EBK ESSENTIALS OF MIS
12th Edition
ISBN: 8220101459305
Author: LAUDON
Publisher: PEARSON
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Chapter 9, Problem 2RQ
Explanation of Solution
Supply chain approach:
It is an activity that manages the movement of raw materials like services, cash into the organization via factories or warehouses to the end consumers. It also includes organizations that create and deliver products, data and services. It creates trust among their partners.
Supply chain management (SCM):
- Supply Chain Management is defined as design, planning, implementation and combination of all supply chain process.
- Supply chain management might help the customers (students), partners, distributors, suppliers have an organized system by which they could communicate with each other and can access the necessary data.
Components of Supply Chain: Some of the major components of supply chain are planning, sourcing, production, delivery, and return.
Supply chain management help reduce the bullwhip effect:
Bullwhip effect is an effect that happens if the data about the demand for a product gets biased as it transfers from one unit to other across the supply chain. It can be handled by decreasing hesitations about the demands and supplies when all the members in supply chain have correct and updated information.
Supply chain management provides value for a business:
Supply chain management helps an organization in many ways like improvement in product and material flow, seamless information flow, and enhanced financial flow.
Comparison between supply chain planning system and supply chain execution system:
| Supply chain planning system | Supply chain execution system |
| It aids the organization to produce demand predictions for a particular product, and also it helps to develop tracking and manufacturing plans for that product. | It governs the products flow via distribution centers and silos to make sure that the products are carried and delivered to the right places in an effective way... |
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