Supply chain management (SCM) is very important and effective to all companies. David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi defines supply chain management as “a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize systemwide costs while satisfying service level requirements.” Supply chain management, also called logistics network, includes suppliers, industrialized centers, warehouses, distributions centers, and retail outlets, as well as unprocessed materials, work-in-progress stock, and finished goods that run linking the facilities.
Function of SC:
Managing the global supply chain can involve some of the most complicated set of processes within any organization. For even the most basic supply chains, it is also the source of massive cost-saving potential. A well-managed supply chain will not only be efficient, but will enhance a company’s cash position while dramatically improving the quality of the customer experience.
Demand Planning & Forecasting:
Determining what to make requires sophisticated systems that that take into account customer needs, supplier capabilities and production capacity. Demand Planning & Forecasting systems allow companies to use the best available information to make intelligent decisions regarding production plans.
Production Planning & Scheduling:
For complex operations, it is a major effort to plan production given capital equipment, constraints and customer expectations. Production Planning & Scheduling systems optimize the use of an organization’s capital equipment, reduce work in progress, ...