1st mid exam

Supply chain management refers to the management of supplying goods and products required by the
end customer.

There are various reasons that SCM is important to retailers and businesses alike. SCM can boost
customer service, reduce operating costs, and improve a company’s financial position. Other benefits
include reduced inventory costs, better information sharing between partners, improved process
integration, and improved quality. Here is a breakdown of the benefits of SCM.

So, i think supply Chain management is necessary.

Short note

1.Lead time is the amount of time that passes from the start of a process until its conclusion. Companies
review lead time in manufacturing, supply chain management, and project management during pre-
processing, processing, and post-processing stages.

2.Crossdocking—An approach that was pioneered by Wal-Mart inits drive to increase efficiencies in its
supply chain.

3.Cycle Inventory—This is the amount of inventory needed to satisfydemand for the product in the
period between purchases ofthe product.

4.Product focus—A factory that takes a product focus performs therange of differentoperations
required to make a given productline from fabrication of different product parts to assembly ofthese
parts.

5. 5 major drivers :

1.production

2.inventory

3.location

4.Transportation

5.Information

6. the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to
the Right customer, at the Right price.