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Fifteen years years ago, the computer industry was characterized by delivery lead times of up to multiple weeks which was mainly because of the production

Fifteen years years ago, the computer industry was characterized by delivery lead times of up to multiple weeks which was mainly because of the production lead time being very long. Since then, customer requirements have changed resulting in a request for short delivery lead times and a large product portfolio. Producers have reacted to this by shifting the decoupling point upstream in the supply chain. In order to keep the business profitable they focused on: Internet technology to establish high-speed information exchange and have direct customer order information (thereby eliminating the dealer network); Product standardization and modularization (by using generic or modular inventory the final commitment to a specific customer order is postponed) ; close partnerships with suppliers that deliver the requested modules at the requested time and place; increased production/assembly flexibility; and fast transportation structures. Nowadays, computers are assembled to order and the requested configuration can be delivered within a few days. REQUIRED 1. In order to increase responsiveness computer firms reacted by relocating the decoupling point in their supply chains. Explain the terms responsiveness and decoupling and show how they achieved the task in the above case. [4 Marks]2. Close partnerships and strategic alliances are the aspirations of many supply chains. Explain the two terms and highlight three costs of poor coordination. [5 Marks]3. Discuss the SCM challenges computer companies in the above case study faced and how they overcame them. [5 Marks]4. Discuss the roles of supply chain management as highlighted in the case study above. [3 marks]5. Highlight three benefits of integrating IT in SCM today. [3 Marks]

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