What Is Supply Chain Management?
We, at No 1 Assignment Help some times asked by the MBA students about How To Write Supply Chain Management Case Study and what does it mean. SCM, Supply chain management may be defined as the management of the supply-related issues of goods and services and comprise all processes that convert raw materials into final products through different methods. It also needs the involvement of active streamlining of supply-chain activities of a business and the effort to maximize the value of the customer and earn a competitive advantage in the business sector.
SCM takes care of handling the entire flow of production of a good or service, beginning with the raw material after processing along the production routes to deliver the final product to the consumer.
The Main Parameters Are :
- Managing Inventory and
- Authorizing Supplier Payments.
Why Is It Necessary To Write A Good Supply Chain Management Case Study?
It has been observed that a tradition followed by the companies in a network of supply chain focus primarily on their system and pay little attention to their suppliers as well as their customers. Despite that, globalization and the development of close relationships among various companies have created shifts in modern business management practice. This also includes the management of the supply chain network. Since it is expensive to hold inventory, an effective way of inventory management is a critical issue in the process of supply chain operations.
The importance of a list is necessary due to Uncertain demand and economies scale of operation. Although the difference in functions of a company may not agree on the level of inventory. The Marketing activity may like to maintain the level of stock at the higher side, so customers’ demand can be fulfilled quickly. The production department may like to keep the inventory high to support lengthy production flow patterns and also to understand economies of scale. The department of Finance may prefer to maintain a low stock to minimize asset levels. So, the question of conflict that what level of stock should be kept for simultaneous satisfaction of the demands of the customer and optimum operational costs.
What Is The Aim Of Writing Supply Chain Management Case Study?
- Identification of the critical factors that affect inventory level and costs.
- Investigate how to keep a high level of service while maintaining inventory levels at the lower side.
The issue of demand the forecast does not seem to be accurate as of the fluctuation of need during a different time. Moreover, the time of customer order is typically brief, but production always leads to constant time. Therefore, Business house factories generally face two kinds of situations, namely, production is unable to meet demand or supplies cross the market. Employing the analysis of the case quantitatively and qualitatively, we may use it as an example to solve problems related to inventory.
By Tradition, It Is Found The Supply Chain Management Is Viewed As Vertical Integration Of :
- Manufacturing, and
- Purchasing Departments by an Organization.
The Supply Chain May Be Divided Into Two Integrated Processes:
- Production Planning Inventory Control Process, and
- Distribution and Logistics Process.
Advanced modeling approaches have been used to improve the efficiency of supply chains. Business houses found that too much inventory is associated with high risks and high costs and should be avoided. The channel from suppliers and manufacturers to distributors and retailers suggest different kinds of stock. The prime intention of companies to hold inventory is unexpected changes in customer demand, uncertainty in the quantity and quality of supplies, lead times, and economies of scale of operation. Considering the importance of inventory, it is vital to define factors that determine inventory costs. There is some trade-off between the value of investing in and holding excess inventory.
Repeat order policies were proved to be optimal in a continual supply chain with batch order. VMI, Vendor Managed Inventory, is a supply chain management tool. In a VMI partnership, it is not the customers or buyers, but the vendors or manufacturers decide when to replenish inventory. Alternatively, the buyers’ or consuming organization’s inventory level is determined by the vendors or manufacturers through shared information and electronic data exchange.
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