Introduction to Supply Chain Management
Supply chain management (SCM) is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It is also defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."
SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.

Supply Chain Model
Supply Chain Management addresses the following areas: * Distribution network configuration * Distribution strategy * Trade-offs in logistical activities * Information * Inventory management * Cash flow
Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional. SCM applications provide real-time analytical systems that manage the flow of products and information throughout the supply chain network.

Supply Chain and Bullwhip Effect
The bullwhip effect (or whiplash effect) is an observed phenomenon in forecast-driven distribution channels. It refers to a trend of larger and larger swings in inventory in response to changes in demand, as one looks at firm’s further back in the supply chain for a product. The concept is also known as the Forrester effect. Since the oscillating demand magnification upstream of a supply chain is reminiscent of a cracking