Introduction to Supply Chain Management
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2
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
+
5
The Goal in Supply Chain Management
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Customer
6
Goal in SCM: Profitably match supply and demand
SUPPLY
MATCH
DEMAND
Product development
Pricing
Promotions
Inventory management
Production planning
Scheduling
! Buffering
!
+
2
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
+
5
The Goal in Supply Chain Management
+
Customer
6
Goal in SCM: Profitably match supply and demand
SUPPLY
MATCH
DEMAND
Product development
Pricing
Promotions
Inventory management
Production planning
Scheduling
! Buffering
!