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Learning Objeetives
After readingthis chapter, will be ableto: you 1" Discussthe goal of a supptychaia and explain the impacr of supply chain decisionson the success a firm. of 2' rdentify the three key supply chain decision phases aud explaiu
3. Describe the cycle and pusb/pull views of a supply chain.
the siguificance of eachone.
4. Classifythe supply chain macro processes a in firm.
this chapter, we provide a conceptual understanding of what a supply chail is and
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l-the various issues that need to be ionsidergd when plunning, or operating
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a supply chain.'we discuss the significance of supply chai; de;isions ano supply chain performance for the successof a firm.We utso pr-ovioe several examples to*'aitt"r"ot industries to emphasize the variety of supply ciain issues that companies need to consider at the strategic, planning, ana operationgl levels.
1.1 WHAT IS A SUPPLY CHAIN?
A supply chain cansists all parties involved, directly or indirectly,in futfiiling of a customer request.The supply chain includesnot only the manufacturer and suppli-ers, but also transporters.warehouses, retailers, and even customersthemselves.
Within each organizslien, such as a manufacturer, the supply chain includes all fuactions involved in receiving aud filling a customerrequest.Th,ise functioos include,but are not limited to, new product development, marketing, operations, distribution, finance, and cus_ tomer service.
Consider a customer walking into a Wal-Mart store to purchase detergent.l[he supply chain begins with the customer and his or her need for letergent. The iext stage of this supply chain is the Wal-Mart retail sitorethat the customer visits. Wal-MJrt stocksits shelvesusing inventory that may have been supplied from a finishe&goods warehouseor a distributor using trucks supplied by a thirA party.The distributor in