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Operations management

8th edition

Chapter 12

Supply chain management

Figure 12.1

This chapter examines supply chain management

In Chapter 12 – Supply chain management – Slack et al.

identify the following key questions…

 What is supply chain management?

 How should supply chains compete?

 How should relationships in supply chains be managed?

 How is the supply side managed?

 How is the demand side managed?

 What are the dynamics of supply chains?

Key questions

‘Supply chain management is the management

of the interconnection of organizations that relate

to each other through upstream and downstream

linkages between the processes that produce

value to the ultimate consumer in the form of

products and services’.

What is supply chain management?

Supply chain management

Short-term ability to supply Long-term ability to supply

• Range of products or services

provided

• Potential for innovation

• Quality of products or services • Ease of doing business

• Responsiveness • Willingness to share risk

• Dependability of supply • Long-term commitment to supply

• Delivery and volume flexibility • Ability to transfer knowledge as

well as products and services

• Total cost of being supplied • Technical capability

• Ability to supply in the required

quantity

• Operations capability

• Financial capability

• Managerial capability

Factors for rating alternative suppliers

Table 12.1

Weighted supplier selection criteria for a hotel chain

Figure 12.7

Types of supply network arrangement

Figure 12.8

Supply arrangements are a balance between

contracting and relationships

Figure 12.9

The value of partnership relationships

‘Functional versus ‘innovative’ products

Figure 12.11

The supplier selection process

The bullwhip effect