Supply Chain Management

Supply Chain Management

Supply chain management is an important organizational function. Supply chain includes different activities including procurement, storage, and distribution. Designing an effective supply chain is a critical step for organizations. There are different tools and metrics which are helpful in designing an effective supply chain. An effective supply chain design is based on key performance indicators that are related to the implementation of strategies and the attainment of objectives. In order to design an effective supply chain, it is important to increase the focus of management on suppliers (Foster & Ogden, 2011, pp. 2285).

Scenario Analysis

Scenario analysis involves the quantification of different initiatives. Scenario analysis starts with what-if scenarios that define key assumptions. In this paper, scenario analysis will be used in the contexts of a computer manufacturer that implemented demand planning and order fulfillment management. There are two scenarios which can be considered. In the case of soft demand, a tough business climate has been assumed which results in a decline in unit sales. This condition is also accompanied by pricing pressure. In the case of strong demand, it has been assumed that the improvements in economic conditions result in an increase in unit sales and firmed up pricing. In the cases of soft demand, the demand planning solution works effectively. Demand planning is an important component of an effective supply chain. With improvements in the accuracy of forecast and responsiveness, the solution allows the company to adjust its inventories according to the demands of customers. On the other side, order fulfillment management system performs worse in a down market. When the demand drops, the system does not provide protection against excess inventory (Fromm and An, 2005, pp. 14).

Node Assessment

There are different nodes in the supply chain. The various nodes in the supply chain include shippers, carriers, portals, ...