Interpretation: The methodology of improving the performance of the supply chain while reducing its costs is to be discussed.
Concept Introduction: Every organization needs timely and quality inputs in the form of materials, services, knowledge and information, etc. The organizations providing such inputs are termed as suppliers. This entire network of suppliers with the logistics is called the supply chain. The objective of the
Explanation of Solution
The performance of the supply chain means timely inputs at optimum cost.
The cost consists of the input costs, transportation costs, administrative costs, holding costs (of money and space). Thus all such costs need to be controlled and continually reduced while ensuring the output of the supply chain, i.e., inputs of the right quality in the right quantity and preferably just in time.
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Chapter 12 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- Explain how new technology and emerging trends are impacting the practice of supply chain management ?arrow_forwardExplain how may supply chain management assist a business in gaining a competitive advantage?arrow_forwardDiscuss the importance of knowledge in the supply chain and how it aids in the preparation and implementation of the supply chain.arrow_forward
- Discuss the strategic, tactical, and/or operational support that supply chain management provides to an organization.arrow_forwardHow can a disruption in Target’s supply chain cause problems for the company and its stakeholders? What strategies has Target used to effectively manage its supply chain?arrow_forwardSelect three types of supply chain risks and explain in-depth how supply chain managers can help mitigate these risks. That is, develop an action plan to mitigate these risksarrow_forward
- Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning