Logistics and Supply Chain Management

Logistics and supply chain
management

Table of Contents
Question 1..........................................................................................................................1
Question 2..........................................................................................................................2
Question 3..........................................................................................................................3
Question 4..........................................................................................................................4
References.........................................................................................................................6

Question 1. Supply Chain Management is an important facet of most organizations.
a. Identify and briefly describe the three (3) of the main sub-systems in the supply chain. Are
these relevant for all organizations? Why?
Ans: The three main sub-systems that form the essential part of a main Supply chain
Management mechanism are –
1. Production – the production or manufacturing of goods and services from raw materials
to finished goods for consumption forms one of the sub-systems.
2. Raw Materials – the material required to formulate the final finished good, in the form of
input inventory forms another sub-system.
3. Distribution – another sub-system includes delivery cycle, mode of transport, methods of
transport planning, feedback collection etc.
These three sub-systems or sub-components are majorly applicable to all the organizations. In
business scenario, a product or goods exchange requires a basic raw material input from
suppliers, which are then produced as finished goods and distributed across various centers of
delivery. The supplier can be a third party or the company unit itself, but raw materials,
production and distribution forms the essentials of any business cycle. Therefore, these three
sub-systems are important for all organizations.
b. Identify four (4) goals for the supply chain. What priority order would you rank these in? Why?
Ans: Supply chain cycles are meant to deliver products or services from suppliers to consumers.
Therefore, this mechanism needs certain objectives or goals to achieve the outcomes. There
can be many associated goals with Supply chain management cycle, depending upon the
business requirement. Generally, the key objectives behind a good supply chain system are –
1. Reducing the cost – the objective to bring down the cost, in order to maximize
profitability and reduce the expenses is one of the primary requisites in any business.
2. Improving Efficiency through flexibility – the ability of business to maximize its
productivity and performance, through flexibility in production, is another important
objective in supply chain management.
3. Optimizing value chain through profitability – the stabilize the expenses, benefit all the
associated stakeholders in the supply cycle and to harness the maximum value is a
crucial part of supply chain management.
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