SUPPLY CHAIN MANAGEMENT

Supply Chain Management



Supply Chain Management

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant information relating to the analysis of supply chain management. A supply chain is an organization of a network that connects producers, marketers, distributors, and consumers in a complex manner to move a commodity from producers to consumers. A supply chain contains various actors, from producers to consumers, technology, regulations, activities, resources, information, and forms of governance. The supply chain, also known as the global commodity chain is currently one of the most widely used approaches to studying inter-firm relations in the global business system. Most firms must acquire materials or services from their suppliers. They use these materials or services, add value to them, and sell them to others. Supply disruptions, commonly known as the bullwhip effect, have been a major challenge facing supply chain firms. Supply chain management and strategic and operational information requires skill and decision-making, which may make sense to complicate the situation (Lee, 1997).

One of the greatest challenges faced by purchasing managers is the selection of strategic partners that will supply them with the essential components, products and materials in an effective and timely manner to assist in maintaining a competitive advantage (Chopra, 2010).In this paper, we will examine the case of Clean Car Solutions (CCS) and provide valuable suggestions to the firm regarding which supplier should the CEO go with. Details are discussed in the next section.

Discussion

CCS is a car engines manufacturer. It currently deals with a local supplier who is responsible for delivering 1000 bearing per week. The cost charged by the supplier is $1 per bearing. The CEO has recently identified a new supplier. The new supplier claims to deliver the same amount of bearings for $0.95 per bearing.

The ...