Chapter 1
Introduction
The supply chain is an arrangement of associations included in filling a consumer demand (Chopr & Meindl, 2006).
The supply chain consists of raw materials procurement from the suppliers and items are manufactured at the manufacturing facilities to produce the finished products and transport it to the consumers. Figure (1.1) represents a standard structure of supply chain.
There are three integrated segments of a supply chain; upstream, where the procurement process occurs from external suppliers, midstream, where manufacturing and/or assembling processes occur, and downstream, where distribution and sales to the consumer occur. Figure (1.3) indicates these three integrated segments. The entire supply chain of any manufacturing facility consists of procurement, manufacturing, and distribution centers entities.
The objective of Supply Chain Management (SCM) is to match actions inside the supply chain to improve the supply chain’s competitive advantage and benefits to the ultimate consumer.
SCM takes into account suppliers, manufacturing plants, distributors, wholesale warehouses and retail stores. The general objective across the board is to get finished products to the consumer in the most cost-effective manner. Inconsistency in levels of consumer demand for a product greatly influences activities all along the supply chain. Moreover, the concept of Decoupling Point (DP) is a stock point related to replenishment and withdrawal.
Introduction
The supply chain is an arrangement of associations included in filling a consumer demand (Chopr & Meindl, 2006).
The supply chain consists of raw materials procurement from the suppliers and items are manufactured at the manufacturing facilities to produce the finished products and transport it to the consumers. Figure (1.1) represents a standard structure of supply chain.
There are three integrated segments of a supply chain; upstream, where the procurement process occurs from external suppliers, midstream, where manufacturing and/or assembling processes occur, and downstream, where distribution and sales to the consumer occur. Figure (1.3) indicates these three integrated segments. The entire supply chain of any manufacturing facility consists of procurement, manufacturing, and distribution centers entities.
The objective of Supply Chain Management (SCM) is to match actions inside the supply chain to improve the supply chain’s competitive advantage and benefits to the ultimate consumer.
SCM takes into account suppliers, manufacturing plants, distributors, wholesale warehouses and retail stores. The general objective across the board is to get finished products to the consumer in the most cost-effective manner. Inconsistency in levels of consumer demand for a product greatly influences activities all along the supply chain. Moreover, the concept of Decoupling Point (DP) is a stock point related to replenishment and withdrawal.