...Learning Team Reflection: Supply Chain and Demand Model ECO/372 Learning Team Reflection: Supply Chain and Demand Model The topic that we are discussing is supply chain and demand model. We have learned many valuable tools over the past four weeks that has lead us to this topic. We learned about historical economic data, economic forecast data, aggregate demand and supply models. Each of these topics has aided us in learning the fundamentals of Macroeconomics. This week we discussed the relationship between supply chain and the supply and demand mode. We will explain what each is and how they work together. Our goal is to gain and give a better understanding of the relationship between the two. Supply Chain and Demand Model A Supply Chain is a network of companies and services that have products available to consumers. “Historically, the three fundamental stages of the supply chain; procurement, production and distribution, have been managed independently” (Thomas & Griffin, 1996, p. 1). The supply chain gets a good or service from the supplier to the consumer. Goods are often produced anywhere in the world, and the supply chain management makes them available to us locally so we don’t have to travel far to purchase a foreign car, a pair of jeans or a cup of coffee. They make sure we get the best quality for the price we pay. The supply chain consists of purchasing, logistics and the production line. The supply chain exists to bring in the resources...
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...Discuss the relationship between supply chain and the supply and demand model. Over the past four weeks we have learned many important lesions and gained many tools to help us in all of our future endeavors. Some of the things that we have learned about are, aggregate demand and aggregate supply models, economic forecast data, historical economic data, interest rates, money supply, and the Federal Reserve. These topics are key in understanding the concepts of the fundamentals of macroeconomics. This week’s learning team reflection will discuss the topic of the supply chain and its relationship to the supply and demand model. This paper will explain and discuss each of the topics and how they relate to each other and how they work together. The objective of this paper is to help give the readers an improved understanding of the two concepts and their relationship. Supply Chain and Demand Model A Supply Chain is a network of companies and services that have products available to consumers. “Historically, the three fundamental stages of the supply chain; procurement, production and distribution, have been managed independently” (Thomas & Griffin, 1996, p. 1). The supply chain gets a good or service from the supplier to the consumer. Goods are often produced anywhere in the world, and the supply chain management makes them available to us locally so we don’t have to travel far to purchase a foreign car, a pair of jeans or a cup of coffee. They make sure we...
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...Supply Chain vs. Supply and Demand Model ECO372 Supply Chain vs. Supply and Demand Model In today's competitive economic industries, companies are taking strategic steps to solidify a stern supply chain to ensure overall growth in target markets. Companies must have products readily available in order to stay in business and to stay relevant amongst consumers. In the world where millions of consumers are making choices and control what they want to purchase and how often they want to do so strikes a need for more resources and productivity. Businesses are constantly evolving in an effort to become the leader in their industry to attract and appeal to as many people possible. Supply and demand are the key elements in establishing the ultimate value of a consumer product. There are several influential factors that can alter the demand and create changes in production by increasing or decreasing the overall supply. Seasons, trends, advertising and availability all provide a platform for business to act on the need of the consumer market. Supply Chain "A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. These services include, but are not...
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...Learning Team Reflection: Supply Chain and Demand Model Team A ECO/372 June 11, 2014 Learning Team Reflection: Supply Chain and Demand Model What is a Supply Chain? Supply Chain Management? A supply chain is a network of companies and services that have products available to consumers. For example, grocery stores hire farmers to raise vegetables and contract with different transportation agencies to bring them fresh into the stores. The supply chain gets “a good or service from the supplier to the customer (“Supply Chain”, 2014). Goods are often produced anywhere in the world, not necessarily at the local level; supply chain management makes them available in local neighborhood stores so we don’t have to travel overseas just for a pair of jeans, coffee, etc. They make sure we get the best quality and prices. What is the Supply and Demand Model? Supply and Demand is one of the most frequently used terms in economics (Heakal, 2014). More specifically, demand is referring to a quantity and how much of a product or service is desired by its consumers. Demand does not factor in want or desire; it is based on the number that consumers are ready and willing to actually pay money for. Supply is representative of how much the market can offer. Sufficient supply to meet steady demand leads to an equal balance in Supply and Demand. What is the law of supply? Law of demand? Law of supply is explained as the price of a good or service increases, the quantity of those goods or...
