Supply chain strategies

12 important questions on Supply chain strategies

How did the manufacturing evolve from craft production to mass customization?

First craft production (shoemaker) -> mass production (T model) -> lean production (toyota) -> mass costumization (agile production)

What is the differnce between the push and pull mentality?

In a pushed mentality materials are produced according to a planned forecast and moved to the next stage of the supply chain. (MTS)

In pulled-based systems inventory is only produced and moved when this is required, and thus is more closely aligned with the actual demand.  (MTO)

How did the Toyota production system or lean production seek to eliminate waste? ( 7examples)

-Overproduction: producing too much and neccesity to hold inventory in warehouses ( Make-to-stock) while make-to-order is way more efficient.

- Waiting: poor planning and needing to wait for a machine to get available.

-Transportation: Trying to add value during the tranportation of products (Sterilising medicines)

-Inapropriate processing: Losing time due to products who all enjoy the same level of processing while this isn't necessary for each product.

-Unecessary inventory: Inventory brings costs with it.

- Unnecessary motion: transporting a product from X to Y to come back to X.

-Defects: it causes delays which is a waste of time.
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What are the 6 main principles of lean consumption?


- Solve the customer’s problem completely

- Don’t waste the customer’s time

- Provide exactly what the customer wants

- Provide what’s wanted exactly where its wanted

- Provide what’s wanted where its wanted exactly when its wanted

- Continually aggregate solutions to reduce the customers time and hassle (after Womack & Jones, 1991)

What is an agile supply chain?


The agile supply chain is a demand-pull chain designed to cope with volatile demand, it is structured so to allow maximum flexibility.

It is enabled by mass customisation which on its turn is enabled by a production philosophy known as postponement.

What is the postponement philosophy in mass customisation?

To change the process design to allow postponement of final product customisation as far downstream as possible. E.G. only packaging a product when it has been ordered by a consumer.

What is a customer order decoupling point? (CODP)


The CODP indicates how far (upstream in a productionand marketing chain) a customer order penetrates the production or distribution process of the supplier of a product or service.

The main questions to be asked here are:

­Where are the inventories held?
­Where the customer order is placed and known to parties in production process?


­Downstream = inventory is held close to the customer side.
­Upstream = inventory is held closer to the source (supplier side).

How important is Customer order decoupling point (CODP) ?

It has a big influence on how to organise the logistics . Before CODP the production was based upon demand forecast, this was a huge risk for the company. After CODP production is based on consumers order, company has no inventory risk.

What are the 5  Customer order decoupling points?

1. make-to-stock (local)
ex. Carrefour

2.make-to-stock (central)
ex. doctor tools

3. assemble-to-order
ex. cars

4. make to order
ex. hospital machines

5. purchase and make-to-order
ex. new build house

What is mass customisation?

Process of delivering varied products which are modified to a customers need. (Postponement)

What is an omnichanel business model?


Omnichannel is a cross-channel business model that companies use to improve their customer experience. Companies that use omnichannel contend that a customer values the ability to be in constant contact with a company through multiple avenues at the same time .

What are the 4 combined logistics strategies?

Short lead time+Predictable demand= Lean, continuous replenishment

Short lead time+Unpredictable demand= Agile, Quick response

Long lead time + Predictable demand= Lean, planning and execution

Long lead time+ unpredictable demand= Leaagile production/ logistics postponement

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