SUPPLY CHAIN MANAGEMENT
In today’s global market, managing supply chain becomes key factor for the successful business and Supply Chain Management (SCM) is a key strategic factor for increasing organizational effectiveness and cost-effectiveness. Inventory management is an important area and represents one of the most significant opportunities for cost savings in an industry. Inventory at different points of the supply chain has serious impact on the cost and performance. The scenario considered in the supply chain model has nodes in different stages with many suppliers, manufacturers, distributors, retailer operating under the continuous review policy. Supply Chain Management (SCM) is 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. Recently, however, there has been an increasing attention placed on the performance, design, and analysis of the supply chain as a whole. While managing a supply chain, decisions are made at three levels: strategic (long-term), tactical (medium-term), and operational (short term or day-to-day decisions). The operational decisions focus on controls and performance measures such as inventory investment, service level, quality, cost, etc. ORGANO:
Our chosen company uses the Supply Chain which is in combination, as the factory itself manufactures the water and purifies it in its final form and then sells them to the consumers directly. However, it acquires its raw materials from its suppliers such as bottles, lids and chemicals, then processes the water and runs it through the process and then delivers the final product to the consumer.
Now this supply chain is an efficient in nature as it helps to reduce the cost and minimize the lead time to a great extent. Since the...
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