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Introduction to Supply Chain Management

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Introduction to Supply Chain Management

Page 1 of 8
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What is A Supply Chain?
!  The

system of suppliers, manufacturers,
transportation, distributors, and vendors that exists
to transform raw materials to final products and
supply those products to customers.

!  That

portion of the supply chain which comes after
the manufacturing process is sometimes known as
the distribution network.

Introduction to Supply Chain Management
IEE 534 Supply Chain Modeling & Analysis Lecture Slides
Dr. Esma S. Gel
1

+

3

A typical supply chain

IEE 534 SCMA, Prof. Esma S. Gel, CIDSE, ASU

+

Intro. to Supply Chain Management

4

What is Supply Chain Management?
“…a set of approaches utilized to efficiently integrate
suppliers, manufacturers, warehouses, and stores, so
that merchandise is produced and distributed at the
right quantities, to the right locations and at the right
time, in order to minimize system-wide costs while
satisfying service level requirements.”

Suppliers

Manufacturing

Distribution

Channels/retailers

End users

Materials, products, services, information, money

Supply chain activities
Design
Manufacturing
Procurement
Planning and forecasting
Order fulfillment
IEE 534 SCMA, Prof. Esma S. Gel, CIDSE, ASU

Distribution
Intro. to Supply Chain Management

!  Observations:

SCM considers every facility that has an impact on cost and
plays a role in making the product conform to customer
requirements
!  The objective is to be efficient and cost-effective across the entire system
!  SCM encompasses the firm’s activities at many levels – strategic, tactical, operational
! 

IEE 534 SCMA, Prof. Esma S. Gel, CIDSE, ASU

Intro. to Supply Chain Management

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The Goal in Supply Chain Management

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Customer

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Goal in SCM: Profitably match supply
and demand
SUPPLY

MATCH

DEMAND
Product development
Pricing
Promotions

Inventory management
Production planning
Scheduling
!  Buffering

! ...
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Introduction to Supply Chain Management
IEE 534 Supply Chain Modeling & Analysis Lecture Slides
Dr. Esma S. Gel
1
+What is A Supply Chain?
!The system of suppliers, manufacturers,
transportation, distributors, and vendors that exists
to transform raw materials to final products and
supply those products to customers.
!That portion of the supply chain which comes after
the manufacturing process is sometimes known as
the distribution network.
IEE 534 SCMA, Prof. Esma S. Gel, CIDSE, ASU
2
Intro. to Supply Chain Management
+A typical supply chain
IEE 534 SCMA, Prof. Esma S. Gel, CIDSE, ASU
3
Suppliers Manufacturing Distribution Channels/retailers End users
Materials, products, services, information, money
Supply chain activities
Design Manufacturing Procurement
Planning and forecasting Order fulfillment Distribution
Intro. to Supply Chain Management
+What is Supply Chain Management?
“…a set of approaches utilized to efficiently integrate
suppliers, manufacturers, warehouses, and stores, so
that merchandise is produced and distributed at the
right quantities, to the right locations and at the right
time, in order to minimize system-wide costs while
satisfying service level requirements.
!Observations:
!SCM considers every facility that has an impact on cost and
plays a role in making the product conform to customer
requirements
!The objective is to be efficient and cost-effective across the
entire system
!SCM encompasses the firm’s activities at many levels –
strategic, tactical, operational
IEE 534 SCMA, Prof. Esma S. Gel, CIDSE, ASU
4
Intro. to Supply Chain Management