SCM mgt of all activities that facilitate the fulfillment of a customer order for a mfd good to achieve satisfied

customers at a reasonable cost Suppliers Mfg plant regional warehouse retail store customers The Bullwhip Effect is the order amplification in the supply chain. This occurs when members of the chain order up to buffer its own inventory. The SCOR MODEL Plan Developing a strategy that balances resources with requirements

Source Procuring goods and services to meet planned or actual demand Make Transforming goods and services to a finished state to meet demand. Deliver Managing orders, transportation, and distribution to provide the goods and services. Return Customer returns, maintenance, dealing with excess goods Supply chain strategies Push system produces goods in advance of customer demand using a forecast sales and moves them through the supply chain Pull system produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages. Supply Chain Practices 1. 2. 3. 4. Postponement Channel Assembly Drop Shipping Electronic ordering and Fund transfers

Location Decisions Vendor Selection Stage 1: Vendor Eval create vendor criteria

Stage 2: Vendor Dev t. Vendor integration and vendor training Stage 3: Negotiations - Cost-Based Price Model, Market-based price model, competitive bidding Logistics Purpose of Logistics Mgt Cost of shipping