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Supply Chain ManagementChapter 11

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The Need for Supply Chain Management

The need to improve operations. Increasing levels of outsourcing. Increasing transportation costs. Competitive pressures. Increasing globalization. Increasing importance of e-business. The complexity of supply chains. The need to manage inventories.

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The Bullwhip Effect

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Global Supply ChainsOutsourcing

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Benefits of Effective Supply Chain Management

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Elements of Supply Chain Management

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Logistics

Movement within a FacilityIncoming and Outgoing ShipmentsDistribution Requirements Planning3-PLReverse Logistics

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E-Business

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Creating an Effective Supply Chain

Requirements for a Successful Supply Chain

Trust. Effective communication. Supply chain visibility.Event management capability.Performance metrics.

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Supply Chain Operations Reference (SCOR) model metrics

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RFID Technology

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CPFR

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Steps in Creating an Effective Supply Chain

Develop strategic objectives and tactics. Integrate and coordinate activities in the internal portion of the chain. Coordinate activities with suppliers and with customers. Coordinate planning and execution across the supply chain. Consider the possibilities of forming strategic partnerships.

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Purchasing

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The Purchasing Cycle

Purchasing receives the requisition. The requisition includes (a) a description of the item or material desired, (b) the quantity and quality necessary, (c) desired delivery dates, and (d) who is requesting the purchase.

Purchasing selects a supplier. Purchasing places the order with a vendor. Monitoring orders. Receiving orders.

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Supplier Management

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