BU395 Lecture 11: Chapter 11 - Supply Chain Management
Document Summary
Supply chain: sequence of organizations their facilities and activities that are involved in producing and delivering a product. Sequence begins with suppliers of raw materials all the way to the consumer. 2 kinds of movement in these systems: physical movement of materials (generally at end of system, exchange of information and money (generally at beginning of system) Word chain" signifies the importance of a close relationship and integration between supplier and a customer such as a manufacturer and a retailer. Objective of a supply chain is to integrate production activities between organizations so the supply chain can act as 1. Supply chain management: collaboration of supply-chain companies and coordination of their activities so that market demand is met as efficiently and effectively as possible. Recently a number of factors have made it more desirable for companies to actively manage their supply chains: Jit production and lean have emerged as cost reducing ways of producing goods for consumers.
