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Supply chain includes all parts including suppliers, manufacturers, distributors and customers, either directly or indirectly, in fulfilling customer demand. Supply chain includes not only the manufacturers and suppliers but also transporters, warehouses, retailers, and even the customers themselves.

In each organization such as manufacturing, supply chain includes all functions involved in receiving and filling customer demand. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.

Supply chain is dynamic and involves a constant flow of information, products, and financial inter-level of different levels. In fact, the main purpose of the supply chain is meeting customer needs and in the process, turn a profit for himself.

Raises the supply chain picture of the movement of products or supplies from suppliers to manufacturers of products, distributors, retailers, customers throughout the chain.
Supply chain usually involves a variation of levels. These levels include:

  1. Customer
  2. Retailer
  3. Distributor
  4. Manufacturer
  5. Component or raw material suppliers.

Images of the levels of the supply chain:


Each level of the supply chain is connected through the flow of products, information, and finance. This flow usually occurs directly and may be regulated by one or intermediary level. Each level does not want shown in the supply chain. Design the right supply chain depending on customer needs and the roles undertaken by each level involved.

The purpose of each supply chain should be to maximize overall value. The value of the supply chain is different between what the end result is valuable for the customer and supply chain costs which occur in filling customer demand.
Design, planning, and operations kaputusan important role in the success or failure of a company.

The stages in the supply chain decision making:

  • Strategy or supply chain design.
During this phase provides marketing plans and pricing for the product, the company decided how to structure the supply chain in the next few years.

  • Planning the supply chain.
Decisions made during this stage of the time frame being considered is a quarter of the year. Composition of the supply chain of strategic phase is determined that it is confirmed. This arrangement determines the existing barriers. The success of planning to maximize supply chain surplus that can be generated by providing planning obstacles that arise during the design phase or strategic.

  • Supply chain operations
Time used here is a weekly or daily, and during this phase the company make decisions based on individual customer orders.

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