Here is this book's explanation of the "supply chain":
"A supply chain consists of all stages, directly or indirectly, involved in satisfying a customer issue. Supply chain contains not only to manufacturers and suppliers, but also carriers, resellers, and customers themselves.
A supply chain is dynamic and involves the constant flow of information, production and resources between the different stages. Each step in the supply chain performs various processes and interact with other stages in the supply chain. "
A typical supply chain can mean a variety of different phases, such as:
• Customers
• Resellers
• Wholesalers/distributors
• Manufacturers
• Component/raw material suppliers.
Some supply chain has all the stages but some have less, according to the company's environment. Each step could be a market or a hierarchy (Please reference materials in first class). In the Internet supply chain management, the designer must analyze the environment identifies the stages and types.
The purpose of a supply chain
In a supply chain generates every step a value. And the purpose of each supply chain is to maximize the total value generated. The value of a supply chain generates is the difference between what the final product is worth to the customer supply chain and the effort put in to fill the customer's request.
Supply chain profitability is the total profit is shared across all supply chain stages not only the maximum profit. We have to look at the entire chain's profits. The higher the supply chain profitability, the more successful the supply chain.
I stress this once again, "Supply chain management is about the management of flows between and among stages in a supply chain to maximize overall profitability".
Decision phases in a supply chain
A supply chain requires three phases of building. These phases are strategy or design phase, planning ...
