Operations Management: Processes and Supply Chains, 12th Edition

Creating an Effective Supply Chain

Creating an effective supply chain involves the recognition of external competitive pressures as well as internal organizational pressures from groups such as sales, marketing, and product development. These pressures are (1) dynamic sales volumes, (2) customer service and quality expectations, (3) service/product proliferation, and (4) emerging markets.

Dynamic Sales Volumes

One of the most costly operating aspects of supply chains is trying to meet the needs of volatile sales volumes. Often this involves excessive inventories, underutilized personnel, or more expensive delivery options to meet customer demands on time. While sometimes these volatile demands are caused by external sources such as the customers ...