
48 Supply Chain Management and Logistics
Network structure and material ow. The supply chain network has three
stages: manufacturers, distribution centers (DCs), and customers, as shown in
Figure 3.1. Each customer has a certain demand to be fullled in each period.
Both manufacturers and DCs hold inventories of products. Manufacturers
produce and ll their own inventories and send products to DCs, which in
turn send the products to customers.
Extensions or variations in the literature. There exist suppliers to provide
manufacturers with raw material.
There exist third parties that serve as contract manufacturers or DCs. The
third parties usua ...