Supply chain Mangement
Chapter 1_The Concepts of Supply Chain Management
1
The Concepts of
Supply Chain Management
Content
1.1 Introduction
1.2 Definition of a Supply Chain
1.3 Decision Phases in a Supply Chain
1.4 Process View of a Supply Chain
1.5 The Importance of Supply Chain Flows
1.6 Tutorial Questions
Learning Objectives
After reading this chapter, you will be able to:
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1.1
Describe a supply chain and define supply chain management.
Define the different organizations that participate in any supply chain.
Describe the cycle and push/pull views of a supply chain.
Explain the framework for matching products and industries with supply chain strategies.
Classify the supply chain macro processes in a firm.
Identify the three key supply chain decision phases and explain the significance of each one.
Discuss the goal of a supply chain and explain the impact of supply chain decisions on the success of a firm.
INTRODUCTION
This chapter will provide a conceptual understanding of what a supply chain is and the various issues that need to be considered when designing, planning, or operating a supply chain.
1.2
DEFINITION OF A SUPPLY CHAIN
A supply chain is the set of value-adding activities that connects a firm’s suppliers to the firm’s customers. It consists of all parties involved, directly or indirectly, in fulfilling a customer request.
A customer may be the final customer of the finished product or service, or a downstream operation that uses the output of one process as the input to another. Three types of flows occur throughout the supply chain: (1) product, (2) information, and (3) funds, as illustrated in Figure 1.1. These flows travel both upstream (to customers) and downstream (to suppliers) within the supply chain.
The network of organizations (both upstream and downstream) cooperates to improve the flows of material and information between suppliers and customers at the lowest cost and the highest speed.
1
The Concepts of
Supply Chain Management
Content
1.1 Introduction
1.2 Definition of a Supply Chain
1.3 Decision Phases in a Supply Chain
1.4 Process View of a Supply Chain
1.5 The Importance of Supply Chain Flows
1.6 Tutorial Questions
Learning Objectives
After reading this chapter, you will be able to:
•
•
•
•
•
•
•
1.1
Describe a supply chain and define supply chain management.
Define the different organizations that participate in any supply chain.
Describe the cycle and push/pull views of a supply chain.
Explain the framework for matching products and industries with supply chain strategies.
Classify the supply chain macro processes in a firm.
Identify the three key supply chain decision phases and explain the significance of each one.
Discuss the goal of a supply chain and explain the impact of supply chain decisions on the success of a firm.
INTRODUCTION
This chapter will provide a conceptual understanding of what a supply chain is and the various issues that need to be considered when designing, planning, or operating a supply chain.
1.2
DEFINITION OF A SUPPLY CHAIN
A supply chain is the set of value-adding activities that connects a firm’s suppliers to the firm’s customers. It consists of all parties involved, directly or indirectly, in fulfilling a customer request.
A customer may be the final customer of the finished product or service, or a downstream operation that uses the output of one process as the input to another. Three types of flows occur throughout the supply chain: (1) product, (2) information, and (3) funds, as illustrated in Figure 1.1. These flows travel both upstream (to customers) and downstream (to suppliers) within the supply chain.
The network of organizations (both upstream and downstream) cooperates to improve the flows of material and information between suppliers and customers at the lowest cost and the highest speed.