Chapter 2

Global Supply Chain Management

Consider the supply chain for a restaurant that is committed to “local sourcing” of its ingredients for the kitchen.1 The manager or chef must procure enough stock on a daily basis from local farms to satisfy the orders of an unknown number of customers who will dine in the restaurant on a given day and will order potentially anything on the menu. Fresh ingredients lack preservatives; therefore, they have a very short shelf life if the manager ultimately orders too much one day. Excess inventory often results in huge losses for the restaurant when the ingredients spoil. On the other hand, customers usually become very irritated if they hear that the restaurant has run out of certain dishes when they come ...

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