After understanding the basic flows involved in the supply chain management, we need to consider the different elements present in this flow. Thus, the different components of the flow of supply chain are described below. Transportation Transportation or shipment is necessary for an uninterrupted and seamless supply. The factors that have an impact on shipment…
Supply chain management can be defined as a systematic flow of materials, goods, and related information among suppliers, companies, retailers, and consumers. Types There are three different types of flow in supply chain management − ● Material flow ● Information/Data flow ● Money flow Let us consider each of these flows in detail and also see how effectively…
Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost-effective. A supply chain is the collection of steps that a company takes to transform raw materials into a final product. The five basic components of supply chain management are discussed below − Plan The initial stage…
Every firm strives to match supply with demand in a timely fashion with the most efficient use of resources. Here are some of the important goals of supply chain management − ● Supply chain partners work collaboratively at different levels to maximize resource productivity, construct standardized processes, remove duplicate efforts and minimize inventory levels. ● Minimization of…
In this era of globalization where companies compete to provide the best quality products to the customers and satisfy all their demands, supply chain management plays a very important role. All the companies are highly dependent on effective supply chain process. Let’s take a look at the major advantages of supply chain. The key benefits of…
Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production,…
A final issue concerns the treatment of uncertainty. One method for explicitly introducing risk considerations is to treat benefits and costs as random variables which may be described by probability distributions. For exam-ple, an estimate of fire losses might consider the following events: no fire, minor fire, intermediate fire, and major fire. Each event has…
There are two considerations in determining benefit-cost criteria. The first pertains to project acceptability, while the second pertains to project selection. Project acceptability may be based on benefit-cost dif-ference or benefit-cost ratio. Benefit-cost ratio is a measure of project worth in which the monetary equivalent bene-fits are divided by the monetary equivalent costs. The first criterion requires that…
Direct losses are measured or estimated statistically or by a priori judgment. Actuarial fire-loss data collected nationally or for a particular industry may be used, pro-viding it is adequately specific and the collection mecha-nism is reliable. More often, an experienced judgment of potential losses is made, sometimes referred to as the max-imum probable loss (MPL). Indirect losses, if considered, are…