AIMS 3770 – Dr. Leon
Spring 2015
Reading Assignment #3 – Supply Chain Management

Text Reading:
o Chapter 11, pp.430-442, 448
o Articles posted in MyLMUConnect
* Study Guide Questions:
1. List Darden’s four supplier channels. What characteristics do the four different
supply channels have in common?
2. In Table 11.2, the three strategies that impact supply chain decisions are called:
a.
b.
c.
3. For each strategy in Table 11.2, what should the supplier’s goal and primary
selection criteria be?
a.
b.
c.
4. For each strategy in Table 11.2, what are the lead-time and inventory
characteristics that the supply chain decisions support?
a.
b.
c.
5. Based on your analysis of Table 11.2, which strategy do you think applies to
Apple, Inc.? Why do you believe this to be the case?
6. Read the New York Times article “In China, Human Costs Built into iPad” posted
in MyLMUConnect. Based on statements made in this article, what appears to be
Apple’s main selection criteria for its suppliers? How do you reconcile these
criteria with the strategy you identified in question 5?
7. Read the OM in Action titled “A Rose is a Rose”. Describe two challenges that
supply chains for roses face:
a.
b.
8. What is the “many-supplier” strategy? Why would a company want to implement
this strategy?
9. List three advantages of implementing a strategy of few suppliers:
a.
b.
c.
10. List two disadvantages to the few supplier strategy:
a.
b.
11. Describe a vertical integration strategy:
12. Read the categories of supply chain risk described in Table 11.3. Be prepared to
list one or two risks and provide an example of a tactic that a company has
implemented to mitigate the risk you identified.
13. Describe three issues that can result in a supply chain not operating as efficiently
as it should because it can create a Bullwhip effect. (Issues in an Integrated
Supply Chain on pg. 439 in text)
a.
b.
c.
14. Describe what each of the following opportunities in an integrated supply chain
(starting on page 440) does and how it helps reduce the uncertainty in the supply
chain and therefore improve the potential performance of the overall chain:
a. Point of sale systems and accurate pull data
b. Lot size reduction
c. Single stage control of replenishment and radio frequency identification
tags
d. Vendor-managed inventories
e. Collaborative Planning, Forecasting and Replenishment
f. Blanket orders
g. Standardization
h. Postponement
i. Drop shipping
15. Page 448 of your text mentions ethics within the supply chain. Is Apple doing a
good job of establishing standards for its suppliers? What do you think Apple
should do differently? How will your suggestion impact Apple’s operations
strategy?