Essay on Understanding Supply Chain

2760 Words Feb 24th, 2013 12 Pages
Dr. Ch. V. V. S. N. V. Prasad Assistant Professor in Management BITS-PILANI, K. K. Birla Goa Campus

Learning Objectives
 Supply Chain  Supply Chain Management  Objective of a Supply Chain  Importance of Supply Chain Decisions

 Decision Phases in a Supply Chain
 Process Views of a Supply Chain  Supply Chain Macro Processes in a Firm

 Examples of Supply Chains
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Supply Chain
 Supply Chain is a network of various business entities

and processes linking suppliers, operations and customers.
 Business Entities  Supplier, manufacturer, distributor, transporters, retailers and customers.  Processes  It consists of all activities/processes
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V. V. S. N. V. Prasad

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Importance of Supply Chain Decisions
 Supply chain decisions have a large impact on the

success or failure of each firm because they significantly influence both the revenue generated and the cost incurred.  Successful supply chains manage flows of product, information, and funds to provide a high level of product availability to the customer while keeping costs low.

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MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad

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Decision Phases in a Supply Chain
 Supply chain decision phases may be categorized as

design, planning, or operational depending on the time frame over which the decisions made.
 Supply chain strategy or design  Supply chain planning  Supply chain operation

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MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad

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Decision Phases in a Supply Chain
 Strategic decisions  Relate to supply chain configuration  Long term impact lasting several years  Expensive to reverse  Support strategic objectives of the firm  Decisions include
 



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Locations and capacities of facilities Products to be made or stored at various locations Modes of transportation Types of Information systems to be utilized
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Decision Phases in a Supply Chain
 Planning decisions  Cover a period of a few months to a year  Definition of a set of policies that govern short-term

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