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supply chain
Planning and managing inventories in a supply chain
Designing and planning transportation networks
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Understanding the
Supply Chain
Learning Objectives
1. Discuss the goal of a supply chain and explain
the impact of supply chain decisions on the
success of a firm.
2. Identify the three key supply chain decision
phases and explain the significance of each
one.
3. Describe the cycle and push/pull views of a
supply chain.
4. Classify the supply chain macro processes in a
firm.
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.
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chain
Includes movement of products from suppliers to
manufacturers to distributors and information,
funds, and products in both directions
May be more accurate to use the term supply
network or supply web
Typical supply chain stages: customers,
retailers, distributors, manufacturers, suppliers
All stages may not be present in all supply
chains (e.g., no retailer or distributor for Dell)
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Importance of
Supply Chain Decisions Cases
in 2010
Seven-Eleven Japan, 1 billion sales in 1974 to
3 trillion in 2009
Dell, $56 billion in 2006, adopted new supply
chain strategies
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objectives
Supply chain design decisions are long-term and
expensive to reverse must take into account
market uncertainty
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short-term operations
Fixed by the supply configuration from
previous phase
Starts with a forecast of demand in the
coming year
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Cycle View
of Supply
Chain
Processes
Figure 1-3
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Figure 1-5
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Push/Pull View of
Supply Chain Processes
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Push/Pull View of
Supply Chain Processes
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Figure 1-7
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Figure 1-8
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