BADM*2060 Lecture Notes - Lecture 10: Keiretsu, Vertical Integration, Carrying Cost
Document Summary
It is the management of activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system. Basically planning, organizing, directing and controlling the flow of goods, services, information and money. The objective of supply chain management is to build a chain of suppliers that focuses on maximizing value to the ultimate customer. The objective is effective and efficient low cost operations. To determine daily cost of holding, (daily cost of holding the product = (annual holding cost x product value)/365) To reduce supply chain risk, react to disruptions in : processes (raw material, quality, logistics and etc. , controls (management, metrics, scheduling and etc, environment (custom duties, tariffs, political issues and etc. ) Goals of the purchase functions (the 7 rights) A choice between producing a component or service in-house or purchasing it from an outside source. Transferring a firm"s activities that have traditionally been internal to external suppliers.
