SUPPLY CHAIN MANAGEMENT |
12/27/2017 |
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Questions/Main Ideas Importance of Supply Chain Management Inventory Management What is a consignment inventory? Consignment Stock agreement What is transaction cost economics (TCE) in outsourcing? What is Supply chain Coordination? Role of a mathematical model-based Stacklberg theory in supply chain coordination |
Notes Supply chain management has been a positive approach in enhancing the companies’ performance. It improves performance including through procurement and inventory management. |
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Inventories represent approximately 50 percent of a supply chain’s total logistics costs. The management of inventories assists companies to satisfy the consumer demands, increase profits, and reduce costs. |
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| A consignment inventory is inventory in the customer’s possession but is still owned by the supplier. | |
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A Consignment stock agreement is adopted between a purchaser and a supplier and has different compensation arrangements. Finding the maximum size and number of payments improves the supply chain system’s performance as well as its entire profit. |
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Transaction cost economics is a form of transaction aimed at minimizing transaction costs. TCE presents a way to understand outsourcing and whether to purchase from the market or make in-house as organizations are keen on minimizing transactional costs |
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It is the concept of working together by aligning the objectives and plans of individual enterprises with the aim of enhancing supply chain performance. It analyzes the process of supply chain coordination under the production costs and market demands’ disruptions as well as offering enhanced decision-making The enhanced revenue-sharing model presented functions interactively and provides realistic solutions. |
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SUMMARY Supply chain management scholars have continued to develop models, establish mechanisms, and demonstrate how companies can leverage the system to enhance their performance, reduce costs, and satisfy their customers. There are different perspectives of supply chain management and how they improve organizational performance including inventory management, adopting transaction cost economics in outsourcing and supply chain coordination. |
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