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Supply Chain Management Strategy, Planning, and Operation
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers, and even customers themselves. Within each organization, such as a manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.
Consider a customer walking into a Wal-Mart store to purchase detergent. The supply chain begins with the customer and his or her need for detergent. The next stage of this supply chain is the Wal-Mart retail store that the customer visits. Wal-Mart stocks its shelves using inventory that may have been supplied from a finished-goods warehouse or a distributor using trucks supplied by a third party. The distributor in turn is stocked by the manufacturer (say, Procter & Gamble [P&G] in this case). The P&G manufacturing plant receives raw material from a mater of suplies, ho may comporation tomery Timeo Pekang where. For example charing
manufacture the packaging from other suppliers. This supply chain is illustrated in Figure 1-1, with the arrows corresponding to the direction of physical product flow.
A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages. In our example, Wal-Mart provides the ct, as well as pricing and availability information, to the
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