BU435 Chapter Notes - Chapter 2: Supply Chain, Service Level, Efficient Frontier
Document Summary
How is strategic fit achieved: understanding the customer & sc uncertainty: understand cr needs for each targeted segment. Required service level : b/c firm now has to handle unusual surges in demand: correlation b/w implied demand uncertainty & other attributes: 10% to 25: impact of supply source capability on supply uncertainty: Increase: key point: 1st step in achieving strategic fit b/w competitive & sc strategies is to understand customers & sc uncertainty. Uncertainty from cr & sc can be combined & mapped on implied uncertainty spectrum. Step 3: achieving strategic fit: ensure degree of sc responsiveness is consistent w/implied uncertainty, goal is to target high responsiveness for a sc facing high implied uncertainty & efficiency for sc facing low uncertainty. Bu435 textbook/lecture notes: finding zone of strategic fit: figure 2-5 p. 28, key point: match sc responsiveness w/implied uncertainty from demand & supply. Sc design & all functional strategies w/i firm must also support sc"s lvl of responsiveness.
