Instructor Manual: Wisner, Tan & Leong, Principles of Supply Chain Management – A Balanced Approach, 7th edition, © 2027 Cengage,
9798214057705; Chapter 1: Introduction to Supply Chain Management
Instructor Manual
Wisner, Tan & Leong, Principles of Supply Chain Management – A Balanced Approach,
7th edition, © 2027 Cengage, 9798214057705; Chapter 1: Introduction to Supply Chain
Management
TABLE OF CONTENTS
Purpose and Perspective of the Chapter......................................................................2
List of Instructor Downloads..................................................................................................................... 2
Chapter Objectives........................................................................................................2
Key Terms.....................................................................................................................2
Chapter Outline.............................................................................................................5
Additional Discussion Questions..................................................................................7
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
,PURPOSE AND PERSPECTIVE OF THE CHAPTER
This chapter defines the supply chain and supply chain management. A description of what the remaining
chapters will cover is provided. The importance of supply chain management (SCM) is explained, in
addition to the origins of SCM in the United States. The foundations of SCM are presented in terms of the
elements of supply, operations, logistics, and integration. Finally, the current trends in SCM are
presented: use of supply chain analytics, improving supply chain sustainability, and increasing supply
chain visibility.
LIST OF INSTRUCTOR DOWNLOADS
The following product-level supplements provide additional information that may help you prepare for
your course. They are available in the Instructor Resource Center.
A PowerPoint of the book chapter is available for download from the Instructor’s Resource
Center.
A solutions and answers guide for the book chapter is available for download from the
Instructor’s Resource Center.
CHAPTER OBJECTIVES
The following objectives are addressed in this chapter:
LO 1.1 Describe a supply chain and define supply chain management.
LO 1.2 Describe the objectives and elements of supply chain management.
LO 1.3 Describe local, regional, and global supply chain management activities.
LO 1.4 Describe a brief history and current trends in supply chain management.
LO 1.5 Understand the bullwhip effect and how it impacts the supply chain.
KEY TERMS
Big data: huge volumes of data generated because of the enormous rise in computing capabilities.
Bullwhip effect: the continuing cycle of erratic demand, causing forecasts to include safety stock
which in turn magnify supplier forecasts and cause production planning problems.
Business process reengineering: the radical rethinking and redesigning of business processes to
reduce waste and increase performance to enhance long-term competitive advantage.
Cold chain: refers to an alliance of companies that can monitor and protect the temperature of
perishable products to maintain quality and safety from the point of origin through the distribution to the
final consumer.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
,Customer relationship management: consists of the creation of alliances or partnerships with
customers; these long-term close relationships resulted in less finished products safety stock and better
use of resources.
Demand management: strategies and systems having the objective of matching available capacity to
demand, either by improving production scheduling, curtailing demand, using a back-order system, or
increasing capacity.
Distribution network: design of the facilities utilized for successful product delivery, including the
number, size, type, and location of regional or local warehouses.
Enterprise resource planning (ERP): client/server supply chain management software that
typically includes integrated supply chain management and e-commerce components.
Ethical and sustainable sourcing: purchasing from suppliers that are governed by environmental
sustainability and social and ethical practices.
First-tier customers: direct customers of the firm.
First-tier suppliers: direct suppliers of the firm.
Global supply chain: consists of having operations in foreign locations to supply to global markets.
Inventory visibility: order communication system enables management to be aware of inventory
status in the supply chain.
Lean production system: inventory management system based on operating with low inventory
levels, faster delivery, lower stockouts, and higher quality; also known as just-in-time or the Toyota
production system.
Logistics: delivery of products to customers through several different modes of transportation at the
right time, right quality, and right volume based on a high level of planning and cooperation between the
firm, its customers, and the various logistics elements employed (such as transportation, warehousing, and
repackaging).
Material requirements planning (MRP): software system for managing their inventories,
purchases, and production schedules.
Multi-channel fulfillment: allows consumers to shop for what they want, where they want, and
then have their purchases delivered quickly and consistently.
Operations management: purchasing, assembling, or processing the items into finished products,
inventory, and delivery of products; a foundation of supply chain management.
Radio frequency identification (RFID): system of scanning incoming cartons and pallets with
RFID tags to have in-store inventory visibility.
