supply chain

(noun)

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

Related Terms

Examples of supply chain in the following topics:

  • Inventory Types

    • The term is used in production and supply chain management.
    • A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.
    • In a supply chain management flow; the finished goods of a supplier can constitute the raw material of a buyer.

  • Overview of Merchandising Operations

    • In the supply chain, merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays.
    • In the United Kingdom, for example, there are a number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support for new stores.

  • Impacts of Forecasting on a Business

    • One such aspect is Supply Chain Management.
    • Forecasting can be used in Supply Chain Management to make sure that the right product is at the right place at the right time.

  • Inputs to the Production Schedule

    • The term is used in production and supply chain management.
    • In a Supply chain management flow, the finished goods of a supplier can constitute the raw material of a buyer.
    • It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials.
    • Time: The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this lead time.
    • Uncertainty: Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods.

  • Seasonal Production

    • Time - No supply chain is perfect, and often enough time lags can ruin potential business opportunities.
    • Uncertainty - Supply and demand are not perfectly predictable.

  • Just-in-Time Technique

    • But JIT relies on other elements in the inventory chain.
    • A company without inventory does not want a supply system problem that creates a part shortage.
    • Supplies come in at regular intervals throughout the production day.
    • Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time.
    • Just-in-time operation can leave suppliers and downstream consumers open to supply shocks and large supply or demand changes.

  • Political, Country, and Global Specific Risks

    • For example, a restaurant chain would experience a different risk level than an electronics manufacturing company.
    • A restaurant chain leases its space and competes with numerous local businesses, whereas an electronics manufacturing facility requires billions of U.S. dollars for investment.
    • Moreover, the officials in a foreign government will know about the electronics company well, but the restaurant chain may not appear on the government's radar.
    • Condition 1: A government forces foreign firms to use local companies, purchase local resources and supplies, and hire local labor.
    • Production quotas reduce the petroleum supplies, boosting petroleum prices and profits.

  • Monetary Policy Goal

    • Financial market and institution stability: Financial panics, bank runs, stock market crashes, or bankruptcies of large financial institutions could trigger a chain reaction that causes other financial institutions to bankrupt.
    • For example, if the Fed pursues monetary policy that expands the money supply, boosting national output and lowering the unemployment rate.

  • Interest Rates and the Business Cycle

    • Consequently, the bond's supply increases.
    • When both the supply and demand functions shift, we know either the price or quantity while the other variable becomes indeterminate.
    • If you do not believe me, then experiment with the supply and demand functions.
    • First, increase the demand function by a good deal, and increase the supply function by a little.
    • Second, increase the demand function by a little and increase the supply function by much.

  • Chapter Questions

    • Which four factors shift the supply for bonds and in which direction?
    • Draw a bond market with a supply and demand function.
    • Draw a bond market with a supply and demand function.
    • Draw a bond market with a supply and demand function.
    • How would the demand and supply functions for a bond market shift during a business cycle and during a recession?