BU395 Chapter Notes - Chapter 11: Bullwhip, Supply Chain, Safety Stock
Document Summary
A supply chain is a sequence of organizations, their facilities and activities that are involved in producing and delivering a product. The chain begins with suppliers of raw materials and extends all the way to the final customer. Supply chain management is collaboration and coordination of all components of the supply chain so that market demand is met as efficiently and effectively as possible. level of outsourcing. The factors that have made it desirable to manage supply chains include increasing: need to improve operations, globalization, e-commerce, need to manage inventories across the supply chain. Benefits of effective management of a supply chain include lower logistics and inventory costs, higher fill rate and faster deliveries. A company should outsource a part or a service when: it cannot produce the part or render the service at the same cost, quality, and delivery speed as a supplier because: of lack of knowledge/skills/machines/capacity/investment funds (e. g. , hi-bek.
