BU435 Chapter Notes - Chapter 3: South Carolina Highway 4, Electronic Data Interchange, Fixed Price
Document Summary
Actual physical locations in the sc network where product is stored, assembled, and fabricated. 2 major types of facilities: production sites and storage: inventory. Encompasses all raw materials, work in progress, and finished goods within a sc. Changing inventory policies can dramatically alter the sc"s efficiency and responsiveness: transportation. Entails moving inventory from point to point in the sc: information. Consists of data and analysis concerning facilities, inventory, transportation costs, prices, and customers throughout the sc. Potentially the biggest driver of performance in the sc b/c it directly affects each of the other drivers: sourcing. The choice of who will perform a particular sc activity: pricing. Determines how much a firm will charge for the goods/service that it makers available in the sc. Firms can increase responsiveness by increasing # of facilities, making them more flexible, or increasing capacity. Increasing the # of facilities increases facility and inventory costs but decreases transportation costs and reduces response time.
