Supply Chain Management

Supply chain management is the integration of key business processes among a network of
interdependent suppliers, manufacturers, distribution centers, and retailers in order to improve
the flow of goods, services, and information from original suppliers to final customers, with the
objectives of reducing system-wide costs while maintaining required service levels.

(Christopher 1998; New and Payne 1995; Simchi-Levi, Kaminsky, and Simchi-Levi 2000).

A set of approaches used to efficiently integrate supplier, manufacturers, warehouses, distribution

centers so that the product is produced and distributed in the right quantities, to the right
location and at the right time to achieve minimum system wide cost and satisfied the customer
level.

SCM in Equation Form:

(Quality + Technology + Service + Cycle Time) / Price = Value