Assignment: Supply Chain Process

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Contents
Assignment: Supply Chain Process .............................................................................................................. 3
Introduction ............................................................................................................................................... 3
2. At which points along their supply chain do you think they hold their inventory? .............................. 3
References:................................................................................................................................................ 5

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Assignment: Supply Chain Process

Introduction: In order to meet the requirement of the provided task an attempt shall be shortly
undertaken to design a supply chain management project. This is a team work project assignment
and equal participation or involvement of the team member is considered in this respect. For the
purpose of designing a supply chain management the example of Samsung Electronics has been
selected. This popular electronic device manufacturing company with specialization in the
manufacture of mobiles and laptops is a Korean based business firm with its headquarter in
Samsung Town of Seoul. This organization was established in the year 1938 by Lee Byung as a
trading business organization (Samsung Electronics America, 2015). The project aims to
formulate the supply chain procedure with reference to this particular business organization. The
structure of this particular project designing assignment shall comprise seven distinct aspects.
The key points of consideration that will be included within this particular project are the
sourcing process, the manufacturing procedure, issues related with warehouse or inventory.
Apart from this the project shall also emphasize on the aspects like distribution of the particular
product and issues related with product return and product warranty policies
(Supplymanagement.com, 2015).

In addition to this the concerned project shall also put forward a number of mathematical
calculations in order to illustrate the overall business forecast with respect to the variable
situation of the business market. The rise and fall in market share of Samsung shall also be
illustrated for better understanding of the topic of discussion. Moreover the subsequent segment
of the project design shall also emphasize on the issues related with product manufacturing plan
and service capacity of the concerned business organization with special consideration towards
performing the Assembly Line Balancing for Samsung S6 Edge mobile series (Morris and
Pinto, 2007). Therefore it may be stated that this particular project designing task in aimed to
describe the different aspects of supply chain management procedure with Samsungs business
practices as an example.

2. At which points along their supply chain do you think they hold their inventory?
The provided flow diagram is an illustration of the supply chain procedure of Samsung business
organization. Similar to the supply chain procedure of other business firm Samsungs supply

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chain procedure is observed to follow a definite path. It is clearly evident from the provided flow
diagram the supply chain process has indicated the entire major segment that is essential for the
business practice. Starting with the sourcing process the supply chain procedure terminates at the
product return or product warranty issues. In order to address the particular question an attempt
shall be taken to analyze the product inventory system. Prior to this it is essential to understand
the fundamental concept of inventory. In every business organization there exist an inventory
that is designated as a place where the products manufactured y the particular business firm are
stored and management. The products stored in the inventory are usually the finished and packed
products that can be immediately dispatched for sales. The products from an inventory are
generally dispatched to different distributors who further make the product available for sale in
the retail stores, general shops and online stores (Lawrence and Klimberg, 2011).

Considering the given flow diagram it is observed that Samsung also own its inventory. In this
context it may be stated that after the product assemble event in China the company had opted to
develop inventory in Elk, Grove, and California. Apart from this it is also observed that UPS
and Fedex system are also incorporated in the inventory of this business organization. Hence it
may be further explained that Samsung had focused to hold its product inventory immediately
after the product assembly in China. The finished and packed goods from the inventories located
in Elk, Grove and California are made available for subsequent sales. The distributors of this
product make it available to the customer by online and offline process. As inventory cost is an
essential aspect in this respect the adaption to Economic Order Quantity (EOQ) model may be
considered wherein emphasis should be given towards estimating the least carrying cost of
product to the inventory (Bolstorff and Rosenbaum, 2012) . It is also evident that easier and
faster availability to the customer is also very essential in order to decide the inventory location.
As evident from the research journal that the customer concentration for the products of
Samsung is maximum in the United Stated it is a wise decide to establish the companys
inventory in the mentioned locations. Therefore faster distribution of the product is also made
feasible by selecting the mentioned locations for establishment of the companys inventory
(Choicesmagazine.org, 2015). The carrying cost of product for sales is also subsequently reduced
as the location of the inventory has been decided close to the business market demand. Hence it
is advisable for the company to establish its inventory that will be closer to the customer demand
market.

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References:

Bolstorff, P. and Rosenbaum, R. (2012). Supply chain excellence. New York: American
Management Association.

Choicesmagazine.org, (2015). Choices Article - Logistics, Inventory Control, and Supply

Chain Management. [online] Available at: http://www.choicesmagazine.org/2005-
4/supplychain/2005-4-14.htm [Accessed 23 Nov. 2015].

Lawrence, K. and Klimberg, R. (2011). Advances in business and management forecasting.

Bingley, U.K.: Emerald.

Morris, P. and Pinto, J. (2007). The Wiley guide to project technology, supply chain, &
procurement management. Hoboken, N.J.: J. Wiley.

Samsung Electronics America, (2015). Electronics & Appliances: Tablets, Smartphones,

TVs | Samsung US. [online] Available at: http://www.samsung.com [Accessed 23 Nov.
2015].

Supplymanagement.com, (2015). Supply Management | The procurement and supply

website. [online] Available at: http://www.supplymanagement.com/news/2014/samsung-
named-best-asia-pacific-supply-chain [Accessed 23 Nov. 2015].

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