Why are processes important in terms of managing logistics? Suggest how the processes of plan, source, make, deliver and return might differ in the case of the two factories Simple and Complex described in section 3.3.

Value in a supply chain

1 Explain what is meant by the term value in a supply chain. How can value best be measured in a supply chain context?

2 Why are processes important in terms of managing logistics? Suggest how the processes of plan, source, make, deliver and return might differ in the case of the two factories Simple and Complex described in section 3.3.

3 What are the advantages of cutting the ‘total cost cube’ in different ways? Summarize the different perspectives on logistics costs provided by fixed/variable, direct/indirect and engineered/discretionary costs, and by activity-based costing