Name: Lan Chuan

No:212301601

1. a) Supply Chain Surplus

=Customer Value-Supply chain cost
=Custom value - price of product + price of product-supply chain cost
When Custom value - price of product=Custom Surplus and price of product-supply chain

cost =supply chain profit

Then combining two conditions, we can prove that Supply Chain Surplus= Custom Surplus+

supply chain profit.

b) The (price) In (a) acts as an intermediate; that is, the addition or reduction of (price) does

not affect the overall formula but can change the formula, just as the catalyst in chemistry can

change the overall reaction when it is added to the chemical reaction but does not participate

in the chemical reaction.

Basic on the analyst above My answer will be no, but it doesn’t mean the price will not affect

the other aspects of the supply chain. Retail prices can play a key role in determining supply

chain efficiency and consumer surplus. For example, The lower the retail price, the higher the

supply chain efficiency and consumer surplus.

When the price is higher According to Supply Chain Surplus=Custom value - price of product

+ price of product-supply chain cost

The customer surplus reduce and supply chain profits increase, the partners get a larger share

of the supply chain surplus.

c) Responsiveness and efficiency are diametrically opposed. Supply chain efficiency requires

speed and large and unified orders. Responsive needs a slower speed, and sometimes it also

requires customized orders. When Responsiveness is higher if the customer value remains the

same and the cost is higher, and the price will be higher which means the customer surplus is

lower in the same way the supply chain profits will not change, the supply chain surplus will

be lower.
(2) According to the frontier, we can get a higher surplus if we keep trade-offs.
2.The primary supply chain process cycle includes four cycles: (customer order cycle),

(Replenishment cycle), (Manufacturing cycle), and（ procurement cycle）

As the picture shows below

(ResearchGate, n.d.)

b) The customer order cycle has the highest uncertainty Because of many small orders and is

Unpredictable.
procurement cycle has the highest scale of order
c) I want to recommend Amazon’s supply chain strategy; Amazon’s fast delivery

responsiveness is quick because almost every product and status can choose multiple delivery

options. For example, a $ 15-bed pillow from San Francisco would cost $5 and be delivered

within 4-5 days. When the order cost exceeds $25, delivery is free, but it takes 5-8 days to

receive. And Amazon can customize special cargo transportation for customers, such as

overseas transportation; Amazon provides a very convenient service. When customers spend a

certain amount of money to subscribe to the plan, the fast delivery service will quickly deliver

the goods to customers. Suppose customers do not subscribe to the plan. In that case, they

must pay high freight, which makes customers stick to Amazon very high and provides the

company with a stable capital flow to maintain fast delivery, which makes it highly efficient

for both customers and the company.

3.

Current strategy

3.2）When a product does not have a mature supply chain system, the response at this time is

ten yuan, which means that it is located at the lower part of the frontier, and the efficiency is

not high at this time. The efficiency is improved when the product is mature, with a complete

and mature supply chain system. The best combination may be a strategic choice, but it must

support the competitive strategy and customer needs

 4.

Supplier Manufacturer Retailer

stage stage stage

RESPONSIVE-NESS Supplier: low price Product Design: Pricing strategy:

making speed fast Standardized, flow- Customized service to
High quality and the based production and attract customers,
product should be assembly line brand effect
reliable. production to ensure Lead time strategy:
consistent product Shorten the delivery
quality cycle as much as
possible, and replace
SUPPLY CHAIN Manufacturing vehicles even if the
OBJECTIVE strategy: Maintain cost is enormous.
flexibility when
making products

Inventory strategy:
keep enough
inventory to keep
selling products even
if the supply chain is
in danger
EFFICIENT Supplier: Low raw Product Design: Pricing strategy:
material cost, short Made with the most Lower price as
product production cost-effective raw possible, Unmarked
cycle, standardized materials, with the sales
least cost to achieve
the best results
Lead time strategy:
Manufacturing Reduce the delivery
strategy: Low cycle as much as
depreciation rate, possible but not
high utilization rate, increase the cost. For
and long service life example, the delivery
of the equipment speed should be as
fast as possible
Inventory strategy: without changing the
lower cost keep less delivery g
inventory
=

Reference:
ResearchGate. (n.d.). (PDF) Strategic Value Creation in a Supply Chain. [online] Available

at:

https://www.researchgate.net/publication/292906342_Strategic_Value_Creation_in_a_Supply

_Chain.