Supply Chain Chapter 1,2 & 3

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Chapter 1


The stages involved in the supply chain of a can of soda from a convenience in the typical situation would be the supplier, manufacturers, wholesaler, retailer (the convenience store) and the consumer. The supplier supplies the manufacturer with the raw materials involved in producing the cans of pop (aluminum, syrup, etc.). Once produced, the manufacturer sends bulk shipments of the product to the wholesaler, who sends shipments to the retailer. The flows between each of the stages are the financial flows, material flows, information flows. Each stage pays the previous stage for the goods and sells to the next with their added margin (financial flows). The raw materials and finished products move up through the supply chain (material flows). In an efficient supply chain, there would be information passed through each stage as well (information flow).


The stages in the supply chain of purchasing a book at bookstore are the same as purchasing a can of soda, these are the suppliers, manufacturer, distributor, retailer, and consumer. The procurement cycle involves the various suppliers and the manufacturer. The suppliers would include a paper (timber) supplier, ink supplier, paper/plastic packaging supplier, as well as the author’s publisher. This cycle would not know of demand, so this cycle would be a push process.

The manufacturing cycle occurs between the manufacturer and the distributor. After the books are printed at the manufacturer they would be sent to the supplier. Shipments to the distributor would be made by replenishment orders from the retailer, so this is a push process.

The replenishment cycle is between the distributor and the retailer. The replenishment order from the retailer is made in order to maximize profit by using economies of scale. This cycle is based on predicted demand it is a push process.

An end customer placing order through a retailer is part of the customer order cycle. If it is an online...
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