BU395 Study Guide - Midterm Guide: Inventory Turnover, Electronic Data Interchange, Lead Time
Document Summary
Supply chain: the sequence of organizations their facilities and activities that are involved in producing and delivering a product or service. 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. Info and money come from the beginning of the chain, and at the end is the movement of the physical product. Bullwhip effect: demand/order variability gets progressively larger the further back in the supply chain the company is. Many retailers each with a little variability in their orders leads to more variability for a fewer number of wholesalers, can lead to more variability for a single producer. Causes are: large orders downstream, slow/erratic reactions to changes in demand upstream, mfg. discounts can lead to demand spikes. Benefits of supply chain management: higher inventory turnover, cost reductions from efficiencies, increased profits etc. Supply chain management activities: strategic (design) and tactical (planning)/operational.
