RSM370H1 Lecture Notes - Lecture 1: Fast Fashion
Document Summary
Time between store placing order and order being delivered. Allows for rapidly changing product offerings within a season. In a supply chain, products flow from upstream to downstream. Funds flow between neighboring entities along supply chain. Supply chain management entails managing supply chain flows and assets to maximize supply chain surplus/value in a sustainable manner. Each entity along supply chain has overlapping cycles. Push: firm must take on risk of making inventory decision and cost of holding inventory. Pull: customer has to wait for product to be made. Push processes are initiated by firm, pull processes are initiated by customer. Business strategy involves the value proposition of how needs of customers are satisfied. Must understand customer needs to achieve strategic fit. Implied demand uncertainty higher with shorter lead time/higher responsiveness to customer needs. Some goods have higher supply uncertainty than others.
