BU395 Study Guide - Midterm Guide: Yde, Pliers, National League
Document Summary
Supply chain- sequence of organization, facilities and activities that are involved in producing and delivering a product: movement of material (towards end of chain) infor- mation and money (towards beginning of chain) Supply chain management- collaboration and coordi- nation of all components of the supply chain so that market demand is met as efficiently as possible. Need for supply chains: improve operations- achieve improved quality, wringing out excessive costs, outsourcing-buying goods or services instead of producing or providing them in-house, bullwhip effect- demand variability is progressively larger moving upstream through a supply chain. Magnification of variability in orders in the supply chain from retailers orders -> wholesaler"s orders -> manu- facturer"s orders: causes- using large order quantities downstream (ret. ), slow reactions to changes in demand upstream (dc) due to lack of demand visibility and large lead times. Retailers- inflating orders in anticipation of receiving a portion of them.
