supply chain management

Examples of supply chain management in the following topics:

• Inventory Types

  • The term is used in production and supply chain management.
  • Optimal production management aims to minimize work in process.
  • A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.
  • In a supply chain management flow; the finished goods of a supplier can constitute the raw material of a buyer.

• Impacts of Forecasting on a Business

  • In preparing financial forecasts, firms should always assume they will be reviewed by a bank manager, regulatory agency, or investor.
  • One such aspect is Supply Chain Management.
  • Forecasting can be used in Supply Chain Management to make sure that the right product is at the right place at the right time.

• Inputs to the Production Schedule

  • The term is used in production and supply chain management.
  • Optimal production management aims to minimize work in process.
  • In a Supply chain management flow, the finished goods of a supplier can constitute the raw material of a buyer.
  • Time: The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this lead time.
  • Uncertainty: Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods.

• Just-in-Time Technique

  • But JIT relies on other elements in the inventory chain.
  • Small or individual lot sizes reduce lot delay inventories, which simplifies inventory flow and its management.
  • A company without inventory does not want a supply system problem that creates a part shortage.
  • Supplies come in at regular intervals throughout the production day.
  • Just-in-time operation can leave suppliers and downstream consumers open to supply shocks and large supply or demand changes.

• Seasonal Production

  • Inventory management in seasonally impacted businesses can become quite complex, as the accuracy of inaccuracy of forecasts can have substantial impacts on overall profitability.
  • In an ideal world, a business would avoid the need for inventory through perfect operational management and completely accurate projections.
  • Time - No supply chain is perfect, and often enough time lags can ruin potential business opportunities.
  • Uncertainty - Supply and demand are not perfectly predictable.
  • An important aspect of seasonal inventory management is the concept of perishable goods.

• Role of Financial Markets in Providing Feedback to Management

  • Financial markets can provide feedback to management by showing signals of the demand to supply funds to that enterprise.
  • Management often has imperfect information about its own business, especially its business' value in the outside world .
  • These various audiences can provide feedback to management, such as when the stock price rises or declines.
  • Here a group may be providing feedback to management.
  • Describe how financial markets can provide feedback to a company's management

• Benefits of Inventory Management

  • Improved inventory management can lead to increased revenue, lower handling and holding costs, and improved cash flows.
  • Inventory management is primarily about specifying the shape and percentage of stocked goods.
  • It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials.
  • The intent of inventory management is to continuously hold optimal inventory levels.
  • Inventory management also can help companies improve cash flows.

• Overview of Merchandising Operations

  • In the supply chain, merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays.
  • In the United Kingdom, for example, there are a number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support for new stores.

• ABC Technique

  • The ABC analysis is an inventory categorization technique often used in material management wherein accuracy and control decreases from A to C.
  • The ABC analysis is a business term used to define an inventory categorization technique often used in material management.
  • The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls.
  • Uniform Purchase: When you apply equal purchasing policy to all 4,000 components, example weekly delivery and re-order point (safety stock) of two-week supply assuming that there are no lot size constraints, the factory will have a 16,000 delivery in four weeks and the average inventory will be 2.5 weeks supply.
  • Weighed Purchase: In comparison, when weighed purchasing policy applied based on ABC class, example C class monthly (every four weeks) delivery with re-order point of three-week supply, B class Bi-weekly delivery with re-order point of two-week supply, A class weekly delivery with re-order point of one-week supply, total number of delivery in four weeks will be (A 200x4=800)+(B 400 x2=800) + (C 3400x1=3400)=5000 and average inventory will be (A 75%x1.5weeks)+(B 15%x3weeks)+ (C 10%x3.5weeks)= 1.925 week supply.

• Dangers Involved in Inventory Management

  • Inventory management is primarily about specifying the size and placement of stocked goods.
  • Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods.
  • The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns, and defective goods and demand forecasting.
  • Inventory management will be more complicated as moderate inflation and seasonality gets involved.