COMM 225 Chapter 11: Supply Chain Management (Production and Operations Management - Second Custom Ed for Concordia)
9 Dec 2016
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Supply chain - sequence of organizations (facilities and activities) involved in producing and delivering products. Activities: forecasting, product design, scheduling, purchasing, transportation, inventory management/warehousing, production, distribution/delivery, customer service. Two types of movement systems: physical movement of material (generally toward chain end the consumer, exchange of info and money (mainly toward chain start material source) Organizations can be part of multiple scs. Scs sometimes referred to as value chains, reecting concept that value added as goods process through chain. Scs or value chains typically comprise separate organizations. Scm - collaboration of supply-chain companies and coordination of activities so that market demand is met as eciently and eectively as possible. Competitive attributes (price, timeliness, quality, variety, and service) important for scs. 1. increasing competition: jit and lean production adopted, cutting excess costs: opportunity now lies largely with suppliers/customers. 2. increasing outsourcing - buying goods or services instead of producing or providing them in-house (called in-sourcing)
