RMG 434 Study Guide - Final Guide: Service Level, Profit Margin, Accounts Payable

• School: Ryerson University
• Department: Retail Management
• Course: RMG 434
• Professor: Janice Rudkowski

Document Summary

Supply chain: consists of all parties involved (directly or indirectly) in fulfilling a customer request; includes manufacturer, suppliers, transporters, warehouses, retailers, customers. Objective of every supply chain should be to maximize the overall value generated. The value of the final product to the customer can be estimated by the maximum amount the customer is willing to pay for it. Difference between value of the product and the price = consumer surplus. Difference between revenue generated from the customer and the overall cost across the supply chain = supply chain profitability. Effective supply chain management involves the management of supply chain assets and product, information and fund flows to grow the total supply chain surplus. The importance of supply chain decisions: supply chain design, planning and operation decisions play a significant role in the success or failure of a firm. To stay competitive, supply chains must adapt to changing technology and customer expectations.