Reengineering: another term or business process reengineering.
Second-tier customers: the customers of the first-tier or direct customers of the focal firm.
Second-tier suppliers: the suppliers of the first-tier or direct suppliers of the focal firm.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Six Sigma quality management: strategic system to ensure continued quality compliance among
suppliers and with internal production facilities.
Starting conditions: the initial status of the supply chain in terms of setup and inventory status.
Strategic partnerships: closer working relationships with customers in terms of long-term, higher
volume sales.
Supplier certification: allows buyers to assume the supplier will meet certain product quality and
service requirements covered by the certification, thus reducing duplicate testing and inspections and the
need for extensive supplier evaluations.
Supplier evaluation: determination of the current capabilities of suppliers.
Supplier management: means encouraging or helping the firm’s suppliers to perform in some
desired fashion by assessing their current capabilities and then deciding how they need to improve.
Supplier relationship management: consists of utilizing smaller supplier bases and the
development of more long-term, trusting, mutually beneficial supplier relationships.
Supply chain: consists of sourcing parts and materials; as well as designing, producing, storing,
producing, and transporting goods and services.
Supply chain analytics: tools that harness data from internal and external sources to produce
breakthrough insights that can help supply chains reduce costs and risks.
Supply chain management: the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities, including coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers,
and customers.
Supply chain performance management: utilization of performance measurements along the
supply chain to help firms keep track of their process integration and supply chain management efforts.
Supply chain process integration: consists of trading partners in the supply chain working
together to make purchasing, inventory, production, quality, and logistics decisions that impact the overall
costs and profits of the supply chain.
Supply chain visibility: the ability of suppliers, manufacturers, business partners, and customers to
know exactly where their products are, at in point in the supply chain.
Supply management: strategic approach to purchasing.
Sustainability: broad term that includes protecting the environment, some aspects of social
responsibility, as well as financial performance.
Third-party logistics providers: companies that provide inbound and outbound shipping,
warehousing, and logistics services such as transportation, storage, documentation, and customs clearing
services.
Third-party logistics services: providing inbound and outbound shipping, warehousing, and
logistics services such as transportation, storage, documentation, and customs clearing services.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
9798214057705; Chapter 1: Introduction to Supply Chain Management
Instructor Manual
Wisner, Tan & Leong, Principles of Supply Chain Management – A Balanced Approach,
7th edition, © 2027 Cengage, 9798214057705; Chapter 1: Introduction to Supply Chain
Management
TABLE OF CONTENTS
Purpose and Perspective of the Chapter......................................................................2
List of Instructor Downloads..................................................................................................................... 2
Chapter Objectives........................................................................................................2
Key Terms.....................................................................................................................2
Chapter Outline.............................................................................................................5
Additional Discussion Questions..................................................................................7
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
,PURPOSE AND PERSPECTIVE OF THE CHAPTER
This chapter defines the supply chain and supply chain management. A description of what the remaining
chapters will cover is provided. The importance of supply chain management (SCM) is explained, in
addition to the origins of SCM in the United States. The foundations of SCM are presented in terms of the
elements of supply, operations, logistics, and integration. Finally, the current trends in SCM are
presented: use of supply chain analytics, improving supply chain sustainability, and increasing supply
chain visibility.
LIST OF INSTRUCTOR DOWNLOADS
The following product-level supplements provide additional information that may help you prepare for
your course. They are available in the Instructor Resource Center.
A PowerPoint of the book chapter is available for download from the Instructor’s Resource
Center.
A solutions and answers guide for the book chapter is available for download from the
Instructor’s Resource Center.
CHAPTER OBJECTIVES
The following objectives are addressed in this chapter:
LO 1.1 Describe a supply chain and define supply chain management.
LO 1.2 Describe the objectives and elements of supply chain management.
LO 1.3 Describe local, regional, and global supply chain management activities.
LO 1.4 Describe a brief history and current trends in supply chain management.
LO 1.5 Understand the bullwhip effect and how it impacts the supply chain.
KEY TERMS
Big data: huge volumes of data generated because of the enormous rise in computing capabilities.
Bullwhip effect: the continuing cycle of erratic demand, causing forecasts to include safety stock
which in turn magnify supplier forecasts and cause production planning problems.
