Subject: Supply Chain Management Topic: Exam I Part II.

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Business Exam
1 The anticipatory business model is one that requires businesses to predict customer demand because of the lack of information on customer purchasing behavior. This led to businesses to develop wrong forecasts and pile up unwanted inventory.
On the other hand, the responsive business model aims to eradicate any use of forecasts and achieves this by planning and exchanging information quickly with members of the supply chain.
Responsiveness has become popular because it offers a lot of advantages. First, businesses can exclusively customize products on small orders. This is because the customer is no longer a passive participant as the Internet facilitates direct access and communication with the business. Due to the availability of low-cost information, businesses can avoid the high risk and high cost of using forecasts.
2 Blockchain makes it easier and safer for businesses to monitor and track transactions. This is valuable to the customer because their orders are protected and no party can manipulate the system so as to disadvantage the customer. The customer trusts the business more and is therefore at ease. Another advantage is that blockchain protects customers from purchasing counterfeit products. Tracking provides convenience to the customer who is aware of where his order is during shipment.
3 Procurement performance cycles consist of activities that maintain the flow of materials into a manufacturing or distribution facility. It may be similar to the customer order cycle but shipments are larger and cycles take more time. It is also cheaper to maintain materials inventory compared to finished goods. The last difference is there are fewer suppliers than customers.
Manufacturing support performance cycle is the logistics of production. It allows maintenance of orderly and economic flow of materials to support production schedules. Because they are internal to the firm, they are seldom affected by behavioral uncertainty.
Customer accommodation performance cycle are associated with customer orders. Forecast accuracy must ameliorate to reduce uncertainty. The firm must focus on flexibility and responsiveness to overcome uncertainty of customers.
4 Transactional marketing is where companies focus on short-term relations with customer. These relations or transactions should be successful to improve revenue and profit.
Relationship marketing is different from transactional marketing in that its focus is on long-term relations with participants in the supply chain. They range from customers to suppliers.
5 CPFR should be used when it is hard to predict demand, forecast accuracy is low, tradi...