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• 2 Toward the theory of the supply chain

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• What are the six foundational premises of the theory of supply chain?

  1. The SC is a network
  2. The SC is a CAS
  3. The SC is relative
  4. There is a physical and a support SC
  5. The SC is bounded by a visible horizon
  6. The visible horizon is bounded by attenuation

• 2.1 The supply chain is a network

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• What is a node in a supply chain? Give some examples.

  An establishment/agent that has the ability to make decisions and maximise its own gains within the parameters in which it operates.
  For example, manufacturers, warehouses, transportation carriers, and financial institutions.

• What is a link in a supply chain? And what does it represent?

  A connection between two nodes. It represents transactions of the flow of materials, information, and/or finance between nodes.

• 2.2 The supply chain is a complex adaptive system

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• What is foundational premise 2 in the theory of supply chain?

  The supply chain as a network operates as a complex adaptive system, where every agent deals with the tension between control and emergence.

• What does control and emergence mean?

  • Agents can only control its supply chain within its visible boundaries.
  • Beyond the visible range, the agent has no choice but to accept what happens. 

  The collection of these agents form a supply chain as a self-organising, emergent CAS.

• 2.3 The supply chain is relative

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• What is a product in a supply chain?

  An input/output of the node (which has physical substance) that moves into/out of a node via a physical node of transportation.

• 2.4 There is a physical and a support supply chain

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• What is a physical supply chain?

  A physical supply chain consists of a node (an agent with a permanent physical location) where activities occur that add form, place, and/or time utility.

• What is a support supply chain? Name some examples.

  A support supply chain consists of nodes which support the physical supply chain of the product. The product does not flow through this chain.
  Some examples are financial institutions, brokers, truckload transportation, and insurance companies.

• What does the realisation of having a physical and support supply chain allow?

  It allows a more complete picture of how value-adding activities are organised in a supply chain.

• What is a hollow corporation in the supply chain?

  A hollow corporation is a firm that owns few, if any, physical nodes.