A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Below is an example of a very simple supply chain for a single product, where raw material is procured from vendors, transformed into finished goods in a single step, and then transported to distribution centers, and ultimately, customers. The application being modeled is that of a Retailer offering Consumer electronic goods to Consumers; a typical B2C model. To fulfill orders the Retailer has to manage stock levels in warehouses. When an item in stock falls below a certain threshold, the Retailer must restock the item from the relevant Manufacturer’s inventory (a typical B2B model). In order to fulfill a Retailer’s request a Manufacturer may have to execute a production run to build the finished goods. In the real world, a Manufacturer would have to order the component parts from its suppliers. For simplicity in this application, we assume this is a manual process which is supported through the use of fax.
Supply chain management -
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