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SCM provides strategies and methods for integrating separate organizations. Lower inventories. Lower cost. Higher productivity. Greater agility. Shorter lead times. Higher profits . Greater customer loyalty.
Customer Forecasting
Predicting the quantity and timing of customer demand.
Processing Inventory
Meeting demand requirements while managing the costs of holding inventory.
Purchasing Suppliers
Managing supply and supplier relations
Location Logistics
Deciding the best way to move information & materials
Logistics
The part of supply chain involved with the forward and reverse flow of goods, services, cash, and information. The movement of materials, services, cash and information in a supply chain.
Logistic Types
Logistics types
Movement
Traffic management
Distribution
Develop strategic objectives and tactics Integrate internal activities Integrate activities with suppliers & customers Coordinate planning & execution across the supply chain. Forming of strategic partnerships.
Lot size-Inventory trade ff. Inventorytransportation cost trade- ff. Lead timetransportation cost trade-off. Cost-customer service trade-off
Response Time
Purchasing
Purchasing Interface
Operations Suppliers Legal
Design
Data Processing
Purchasing Cycle
Requisition received
Supplier selected
Order is placed
Monitor orders
Receive orders
Supplier Management