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Supply Chain Management

Dr. Ir. Philips Kembaren MBA

What is Management ?
Managementinbusinessandorganizationsis the
function that coordinates the efforts of people
to accomplish goals andobjectivesusing
available resources efficiently and effectively.
Management comprisesplanning,organizing,
staffing,leadingor directing, andcontrollingan
organizationto accomplish the goal.Resourcing
encompasses the deployment and manipulation of
human resources,financialresources,technological
resources, andnatural resources.
Management is also an academic discipline, a
social sciencewhose objective is to study social

Supply and demand network

Source : Wikipedia

Logistics vs Supply chain

The terms "supply chain" and "logistics" are often used
Generally, logistics focuses on the actual transportation and
storage of goods. It deals with things such as inbound and
outbound freight, reverse shipping, communications during
transit, storage andwarehousing.
Supply chain management is the umbrella that covers all
aspects of the sourcing and procurement of goods. Basically,
supply chain management forms and manages the businessto-business links that allow for the ultimate sale of goods to
consumers. Logistics, basically getting the freight from one
place to the other, is a function that falls under the wide
umbrella of supply chain management, but is only one part
of the entire process.

The relationship of logistics to

supply chain management
(Lummus et al, 2001)

The logistics involves planning, implementing and

controlling efficient, effective flow and storage of
goods and services from the beginning point of
external origin to the company and from the
company to the point of consumption for the
purpose of conforming to customer requirements.
Logistics is generally viewed as within one
company, although it manages flow between
company and its suppliers and customers.
Supply chain management includes logistics flows,
the customer order management and production
processes and information flows necessary to
monitor all activities at the supply chain nodes.

Logistics Management

Supply Chain Mangement

The Beer Game is a supply chain simulation that lets

the players experience the pressures of playing a role
in a production/distribution simulation to develop
their Supply Chain understanding. The game is played
via a large board game with teams of at least four
players. Players move pieces around the board and
determine what they want to make or purchase and
how much stock to hold, in a fun and competitive

It was created by a group

of professors at MIT
Sloan School of
Management in early
1960s to demonstrate a
number of key principles
of supply chain
management and
introduces the players to
the concept of the

The bullwhip effect is a wellknown symptom of coordination

problems in (traditional) supply
chains. It refers to the trend of
larger and larger swings in
inventory in response to changes
in demand, the further back
through the supply chain you go.
Even in the face of stable
customer demand, small
variations in demand at the retail
end tend to dramatically amplify
upstream the supply chain when
As a consequence of the bullwhip effect
a range of sharing and
does not exist.
inefficiencies occur throughout the supply

high (safety) stock levels

poor customer service levels
poor capacity utilisation
aggravated problems with demand forecasting
ultimately high cost and low levels of inter-firm trust

Process analysis
A form oftechnical writingandexpository writing
"designed to convey to the reader how a change
takes place through a series of stages".
the reader of a process analysis is typically
interested in understanding the chronological
components of a system that operates largely
without the reader's direct actions (such as how the
body digests an apple),
while the reader of a set of instructions intends to
use the instructions in order to accomplish a
specific, limited task (such as how to bake an apple

Quantitative Analysis
(Free Dictionary)

Examinationof measurable and

verifiabledatasuch as earnings,
revenue,wages,market share, etc