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Discussion About The Supply Chain Integration

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Discussion About the Supply Chain Integration
Introduction
The supply chain indicates the supply and demand network made up of the raw materials suppliers, manufacturers, wholesalers, and the ultimate consumers (ARNDT, 2004). The supply chain management is the vital concept in the modern management. In the supply chain management, the supply chain integration is just an important management model. The supply chain integration just realizes higher value and competitive advantages of the whole supply chain through coordinating the businesses process and cooperating within the organization and among the different organizations (LEE, 2000). It does not only facilitate the coordination of the business processes in the supply chain, but …show more content…

There are several uncertainties in the beer supply chain. The uncertainty in the demand is a typical and basic one. Because of the intense competition and continuously changing customer demand, it becomes pretty hard to master the exact demand information in the various levels of the supply chain (MASON & TOWILL, 1998). Just on account of the uncertainty of the demand in the supply chain, the purchase and inventory become uncertain too. The reason is that each company in the supply chain just purchase the raw materials and arrange the inventory according to the demand from the lower level of the supply chain. Just by virtue of the uncertainty of the demand information, the demand deviation will be enlarged from the lower level of the supply chain to the higher one. The uncertainty in the supply chain is still called the bullwhip effect (LEE et al., 1997). Meanwhile, the uncertainties in the demand will still result in the uncertainty in the production because many manufacturers just make their production scheme according to the demand information. Thus, the uncertainty in the demand will lead to the production’s uncertainty directly. Apart from the uncertainties in the demand, purchase and inventory, in the supply field, there still exist some uncertainties. In the modern supply chain, the connections among the different levels are pretty tight, and emergent problems in any level of the supply chain will lead to the delay the whole supply

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