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...Value Chain = Supply Chain + Demand Chain: New Approaches to Creating and Capturing Sustainable Value Fanny Thublier(1), Terry Hanby (2) and Yongjiang Shi (2) Arts et Métiers ParisTech 75013 Paris, France (2) Institute for Manufacturing University of Cambridge, Cambridge, CB3 0FS, UK (1) Abstract The purpose of this research paper is to develop a Value Chain conceptual model based on a combined Supply and Demand approach. Drawing primarily from the literature on Supply Chain, Demand Chain and Value Chain, modern definitions for these concepts are developed. Based on these findings, a new equation in the “value” world is introduced: “Value Chain = Supply Chain + Demand Chain”. The resultant model recognizes the growing importance of the end-consumer in the design and management of these chains and considers both the effectiveness and efficiency relationship in the Value Chain. In addition, different value perspectives for the Value Chain are suggested with particular focus on sustainable value creation and capture issues. It is anticipated that this model will be developed further in the specific context of the luxury market using case studies to develop and refine the proposed Value Chain model. Keywords: Value Chain, Supply Chain, Demand Chain, Consumer, Customer. Introduction While external forces such as economic, ecological, technological and regulatory developments are increasingly altering the global landscape, new industry trends now affect the value...
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...Supply Chain and Demand Model By Sharon Carr, Tameka hamlet, Asabi Pierre-Louis, Shanda Smith, Tyrell Fulwood ECO/372 Instructor: Timothy Dunning University of Phoenix May 20, 2015 The Supply and Demand basics: Even though an entire deliberation of supply and demand curves are contemplating measures of qualifications and complexities, the straightforward notions behind these curves are essential. The surveillance from the demand curve, the lower prices of a product means, the more of it people demand. The exceptions to these behaviors may be occasional (and the economists exceedingly have supplemented the theoretical feasibility of these deviations), but there is not many and the transient negative relationship between quantity and price demand, is how economists refer to it as the law of demand. The curves of demand will never change from a downward sloping, the quantity demand and with the price on the vertical axis (period) in the horizontal axis. Supply curve notions, if the product prices are higher, the producers will have to supply more. The supply curves sloping is upward. To justify the sloping going upward in relations between quantity and price supplied is the amount of manufacturing extra units of commodity increases as more is constructed. A higher price is what motivates added output. But this may not be the case every time. There is time for existing companies to expand the size of their plant, or new organizations entering an...
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...Supply chain and demand models ECO/372 August 25, 2014 Supply chain and demand models Supply chain is a system that consists of people, businesses, activities, information, and all the resources that involved in moving products or services from suppliers to customers. The supply chain is greatly affected by supply and demand. As the demand increases for a product this benefits all of the aspects of the supply chain and creates jobs and should reduce the cost to manufacture. Many assume that supply chain and the supply and demand model are one in the same or very similar. This is not the case at all they need to be at the forefront together when it comes to running a successful business they are not one in the same. They have to run hand in hand and be a complete balance of each other to run efficiently. The supply chain transforms materials and resources from a raw ingredient into a finished product that is eventually disbursed to the customer. The supply and demand model affects this in regards to what is currently driving the supply chains market. As demand raises and lowers the supply chain has to be efficient in keeping up with the market or it could find itself in severe trouble with excess product and no clientele or no enough product and excess supply. In the Supply chain system, products can be re-entered the supply chain for recycling again. The relationship between supply and demand is an inverse relationship. When demand increases from consumers, supply decreases...
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...INTEGRATED SUPPLY CHAIN MANAGEMENT IN THE GOVERNMENT ENVIRONMENT ABSTRACT With the fall of East European Socialist-Bloc and opening up of the Asian markets, the trade barriers began falling during the 1980’s and continued throughout the 1990’s. This development lead to organizations having a supply chain, that criss-crossed the whole globe. The proliferation of trade agreements has thus changed the global business scenarios. The Integrated Supply Chain Management (ISCM) is now not only a problem of integrated logistics (as a process) but also demands that the supply chain management (SCM) must look into the ramifications of these arrangements on the cost of transportation (including tariffs or duties) of products within a trade zone and outside it, besides, developing logistics strategies. The field has thus developed in the last few years for bridging the gap between demand and supply vis-à-vis efficiency and cost trade-offs. The SCM now not only involves the “management of logistic function”, as was done in the past (to achieve internal efficiency of operations) but, includes the management and co-ordination of activities, upstream and downstream linkage(s) in the supply chain. The integrated supply chain management, in particular include : Planning and Managing supply and demand; Warehouse Management; Optimal Inventory control; Transportation and Distribution, Delivery and customer’s delight following the basic principles of supply chain management viz. working together;...
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...INTEGRATED SUPPLY CHAIN MANAGEMENT IN THE GOVERNMENT ENVIRONMENT R.K. Gupta* and Pravin Chandra** ABSTRACT With the fall of East European Socialist-Bloc and opening up of the Asian markets, the trade barriers began falling during the 1980’s and continued throughout the 1990’s. This development lead to organizations having a supply chain, that criss-crossed the whole globe. The proliferation of trade agreements has thus changed the global business scenarios. The Integrated Supply Chain Management (ISCM) is now not only a problem of integrated logistics (as a process) but also demands that the supply chain management (SCM) must look into the ramifications of these arrangements on the cost of transportation (including tariffs or duties) of products within a trade zone and outside it, besides, developing logistics strategies. The field has thus developed in the last few years for bridging the gap between demand and supply vis-à-vis efficiency and cost trade-offs. The SCM now not only involves the “management of logistic function”, as was done in the past (to achieve internal efficiency of operations) but, includes the management and co-ordination of activities, upstream and downstream linkage(s) in the supply chain. The integrated supply chain management, in particular include : Planning and Managing supply and demand; Warehouse Management; Optimal Inventory control; Transportation and Distribution, Delivery and customer’s delight following the basic principles of supply chain management...
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...INTEGRATED SUPPLY CHAIN MANAGEMENT IN THE GOVERNMENT ENVIRONMENT R.K. Gupta* and Pravin Chandra** ABSTRACT With the fall of East European Socialist-Bloc and opening up of the Asian markets, the trade barriers began falling during the 1980’s and continued throughout the 1990’s. This development lead to organizations having a supply chain, that criss-crossed the whole globe. The proliferation of trade agreements has thus changed the global business scenarios. The Integrated Supply Chain Management (ISCM) is now not only a problem of integrated logistics (as a process) but also demands that the supply chain management (SCM) must look into the ramifications of these arrangements on the cost of transportation (including tariffs or duties) of products within a trade zone and outside it, besides, developing logistics strategies. The field has thus developed in the last few years for bridging the gap between demand and supply vis-à-vis efficiency and cost trade-offs. The SCM now not only involves the “management of logistic function”, as was done in the past (to achieve internal efficiency of operations) but, includes the management and co-ordination of activities, upstream and downstream linkage(s) in the supply chain. The integrated supply chain management, in particular include : Planning and Managing supply and demand; Warehouse Management; Optimal Inventory control; Transportation and Distribution, Delivery and customer’s delight following the basic principles of supply chain management...
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...Learning Team Reflection: Supply Chain and Demand Definitions Supply Chain According to Investopedia the Supply Chain is defined as the network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Supply and Demand In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modern economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising (dictionary.reference.com). Relationship The supply chain and supply and demand model are very similar because they both work hand and hand to be successful. Both models can be used to project much needed information of what consumers purchase and the amount they will pay for it. This is very useful to the stakeholders, involved in this process. Essentially these models can predict the consumer’s wants and needs for products on the market and for researching future products. The customers wants is what drives the supply chain. In the demand model the customer is at the...
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...Reflection Summary A supply chain is the system of organizations, people, activities, information, and resources required to put a product or service in motion. Activities of the supply chain change natural resources, raw materials, and components into a final product that is delivered to the consumer or customer. In some supply chains; used products can come back into the supply chain in a recycling value. In other words a supply chain is when all of the parties involved are directly or indirectly working for customers. This includes transportation, warehouses, retailers and customers. All of this creates a dynamic and constant flow of information. Walmart is a good example of a supply chain. When a customer buys a product is has been in inventory at the warehouse, delivered by a truck by the manufacturer who deals with packaging and raw materials. Supply and demand is an economic model of price determination in a market. For example, in a competitive market, the unit price for a specific good will vary until it settles at a point where the quantity demanded by consumers, at current price, will equal the quantity supplied by producers, at current price. This results in economic equilibrium for price and quantity. The supply and demand is controlled by the demand of a product, which in turn creates supply. The model shows where the point determines prices and quantities where supply and demand come together. A market has to be created through demand by its customers, and...
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...MULTI LEVEL SUPPLY CHAIN NETWORK Research in Progress Reisich, Friedrich, University of Duisburg-Essen, 2247800, Essen, Germany, friedrich.reisich@stud.uni-due.de Abstract Forrester discovered the amplification and oscillation of order information in supply chains about 55 years ago and called it the Bullwhip Effect. Since then researchers look for reasons and try to find countermeasures. Most of the countermeasures which were formulated in the last decades are based on experiments with simple linear supply chain models consisting of two to four serial levels. In reality supply chains are complex and dynamic systems. In this paper we developed a dynamic simulation model of a complex simulation network and statistically examine whether the countermeasures described in the scientific literature work or do not work. The preliminary results shows us that at least one countermeasure which works perfectly in linear supply chains is also suitable for complex supply chain networks. Keywords: Bullwhip Effect, Forrester Effect, Whiplash Effect, Supply Chain Networks.. IS Research Fundamentals 1 1 Introduction The Bullwhip Effect or Forrester Effect is a major problem in supply chains. It was first discovered by Forrester (1972) who realized that variations of demand increase up as one moves up the supply chain from the ultimate customer to the ultimate producer. This phenomenon is considered one of the main reasons for inefficiencies in supply chain. Since then...
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...CONCEPTUAL VALUE CHAIN MODEL FOR ORIGIN ENERGY 13 Table of Contents EXECUTIVE SUMMARY _____________________________________________________________ c 1 Introduction __________________________________________________________________ 1 2 Background __________________________________________________________________ 2 2.1 Background of Origin Energy ___________________________________________________ 2 3 Literature Review________________________________________________________________ 3 3.1 Supply Chain Management _____________________________________________________ 3 3.2 Quality Improvement Models and Gap Analysis ____________________________________ 4 3.3 Lean and Six Sigma Technology ________________________________________________ 5 4 Discussion & Analysis ____________________________________________________________ 6 4.1 Supply Chain of Origin Energy _________________________________________________ 6 4.2 SWOT Analysis for Origin Energy _______________________________________________ 7 4.3 Supply Chain Operations Reference (SCOR) Model _________________________________ 9 4.4 Conceptual Improvement Model for Supply Chain Management ______________________ 12 4.4.1 Introduction ____________________________________________________________ 12 4.2.2 Assumptions: ___________________________________________________________ 13 4.3.3 Supply Chain Conceptual Improvement Model (SCCIM) _________________________ 13 4.2.4 Key Benefits of the model _________________________________________________...
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...Postponement as Supply Chain Strategy The postponement strategy is based on the following two basic principles of demand forecasting. 1. The accuracy of the forecast demand decreases with an increase in the time horizon. The farther the time window for which the demand is being forecasted, the more inaccurate it will be. The figure graphically represents this effect as a funnel: as time extends farther into the future, the forecast error grows, showing that the forecast demand will have larger and larger variations as time periods progress into the future. 2. Demand projections for a product group are generally more accurate than projections for individual products. For example, it is much easier to forecast the total demand for LCD TVs than it is for an individual TV of a specific brand, model, screen size, resolution, and color contrast ratio. The postponement strategy leverages the above characteristics of demand forecasting. It dictates that the firms should postpone the creation or delivery of the final product as long as possible. For retailers, this takes the shape of postponing the delivery of the final product to its destination, while for assemble-to-order manufacturers this means postponing the final assembly of the product. For manufacturing scenarios like build-to-stock, the postponement strategy may drive pushing the packaging or final assembly of the products, allowing the manufacturer to personalize, configure finished products to customer orders, and...
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