SCM 301 Chapter Notes - Chapter 1: Operations Management, Progressive Corporation, Final Destination 5
13 Jan 2017
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Chapter 1 introduction to operations and supply chain management. Most organizations function as part of larger supply chains: a supply chain is a network of manufacturers and service providers that work together to create products or services needed by end users. They can include raw materials, intangible needs, and even information, such as demand forecasts. Operations are often highly dependent on the quality and availability of inputs: nearly all operations activities require coordination with other business functions, including engineering, marketing, and human resources, operations management activities are information and decision intensive. These flows go both up and down the chain. The supply chain must be very efficient, as the final price of the good must cover all of the costs involved plus a profit for each participant in the chain. Supply chain management is the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage.
