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A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.
A supply chain responsiveness matrix is a tool that is used to analyze inventory and lead time within an organization. The matrix is one of a number of value stream mapping tools. [1] The matrix is represented by showing lead time along the x-axis and inventory along the y-axis. The result shows where slow moving stock resides.
an "extended" supply chain includes suppliers of the immediate supplier and customers of the immediate customer; an "ultimate" supply chain includes all of the organizations involved in the supply of the product or service. In each case, the flow of information and finances is part of the chain as well as the product or service. [10]
The concept of Quick Response Manufacturing (QRM) was first developed in the late 1980s by Rajan Suri, at the time professor of Industrial and Systems Engineering at the University of Wisconsin-Madison. Combining growing academic research in Time-based Competition (TBC) with his own observations from various lead time reduction projects, Suri ...
In the manufacturing environment, lead time has the same definition as that used in supply chain management, but it includes the time required to ship the parts from the supplier. Shipping time is included because the manufacturing company needs to know when the parts will be available for material requirements planning purposes.
The first theories focusing onto the bullwhip effect were mainly focusing on the irrational behavior of the human in the supply chain, highlighting them as the main cause of the bullwhip effect. Since the 90's, the studies evolved, placing the supply chain's misfunctioning at the heart of their studies abandoning the human factors. [5]
It takes longer for a push-based supply chain to respond to changes in demand, which can result in overstocking or bottlenecks and delays (the bullwhip effect), unacceptable service levels and product obsolescence. In a pull-based supply chain, procurement, production and distribution are demand-driven rather than to forecast.
Example of a supply-chain network. A supply-chain network (SCN) is an evolution of the basic supply chain.Due to rapid technological advancement, organizations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organizations, this constitutes a supply-chain network.