Friday, 21 April 2017

How the supply chain works?

The main goal of supply chain management is to increase the throughput while reducing the inventory and the operating expense. The throughout is the rate the sales take place with the end customer. In some markets the customer will pay top dollar in order to receive a high level of service and in other markets the customer will want to pay as little as possible for a product.

Yesterday we looked at the five areas where supply chain managers need to make decisions: productions, inventory, location, transportation and information. It is essential to understand each of the drivers as it directly affects the supply chain. Then it’s necessary to develop appreciation for the results that can be achieved by using different combinations of the drivers.

No comments:

Post a Comment