Toward the theory of the supply chain - The supply chain is bounded by a fuzzy horizon

4 important questions on Toward the theory of the supply chain - The supply chain is bounded by a fuzzy horizon

The horizon/visible boundary within a supply chain is based on the knowledge of the focal agent about:

  1. The existence of another node
  2. The location of that node
  3. The activities that occur within that node

What is attenuation? What does the process of attenuation do in the theory of supply chain?

The gradual loss of intensity of the flow of physical property. It suggests that the boundaries of the supply chain become less clear as the distance from the focal agent to other agents increases.

The distance of attenuation in the supply chain can be an characteristic of?

  1. Physical distance - the distance between two nodes.
  2. Cultural distance - even without knowing I know how the company works because of the same culture.
  3. Closeness centrality - the number of nodes (intermediaries) that separate the focal agent from another agent in the supply chain.
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What is foundational premise 6 of the theory of supply chain?

The visible horizon of the focal agent is sensitive to attenuation, where distance is based on factors including physical distance, cultural distance, and closeness centrality.

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