Business process reengineering: the radical rethinking and redesigning of business processes to
reduce waste and increase performance to enhance long-term competitive advantage.
Cold chain: refers to an alliance of companies that can monitor and protect the temperature of
perishable products to maintain quality and safety from the point of origin through the distribution to the
final consumer.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
,Customer relationship management: consists of the creation of alliances or partnerships with
customers; these long-term close relationships resulted in less finished products safety stock and better
use of resources.
Demand management: strategies and systems having the objective of matching available capacity to
demand, either by improving production scheduling, curtailing demand, using a back-order system, or
increasing capacity.
Distribution network: design of the facilities utilized for successful product delivery, including the
number, size, type, and location of regional or local warehouses.
Enterprise resource planning (ERP): client/server supply chain management software that
typically includes integrated supply chain management and e-commerce components.
Ethical and sustainable sourcing: purchasing from suppliers that are governed by environmental
sustainability and social and ethical practices.
First-tier customers: direct customers of the firm.
First-tier suppliers: direct suppliers of the firm.
Global supply chain: consists of having operations in foreign locations to supply to global markets.
Inventory visibility: order communication system enables management to be aware of inventory
status in the supply chain.
Lean production system: inventory management system based on operating with low inventory
levels, faster delivery, lower stockouts, and higher quality; also known as just-in-time or the Toyota
production system.
Logistics: delivery of products to customers through several different modes of transportation at the
right time, right quality, and right volume based on a high level of planning and cooperation between the
firm, its customers, and the various logistics elements employed (such as transportation, warehousing, and
repackaging).
Material requirements planning (MRP): software system for managing their inventories,
purchases, and production schedules.
Multi-channel fulfillment: allows consumers to shop for what they want, where they want, and
then have their purchases delivered quickly and consistently.
Operations management: purchasing, assembling, or processing the items into finished products,
inventory, and delivery of products; a foundation of supply chain management.
Radio frequency identification (RFID): system of scanning incoming cartons and pallets with
RFID tags to have in-store inventory visibility.
Reengineering: another term or business process reengineering.
Second-tier customers: the customers of the first-tier or direct customers of the focal firm.
Second-tier suppliers: the suppliers of the first-tier or direct suppliers of the focal firm.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Six Sigma quality management: strategic system to ensure continued quality compliance among
suppliers and with internal production facilities.
Starting conditions: the initial status of the supply chain in terms of setup and inventory status.
Strategic partnerships: closer working relationships with customers in terms of long-term, higher
volume sales.
Supplier certification: allows buyers to assume the supplier will meet certain product quality and
service requirements covered by the certification, thus reducing duplicate testing and inspections and the
need for extensive supplier evaluations.
Supplier evaluation: determination of the current capabilities of suppliers.
Supplier management: means encouraging or helping the firm’s suppliers to perform in some
desired fashion by assessing their current capabilities and then deciding how they need to improve.
Supplier relationship management: consists of utilizing smaller supplier bases and the
development of more long-term, trusting, mutually beneficial supplier relationships.
Supply chain: consists of sourcing parts and materials; as well as designing, producing, storing,
producing, and transporting goods and services.
Supply chain analytics: tools that harness data from internal and external sources to produce
breakthrough insights that can help supply chains reduce costs and risks.
Supply chain management: the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities, including coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers,
and customers.
Supply chain performance management: utilization of performance measurements along the
supply chain to help firms keep track of their process integration and supply chain management efforts.
Supply chain process integration: consists of trading partners in the supply chain working
together to make purchasing, inventory, production, quality, and logistics decisions that impact the overall
costs and profits of the supply chain.
Supply chain visibility: the ability of suppliers, manufacturers, business partners, and customers to
know exactly where their products are, at in point in the supply chain.
Supply management: strategic approach to purchasing.
Sustainability: broad term that includes protecting the environment, some aspects of social
responsibility, as well as financial performance.
Third-party logistics providers: companies that provide inbound and outbound shipping,
warehousing, and logistics services such as transportation, storage, documentation, and customs clearing
services.
Third-party logistics services: providing inbound and outbound shipping, warehousing, and
logistics services such as transportation, storage, documentation, and customs clearing services.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
