Q: 3PLVS4PL :1PL - First-Party Logistics An enterprise that sends goods or

products from one location to another is a 1PL. 2PL - Second-Party

Logistics An enterprise that owns assets such as vehicles or planes to
transport products from one location to another is a 2PL. 3PL - Third-
Party Logistics:maintains management oversight, outsources operations
of transportation and logistics to a provider who may subcontract out
some or all of the execution. .4PL - Fourth-Party Logistics 1management
of logistics activities 2 execution across the supply chain. 3 A
manufacturer will use a 4PL to essentially outsource its entire logistics
operations.Q:Risk of using third party: 1)the process is broken
2)Underestimation of the cost of conditions 3)Reduced supplier contact
4)Loss of internal capability and growth in third party power 5)Leakage
of sensitive data and information 6Ineffective contracts. Q:How Do third
party increase the supply chain surplus? Third parties increase the SC
surplus effectively if they are able to aggregate SC assets or flows to a
higher level than a firm itself! 1Capacity aggregationInventory
aggregation 2Transportaion aggragation by transportation
intermediaries 3Transportaion aggragation by storage intermediaries 4
Warehousing aggregation 5 Procurement aggregation 6 Information
aggregation 7 Receivables aggregation 8 Relationship aggregation Lower
costs and higher quality

Q:RM for perishable assetsAny asset that loses value over time is
perishable Examples: high-tech products such as computers and cell
phones, high fashion apparel, underutilized capacity, fruits and
vegetables Two basic approaches:Dynamic Pricing: Vary price over time
to maximize expected revenue. Overbooking: Overbook sales of the
asset to account for cancellations.» Airlines use the overbooking most»
Passengers are “offloaded” to other routes» Offloaded passengers are
given flight coupons» This practice is legal.Q:RM for Seasonal Demand
Seasonal peaks of demand are common in many SCs\– Most retailers
achieve a large portion of total annual demand in December»
Amazon.com*Off-peak discounting can shift demand from peak to
nonpeak periods * Charge higher price during peak periods and a
lower priceduring off-peak periods.Q:RM for Bulk and Spot Customers
Most consumers of production, warehousing, and transportation assets
in a supply chain face the problem of constructing a portfolio of long-
term bulk contracts and short-term spot market contracts– Long-term
contracts for low cost (advantage=fixed low price,Disadvantage:being
wasted if not utilized)– Short-term contracts for flexibility(adv=never
being wasted,dis:higher price) Q:What contributes to the bullwhip
effect?*Disorganization between each supply chain link; with ordering
larger or smaller amounts of a product than is needed due to an over or
under reaction to the supply chain beforehand.*Lack of
communication:difficult for processes to run smoothly. Managers can
perceive a product demand quite differently *Free return
policies:customers may intentionally overstate demands due to
shortages and then cancel when the supply becomes adequate again
*Order batching; *accumulating the demand first.* Companies may
order weekly or even monthly. *Price variations – special discounts and
other cost changes can upset regular buying patterns; buyers want to
take advantage on discounts offered during a short time period.Q:What
is RFID? RFID works better than barcode? RFID stabds for Radio
Frequency Identification.1Speed: RFID is tremendously faster than
barcode scanning 2Function: RFID allows for accurate inventory in
adverse conditions 3Accuracy: RFID is more accurate than barcodes in
most real-world situations Q:sustainability can be divided 3 distinct
categories? 1)reducing risk and improving the financial performance of
the supply chain 2)attracting customers who value sustainability
3)Making the world more sustainable Q:designing distribution network?
1)Manufacturing storage with direct shipping*low trancportation
cost*high facility cost*high inventory cost retailer*no order tracking
needed EX:wall-Mart and JC penny 2)manufacturer distribution storage
with direct shipping and in-transit merge *mergers increase facility
costs*high response time*retailler is an information collector* EX:Dell
merges a Dell PC with a sony flat screen 3)Distributer storage with
package carrier delivery*high inventory cost*less information
cosrt*faster response*Lower transportation cost for manufacturer
EX:Amazon 4)Manufacturer storage with customer pickup *warehouse
delivers to customers*warehouse are located closer to consumers
*processing cost are high EX:Milk ,Grocery delivery Q:Suppy chain macro
process.? 1)Supplier relationship management (Key processes:)*Design
Collaboration*Source*Negotiate*Buy*Supply Collaboration.There is a
natural fit between ISCM and SRM processes.2)Internal Supply Chain
Management. Includes all processes involved in planning for and
fulfilling a customer order.(processes:)*Strategic Planning*Demand
Planning*Supply Planning*Fulfillment*Field Service.There must be
strong integration between the ISCM and CRM macro processes.

Customer Relationship Management. The processes that take place

between an enterprise and its customers downstream in the supply
chain(Key processes:)Marketing*Selling*Order
management*Call/Service center