CIPS L6M9 - Supply Network Design

✅The three characteristics of a valuable resource are:

Scarcity– The resource isnot widely available.

Originality– It isunique and not easily imitated.

Immovability– The resourcecannot be easily transferredto another company.

🚫Incorrect options:

Replicable: A valuable resource shouldNOTbe easily copied.

Optimisable: A resource is valuable when it isalready optimised, not just when itcan beimproved.

(See LO 2.2, p.102)

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This isfinite loading. There is a finite amount of buttons that can be produced. Finite means there is a limit. This is the opposite ofinfinite loading, where a team can take on additional tasks/orders without any issues.Maximum loadingis similar to finite loading, but the difference is subtle—maximum is the amount of work that is possible in a given time period, but no limits are placed on this. Infinite loading, a strict limit is placed. (See p.181)

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VRIO analysishelps an organisationidentify internal resourcesthat give it acompetitive advantage.

VRIO stands forValue, Rarity, Imitability, Organisation—factors that determine whether a resourcecan sustain a competitive edge.

Itdoes notfocus on benchmarking (C) or performance monitoring (B).

(LO 2.2, See p.103)

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Abasic supply chainconsists ofthree key roles:

Supplier→ Provides materials or products to the organisation

Organisation→ The business that processes/manages the product

Buyer→ The final customer who purchases the product

Distributor and Manufacturerexist in morecomplex supply networks, but they are not part of the simplest supply chain model. (See LO 1.1, p.3)

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Asupply chainis asimple, linearsystem where products move from A → B → C.Asupply networkismulti-layered, withhorizontal and vertical connections, making itmore complex.

Dimension difference (B):Supply networks have largerdimensions, with multiple supply channels and flows.

Complexity (C):A supply network ismore intricatethan a single supply chain.

Number of players (D):Supply networks involvemore entitiesthan a simple supply chain.

Profit made (A) is incorrect, asboth supply chains and supply networks can be profitable.

Location of players (E) is incorrect, as both supply chains and networks can belocal or global.

(LO 1.1, See p.8)