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SUPPLY REQUIREMENT (Key issues (Inventory control: levels of inventory to…
SUPPLY REQUIREMENT
Key issues
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Supply chain integration and strategic partnering: sharing the information and efficient use of the information for coordinatin business process to deliver a superior value to the customers.
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Product design: concerned with the design of the product and its impact on total cost of the product.
Customer value: the definition of customer value in an age of increasing consumer power. it is provide value to the customers and how will firms define the value.
Supply contracts: relationship between suppliers and buyers are established by means of supply contracts that specify pricing and volume discounts, delivery lead times, quality, returns and so forth.
Information technology and decision support system: is a critical enabler of effective supply chain management.
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Bullwhip effect
Definition: occurrence detected by the supply chain where orders sent to the manufacturer and supplier create larger variance then the sales to the end customer.
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the supply chain management issues concern activities of the firm at various levels of decision making, ranging from operational level to strategic level via tactical level