Intro to Supply Chain Rutgers Chapter 1

What is a Supply Chain?

Any organization offering a product or a service has a supply chain. Products and Services are created from materials, equipment, labor, time, money, and other resources.

Logistics

that part of supply chain that plans, implements, and controls flow and storage of goods, from point of origin to point of consumption

The purpose of supply chain management is to ____________________

ensure that demand is met

Supply Chain Management

the coordination of a network of independent of a network of independent organizations involved in creating a desired product or service, where the partners function together as one seamless organization

Four foundations of supply chain

Operations Management, Supply Management, Logistics Management, Integration

Operations Management

involved managing internal resources

Supply Management

involves all of the supplies and suppliers that you need to run your business

Logistics Management

involves all of the movement and storage of products and materials within the supply chain, whether the flow is forward or reverse.

Integration

involves all of the enabling systems, software packages, processes,policies, etc to facilitate the complete integration of the functions of management

Efficient supply chain model

designed to minimize cost and to maximize capacity utilization

Functional Products

are low margin and have stable demand, high inventory turnover, high volume, and are readily available from multiple sources

Responsive supply chain model

is designed to respond quickly to market demand with minimal stickouts

Innovative Products

are newly developed products with high margins, volatile demand, short product lifecycles, and relatively less competition than functional products

In order to be successful companies must bring key suppliers and key customers into their processes

True