FACULTY OF COMPUTER SCIENCE AND MATHEMATICS

INTRODUCTION TO E-BUSINESS (ITS450)

SUPPLY CHAIN

Sharifah Syahirah bt Syed Muhd Kamal Nur Hakma bt Juhari Nur Farahain bt Supian(2009249956) (2009600066) (2009627474)

DefinitionDefinitionA system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.

CHRISTOPHER [1998]CHRISTOPHER [1998]

A network of connected and interdependent organizations mutually and co-operatively working together to control, manage and improve the flow of material and information from suppliers to end users.

JOHANSSON [2002]JOHANSSON [2002]A system whose constituent parts include material suppliers, production facilities, distribution services and customer linked together via the feedforward flow of materials and the feedback flow of information

Part Of Supply ChainPart Of Supply Chain

Supply focuses on the raw materials supplied to manufacturing, including how, when, and from what location.

Manufacturing focuses on converting these raw materials into finished products.

Distribution focuses on ensuring these products reach the consumers through an organized network of distributors, warehouses, and retailers

Supply chain decisionSupply chain decision

Location decisionLocation decisionproduction facilities, stocking points, and

sourcing points is the natural first step in creating a supply chain.

The location of facilities involves a commitment of resources to a long-term plan

great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service.

Production decisionProduction decisionproducts to produce, and which plants

to produce them in, allocation of suppliers to plants.

• Operational decisions focus on detailed production scheduling.

- include the construction of the master production schedules, scheduling production on machines, and equipment maintenance.

Inventory decisionInventory decisioninventories are managed and exist at every

stage of the supply chain as either raw materials, semi-finished or finished goods.

primary purpose to buffer against any uncertainty that might exist in the supply chain.

include deployment strategies (push versus pull), control policies --- the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location.

Transportation decisionTransportation decisionclosely linked to the inventory decisions,

since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode.

customer service levels, and geographic location play vital roles in such decisions.

Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are key in effective management of the firm's transport strategy.

Supply Chain FlowSupply Chain Flow

3 main flow: information flow material flow cash flow

information flow: interaction between customer and supplier

material flow: deliver the material to the end-user via procurement of raw materials, manufacturing, distribution and customer service.

cash flow: customer pay the material cost.

Supply Chain FlowSupply Chain Flow

Supply Chain Dynamics Supply Chain Dynamics and Riskand Risk

Supply chain do not always behave as expected

Excessive demand variability – due to information distortion in supply chain

Distortion known as Bullwhip of Forrester effect

Result of uncertainties is the supply chain risk.

Supply Chain Dynamics Supply Chain Dynamics and Riskand Risk