Chapter 1: Introduction to Operations and Supply Chain Management
Supply Chain Management
The active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage.
A network of manufacturers and service providers that work together to create products or services needed by end users. These manufacturers are linked together through physical flows, information flows, and monetary flows.
Activities or firms positioned earlier in the supply chain.
Activities or firms positioned later in the supply chain
A supplier that provides products or services directly to a firm.
A supplier that provides products or services to a firm’s first-tier supplier.
The use of computer and telecommunications technologies to conduct business via electronic transfer of data and documents.
Increasing competition and globalization
Customer demands are changing and new competitors are entering the markets.
Organizations must manage the relationships with their upstream suppliers as well as their downstream customers.
Coordinated Decision Making
Systems approach to management that considers the total impact of functional and channel partner decisions of the final customer.