computer science

Supply chain network

Supply chain network is a computer science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Supply chain network rather than just read about it. In short: A supply-chain network (SCN) is an evolution of the basic supply chain. Due to rapid technological advancement, organizations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organizations, this constitutes a supply-chain network.

Key takeaways

Supply chain network belongs to computer science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Supply chain network to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Supply chain network from memory before moving on to harder problems.

Reference excerpt

A supply-chain network (SCN) is an evolution of the basic supply chain. Due to rapid technological advancement, organizations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organizations, this constitutes a supply-chain network. A supply-chain network can be used to highlight interactions between organizations as well as to show the flow of information and materials across organizations. Supply-chain networks are now more global than ever and are typically structured with five key areas: external suppliers, production centers, distribution centers (DCs), demand zones, and transportation assets.

Overview Supply-chain network management may involve several types of information systems including Order Management Systems, Warehouse Management System, Transportation Management Systems, Strategic Logistics Modeling, Inventory Management Systems, Replenishment Systems, Supply Chain Visibility, and Optimization Tools. Emerging technologies and standards such as the RFID and the GS1 Global Standards can support the identification and tracking of goods throughout the Supply Chain Networks in a real time manner. Supply‑chain‑visibility platforms track raw‑material sourcing, production processes, inventory levels, shipment status and delivery schedules.

Supply-Chain Network Design A supply-chain network can be strategically designed in such a way as to reduce the cost of the supply chain; it has been suggested by experts that 80% of supply chain costs are determined by location of facilities and the flow of product between the facilities. Supply chain network design is sometimes referred to as 'Network Modelling', due to the fact a mathematical model can be created to optimize the supply-chain network. Companies have been led to modify their basic supply chain, investing in the tools and resources to develop an improved SCN design that takes into account taxation regulations, new entrants into their industry and availability of resources, has resulted in more complex network designs. Designing a SCN involves creating a network that incorporates all the facilities, means of production, products, and transportation assets owned by the organization or those not owned by the organization but which immediately support the supply-chain operations and product flow. The design should also include details of the number and location of facilities: plants, warehouses, and supplier base. Therefore, it can be said that a SCN design is the combination of nodes with capability and capacity, connected by lanes to help products move between facilities There is no definitive way to design a SCN as the network footprint, the capability and capacity, and product flow—all intertwine and are interdependent. Following on from this, there is also no single optimal SCN design, in designing the network there is an apparent trade-off between responsiveness, risk tolerance and efficiency.

Reverse Supply-Chain Network Design A new requirement for 'reverse supply-chain network design' has arisen from the environmental impact of end-of-life goods. This particular network design addresses logistical issues such as collection, processing and recycling of end-of-life goods. Companies that design both forward and reverse supply-chain processes together, with recycling & disposal in mind, have been noted to have the greatest success. Through this, organizations can support goods from production to disposal creating a 'closed-loop system'.

Examples of reverse supply network design Bosch is a company that capitalizes on this closed-loop system by building sensors into their power tool motor. Bosch can quickly assess the state of a motor reducing the cost of inspection and disposal, thereby increasing their profit margin on refurbished power tools.

Supply-Chain-Network Risk Analysis A key part of designing the supply-chain network is ensuring the network is versatile enough to cope with future uncertainties. The uncertainties associated with supply-chain networks fall within two categories, Endogenous uncertainty and Exogenous uncertainty.

Endogenous uncertainty An uncertainty can be categorized as 'endogenous' when the origin of the risk is within the supply-chain network itself, such as market volatility or technological turbulence.

Exogenous uncertainty An uncertainty can be categorized as 'exogenous' when the origin of the risk is external to the supply-chain network. Exogenous uncertainties can be further categorized; ongoing risks such as economic volatility, can be described as a 'continuous risk'. 'Discrete' events refer to infrequent events that could disrupt the supply-chain process, such as natural disasters.

Risk management By distinguishing between these types of uncertainty, an organization can decide the best approach to risk management. A company has a very limited ability to prevent exogenous uncertainty. The risk to the supply-chain network can be minimized by being well prepared for potential events. Endogenous uncertainty can be somewhat mitigated with precautions such as regular communication between an organization and supplier.

See also Document automation Supply chain collaboration

External links

References

Illustrations

Worked examples

Example 1 — a first encounter with Supply chain network

Start with the simplest possible case. Write down what Supply chain network claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In computer science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Supply chain network before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Supply chain network ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Supply chain network

In research: Supply chain network appears in computer science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Supply chain network in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Supply chain network is common in secondary-school and first-year university syllabi. It links to neighbouring topics Radio-frequency identification, Supply chain management, so understanding it makes those chapters shorter.
In everyday life: Look for Supply chain network outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Supply chain network in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Supply chain network means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Supply chain network out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Supply chain network in simple terms?

Why does Supply chain network matter?

Because it connects several computer science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Supply chain network?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Supply chain network.