FSN 400 Lecture Notes - Lecture 11: Discount Window, Denim, Supply Chain
7 Apr 2016
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Document Summary
Management of flow of materials, information and funds from across the entire supply chain. Supply chain is a series of links and shared processes that exist between suppliers and consumers. Benefits of supply chain management: reduce uncertainty along the chain, proper inventory levels in the chain, minimize delays, eliminate rush (unplanned) activities, provide superb customer service, major contributor of success. Problems of supply chain management (reasons of supply-demand mismatch: excessive level of inventory created by unpredictable demand, difficulty in forecasting accurately because of the high speed of change in the marketplace, 3. Increasing problems with obsolescence caused by short product lifecycles: 4. Growing demand of shorter lead times from customers. The firm adopts a standard price for its products, regardless of where they are sold. A geocentric firm may set a standard pricing policy in the home country currency, so that the host country prices varies as the exchange rate changes.
