FARE 3310 Chapter Notes - Chapter 11: Supply Chain Network, Vendor-Managed Inventory, Supply Chain

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3310
• Professor: Jamie Gruman

Document Summary

Supply chain- network of activities that delivers a finished product or service to customer. System of organizations, people, activities (transform raw materials and components into finished product), information and resources involved in moving product or service from suppler to customer. Competitive advantage may depend on close long-term strategic relationship with a few suppliers. Supply-chain management coordinates and manages all activities of the supply chain linking suppliers, transporters, internal departments, third-party companies and information systems. Reasons it is difficult to match supply and demand: Respond quickly to changing requirements and demand to minimize stockouts. Develop responsive system, with buffer stocks positioned to ensure supply. Use product designs that lead to low setup time and rapid production ramp-up. Minimize inventory throughout the chain to hold down costs. Shorten lead time as long as it does not increase costs. Share market research jointly develop products and options. Use modular processes that lend themselves to mass customization.