Demand, Supply, and Cash
The essential goal in managing a supply chain is to achieve an orderly flow of goods from extractors to consumers. It should not be surprising, then, that the deepest roots of the discipline can be found in transportation management, which is responsible for moving finished goods to the next link in the chain. Over time, transportation management merged with a related function, materials management, to form the broader discipline of logistics, which handles the flow of materials all the way from suppliers through the three internal inventories and out to customers.
What distinguishes the current discipline of supply chain management (SCM) from its predecessors is that it is equally concerned with two other flows: the ...
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