All activities involved, directly/indirectly, in fulfilling customer request: includes suppliers, manufacturers, transporters, warehouses, retailers, customers. Supply chains = dynamic network systs that require effective coordination of info up and down supply chain. Scm as an operating discipline can be summarized as practice of these: performance excellence. Customer satisfaction at the lowest total cost: collaboration w/ supply chain partners. Network: simplified, one participant in each stage. Operating processes: ship beer, manage inventory, order beer. Participants typically cark the whip: game starts w/ steady demand, incr in demand is generated, induces variation in system, participants try to compensate errors are amplified. Variation reduction: reducing variation = primary objective os scm, sources of variation in supply chains not obvious in dynamic supply chain syst. Bullwhip effect: acting in isolation w/ limited info. Supply chain managers make decisions that are magnified upstream resulting in stockouts or overstock: factors contributing.