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SUPPLY CHAIN
There are many definition of supply chain. According to Jayashankar et al., suply chain is a network of autonomous or semi-autonomous business entities collectively responsible for procurement, manufacturing, and distribution activities associated with one or more families of related products. Other definiton with the similar meaning is that supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system. (Lee and Billington). Another uses analogues definiton is that a supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers ( Ganeshan and Harrison ).
Supply chain is proposed to have the right products, in the right quantities, at the right place, at the right moment at minimal cost to satisfy customers without disregarding a quality management.
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| EXAMPLE OF A SUPPLY CHAIN |
Figure 1: An Example of a Supply Chain
Figure 1 above is the example of supply chain from the very first suppliers who have raw materials flows to manufacturing companies to be manufactured and become half-finished and finished products, goes to distribution center, continues to retailers and finally to end-customers. All the process in supply chain management, that we are going to go deeply here, this is including forecasting the demand, inventory management, and the lean system for reducing inventory stock.
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