Difference: SupplyChains (5 vs. 6)

Revision 62008-03-31 - MichaelOSullivan

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Supply Chains

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Introduction

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Ganesh and Harrison Ram Ganeshan and Terry P. Harrison. An Introduction to Supply Chain Management. Penn State University

This link didn't work for me - Lauren define a supply chain as follows:

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Ganesh and Harrison Ram Ganeshan and Terry P. Harrison. An Introduction to Supply Chain Management. Penn State University

define a supply chain as follows:

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.

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Decisions in a Supply Chain

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There are 3 types of decisions made in a supply chain, shown in Figure 2. As Figure 2 shows there is a hierarchy inherent in these decisions and the upper level decisions (at the top of the pyramid close bracket here - Lauren directly affect the lower level decisions, e.g., the monthly production plan at a manufacturing plant is directly affected by the decision about whether to build the plant or not, the daily production levels at a manufacturing plant are directly affected by the monthly production plan. Would it be better to use semicolons to separate longer ideas like those listed in the previous sentence? - Lauren However, the lower level decisions indirectly affect the upper level decisions, e.g., it is often cheaper to buy land to build a production plant in rural areas, but the day-to-day transportation costs from rural locations may be much higher.

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the monthly production plan at a manufacturing plant is directly affected by the decision about whether to build the plant or not;
the daily production levels at a manufacturing plant are directly affected by the monthly production plan.

However, the lower level decisions indirectly affect the upper level decisions, e.g., it is often cheaper to buy land to build a production plant in rural areas, but the day-to-day transportation costs from rural locations may be much higher.

Figure 2 Hierarchy of Supply Chain Decisions (adapted from Supply Chain Management

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The act of coordinating, making different people or things work together for a goal or effect.

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Integration of a supply chain is achieved by coordinating the behaviour of different entities, e.g., manufacturing plants, raw material suppliers, improve the performance of the supply chain as a whole. In the previous sentence you list two things then an action. Should the idea contained in "improve the... as a whole" be its own sentence? - Lauren General coordination describes the integration of different sectors of the supply chain, e.g., inventory and production planning, sales, distribution. Multi-plant coordination describes the integration of different sectors across several locations, e.g., the inventory and production planning for several different plants is coordinated.

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Integration of a supply chain is achieved by coordinating the behaviour of different entities, e.g., manufacturing plants, raw material suppliers, to improve the performance of the supply chain as a whole. General coordination describes the integration of different sectors of the supply chain, e.g., inventory and production planning, sales, distribution. Multi-plant coordination describes the integration of different sectors across several locations, e.g., the inventory and production planning for several different plants is coordinated.

By taking an integrated approach and using both general and multi-plant coordination a supply chain manager can significantly improve the overall performance of the supply chain.

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