CHAPTER 2Supply Chain Operations: Planning and Sourcing
As the saying goes, “It's not what you know but what you can remember when you need it.” Since there is an infinite amount of detail in any situation, the trick is to find useful models that capture the salient facts and provide a framework to organize the rest of the relevant details. The purpose of this chapter is to provide some useful models of the business operations that make up the supply chain.
A Model of Supply Chain Operations
In the first chapter we saw that there are five drivers of supply chain performance. These drivers can be thought of as the design parameters or policy decisions that define the shape and capabilities of any supply chain. Within the context created by these policy decisions, a supply chain goes about doing its job by performing regular, ongoing operations. These are the nuts-and-bolts operations at the core of every supply chain.
The supply-chain operations reference (SCOR) model was introduced in 1996 as a way to analyze a supply chain and provide a basis for evaluating the ...
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