RMG 301 Chapter Notes - Chapter 11: Customer Service, The Sequence, Information System
16 Nov 2017
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Document Summary
Supply chain management: a supply chain is the sequence of organizations their facilities and activities that are involved in producing and delivering a product. The need for supply chain management: increasing competition during the last 3 decades, many organizations have adopted practices such as just in time (jit) and lean. As a result, they have cut much of the excess costs out of their operations. Opportunity now lies largely with their suppliers and customers: increasing outsourcing organizations are increasing outsourcing by buying goods or services instead of producing/providing them in house (called in sourcing). Shortages can severely disrupt timely production or sales, while excess inventories add unnecessary holding costs. Involves determining the number, location, capacity, products to produce and process types of the facilities. Information systems should also be able to communicate seamlessly. Tactical (planning)/operational activities: risk pooling holding (safety) stocks in one central location rather than in multiple regional locations closer to customers.
