Supply Chain Management Project: Revenue and Cost Analysis, SCM

This project delves into the critical aspects of supply chain management. It examines revenue management strategies, highlighting conditions under which they are most effective. The project further analyzes the impact of supply chain decisions on operating costs, transportation costs, and inventory ...Read More

Running head: Integrative supply chain management
Integrative Supply Chain Management
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Integrative supply chain management 1
1.Identify conditions under which revenue management tactics can be effective?
Following are the conditions under which revenue management strategies can be viable:
 The item's esteem should be distinctive in different market portions.
 The strength of the item is short and thus perishable in nature.
 There could be a probability of the event of wastage in the Product.
 The saleability of the item is the end goal that it could be sold as the unitary item or
likewise in part.
2.Following completion of the Week 9 SCM Globe activities, please comment on the
following:
a.What is the effect on the supply chain in terms of operating costs, transportation costs
and inventory as you support business growth?
Transportation costs are commonly 5-6% of an organization's income and a noteworthy
supporter of general item costs. Better transportation administration enables organizations to
enhance their general production network proficiency. (Vakharia,2015) On the other hand the
operating costs are considered as the important costs that will be considered in the supply chain
management in terms of business growth the firm has to minimize the total production cost ,
which will tighten the operating cost and reduce the cost of input, but it will be only done if the
supplier reduce the cost of supplies and it is only done by building the long-term relationship
with the supplier. (Bowersox,2015) In the same way, the inventory plays an important role as it
facilitates demand and supply , by effectively managing the reverse and forward flows in the
supply chain.

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b.Did you open a new warehouse distribution center to support the new stores or did you
keep and/or enlarge the existing warehouse distribution center? Why?
We will enlarge the existing warehouse distribution center by the adoption of the racking
methods , as the new distribution center involves high operating costs in terms of labor and
maintenance.
c.What were the biggest challenges you faced in designing the expanded supply chain and
how did you use simulations and operating data to address these challenges?
The biggest challenges that have been faced in designing the expanded supply chain is the
volatility in the supply chain, future growth solely depends on the global customers and
customized products,and the existing supply chain is not integrated. (Hendricks,2015) The
simulations and operating data are used in addressing the challenges by improving accuracy in
supply chain planning and by adopting the upstream supply chain cost engineering.
References:
Vakharia, A. J. (2015). E‐business and supply chain management. Decision Sciences, 33(4), 495-
504.
Hendricks, K. B., & Singhal, V. R. (2015). An empirical analysis of the effect of supply chain
disruptions on long‐run stock price performance and equity risk of the firm. Production and
Operations management, 14(1), 35-52.
Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2015). Supply chain logistics management (Vol.
2). New York, NY: McGraw-Hill.

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