SUPPLY CHAN MANAGEMENT

Supply Chain Management

Supply Chain Management

Introduction

Supply chain business process integration entails collaborative work among buyers and suppliers, joint product development, common systems and information sharing. Operating an integrated supply chain requires continuous information flows, which in turn assist to achieve the best product flows.

Businesses must deal with many different types of uncertainty. These may include competitors' actions, share prices, petrol prices, floods, droughts, workers strikes, bomb threats, shortage of raw materials and labour, or sudden increases or decreases in demand for products or services. Describe the impact of uncertainty on organisations in a Supply Chain?

Uncertainties are mostly in the traditional production methods. In the planning assumptions only to take into account sales side. the planning of production with regard to the uncertainty several factors occur. In this work should report scientific and practical Be examined procedures, methods and ideas relating to the production planning to determine whether and how these uncertainties can be taken into account and thus whether an aptitude in the use of resources in production given.

This question deals with the issues of uncertainty that a company has to face in its day to day activities. These uncertainties can be due to various reasons, ranging from, competitor's actions, share prices, etc. Due to these uncertainties the day to day activities of the organisations get affected, which in turn also affects the progress and the performance of the organisation, as well. Therefore, it becomes necessary for every organisation to develop effective strategies, in order to deal with these issues of uncertainties (New 2010,p. 76). These strategies will help the organisation in combating these uncertainties also it to perform its day to day activities in a coherent manner.

 

Uncertainty

Risk

Quality

Damage

Defect in material

Natural disaster

Quality loss

Storms

Production loss

Quantity

Failure due to severe weather

Fluctuations due to the growth

shortage of raw materials

Weather Situation

Workers strikes

Natural wastage through spoilage

For scientific considerations of supply chain management, this distinction not always taken up. To define Sinha et al. risk in supply chains as a function of Degree of uncertainty and the impact of an event. A risk So, therefore, only when conditions of uncertainty arising out of a harm. This View also shared, which in particular the supply risks as an incident defined in error by the supplier or the supply market demand during manufacturing companies can not be satisfied (Hugos 2011 ,p. 89). Thus, the uncertainties are Suppliers or the market in direct connection with an action - namely, cost or Revenue losses. Tang different operational risks and disruption risks (2006, p. 453).

The former here include uncertainties relating to customer demand, supply and supplier costs. Disruption risks, however, are beyond the control of companies in the supply chain. Natural disasters, strikes or economic crises. Goh et al. (2007), Cucchiella & Gastaldi (2006) or Ho (1989), first separate the uncertainties in external and internal factors. Internal factors can be the company of the supply chain itself be reduced or even eliminated, while external uncertainties through upstream Levels or other institutions not generated and thus the influence of ...