: Supply Chain Management Is Primarily of Interest to Manufacturing Firms

The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

In an article published on the Harvard Business Review website we see that “a factory needs to be flexible and respond to customer orders quickly” (Upton 1995). As the global market for products is growing factories need to be able to keep up with the demand of products in many more countries than they had in years past. Managers have to make decisions on whether or not to expand a factory or build a new factory and the decision between the two have large differences in cost. Forecasting can help managers decide if they should expand or not expand. Capacity does not need to be crowded because that can lead to decrease in quality of products and can cause underproduction. Capacity decisions are one of the toughest decisions manager have to

Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay

Manufacturing support performance cycles serve as the logistics of production. These functions maintain orderly and economic flow of materials and work-in-process inventory to support production schedules. The goal is to support manufacturing requirements in the most efficient manner. These are internal cycles to the firm, thus they are rarely affected by behavioral uncertainty. Customer accommodation performance cycles are those associated with processing & delivering customer orders. They link customers through timely & economical product availability. Physical distribution integrates marketing and manufacturing efforts. To improve the effectiveness forecast accuracy must improve to reduce uncertainty.

According to Michael Porter’s concept about value chain, “activities within the business companies add value to the product and service that the business organization or companies produces”. The idea of the value chain is based on the process view of organization, the idea of seeing a manufacturing firm as a system, made up of subsystems each with inputs transformation process and output. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and

A distribution chain also known as value chain can be described as a set of interdependent organizations or businesses involved in making a product or service available, from producer to end customer (Kotler, et al., 2012).

Many companies produce products from parts of raw materials that are purchased from suppliers, till these products are reach the markets and presented for the customers, then you have the supply chain starting from the purchase of raw material from different areas , through the manufacturing steps and stages till is being sold by the consumer. Some of supply chains are well defined and easy to determined, while there are other supply chains complex to analyze. However, supply chains vary with the size of the facility such as; complexities, performance, abilities, flexibility, quality, speed, dependability and cost of preparing goods for manufacturing and the chain length distribution. So the supply chain is a network of wholesalers, retailers, distributors, workers in the transport, storage facilities, suppliers, and manufacturers who participate in the production, delivery and sale of the product to the last consumer. A supply chain is a group of facilities that coordinate activities among it and to avoid the competitors. Moreover, to ensure the supply chain management is operating efficiently and generating the highest level of customer

The supply chain is a system made amongst different companies producing and distributing the product. Specifically, the supply chain contains the steps it takes to deliver goods or services from the supplier to the customer.

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

According to our class text Supply Chain Management’s goal is to create fast, efficient, and low-cost network of business relationships to get a company’s product from concept to market. In order to understand the goal we must know that the supply chain is the process the raw materials of a product go through in order to be available to the consumer. The relationships that the business creates are needed in order to create the product, each process the product goes through creates value, the supply chain is often called the value chain. Internet technologies are increasingly making the supply chain management process much more efficient and worth the initial investment. The supply chain management life

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)

Supply chain: Supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction) through to the end user all well as the associated information flows. Material and

A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable.