the supplier’s quality management policy?
• What are the supplier’s environmental, ethics, and occupational safety policies?
• What quality certifications (e.g., ISO 9000 certification) are held by the supplier?
• How stable is the financial status of the supplier based on the last three years
of audited financial statements?
• How flexible is the supplier in meeting a variety of purchasing requirements?
(e.g., does the supplier have room for growth or expansion?)
• Does the supplier have a buyback or return policy?
• Is the supplier willing to complete a trial order? Are the test results of samples
sent by the supplier favorable?
• Is the feedback of other buying firms who have the firsthand knowledge of the
supplier mostly positive?

11. suppliers methods

 Categorical method— In this method, a purchasing manager is required to keep
and maintain a past performance record of all suppliers. The purchasing manager
establishes a list of factors (with equal importance) for evaluation purposes and
assigns a grade (plus, minus, and neutral) that measures supplier performance in
each of the established areas
• Weighted-point method- An application of the weighted-point method requires
the assignment of an appropriate weight to each performance factor. The specific
weight is a reflection of the purchasing manager’s judgment about the relative
importance of the specific performance factor
• Cost-ratio method- The cost-ratio method relates all identifiable purchasing
costs to the value of shipments received from individual suppliers (Zenz, 1994).
Each cost ratio is assigned to a specific rating, subject to various performance
criteria (e.g., quality, delivery, service). The lower the ratio of costs to shipments,
the higher the rating for the supplier
• Analytical hierarchy process (AHP) method-AHP is suitable for
systematically selecting the most desirable suppliers with respect to multiple,
confliction factors influencing the supplier selection decision. Indeed, AHP
is one of the most popular methods for selecting the supplier as evidenced by
its successful applications reported by Nydick and Hill (1992) and Min et al.
(1994).
• Multiple attribute utility theory (MAUT) method—MAUT was initially
proposed by Min (1994) for supplier selection due to its ability to take into
account both qualitative (e.g., quality assurance, perceived supply risk,
communication barriers) and quantitative factors (e.g., quoted price) influencing
supplier selection in the presence of risk and uncertainty.

12. supplier management definition

Supply management is the act of identifying, acquiring, and managing resources and
suppliers that are essential to the operations of an organization. It includes the
purchase of physical goods, information, services, and any other necessary resources that
enable a company to continue operating and growing.
13.supploer Ricks Types
Follow the figure-8.6
14. advantages of global sourcing

• Cost savings- Wages and material costs are often much lower in developing
countries than those in developed countries due to lower costs of living in the
developing countries.
• Higher quality—Certain countries have a long tradition of producing specialized
goods or materials better than other countries due to accumulated know-how and
skills. For example, Brazil is known for its high-quality leather products, whereas
Korea is known for its high-quality computer chips
• Flexibility—Even if the buying firm has a reliable group of domestic suppliers
to choose from for future sourcing, broadening the supply base globally
increases competition among the potential suppliers and thus gives the buying
firm an opportunity to obtain the better deal
• Declining trade barriers—The Reciprocal Tax Agreements Act of 1934
began the U.S. trend toward lower tariffs and freer trade, a trend that continues
to this day.
• Compliance with local content regulations—Local content regulations require
multinational firms that do business in foreign countries to increase the content/
percentage of locally produced goods for their purchases