Jessica Marchesano
Unit 1 IP
MGT436-0603B-01
Supply chain management can be defined as the integration of the links to the supply chain which begin with supplier to manufacturer to wholesaler to retailer to the consumer. Integrating them in a manner from planning through implementation to the continued management of them. It can also be defined as managing the flow of the business from the raw materials coming in all the way through the finished good being used. Four major links of the supply chain or components are demand, logistics, manufacturing, and supply. Although these four different components play different roles in supply chain management they all have one common goal which is to increase lead times in the most cost effective manner possible.
Demand begins with the customers and what product they want. It comes from the end user who purchases in the store to the retailer selling the product. If the shelves empty fast or customers continue to ask for a good in the latter part of a season demand is considered high for that particular product. Through these demands a forecast is created, usually by the sales department, for future sales of particular goods. Upon having knowledge of this demand the company can prepare itself for production and cash flow situations ahead of time. This demand also creates inventory levels at particular warehouses based on region. Again the company can be prepared for what is needed and where. Demand can also be predicted through trend or history of a retailers buying over the past years. With demand seasonal and economical scales must be considered as well. If a product is based on ei ...