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Supply Chain Management - Research Paper Example

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Supply Chain Management Name Institution Supply Chain Management An effective supply chain will involve efficaciously management of the movement and storage of raw materials, the processing of goods, and the finished products from their source to the consumers…
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Supply Chain Management
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Download file to see previous pages In this regard, this involves the processes of demand management and production management. Based on the foregoing, this expose elucidates on the link between both demand management and product planning with logistics planning. Bowersox, Closs, and Cooper (200_) noted, “The increasing complexity of product offerings and marketing tactics in conjunction with shorter product life cycles requires increased accuracy, flexibility, and consistency in determining inventory requirements” (p. 134). In effect, a firm should seek to ensure that their management of the supply chain was accurate, consistent, and allowed flexibility along the supply chain. This effectively inks demand management and logistics management since “demand management systems seek to provide such capabilities” in two different ways (Bowersox, Closs, & Cooper, 200_, p. 134). First, Bowersox, Closs, and Cooper (200_) noted, “Demand management develops the forecast that drives anticipatory supply chain processes” (p. 134). In effect, a firm will determine the amount of goods to produce and its requirements in terms of stock based on a firm’s projections. Secondly, Bowersox, Closs, and Cooper (200_) noted, “Demand management process focuses on creating forecast consistency across multiple products and warehouse facilities” (p. 135). ...
m should balance between the capability of its resources, including human resources, and the manufacturing stock while identifying the optimum point, which is the ideal point of production. In order to achieve the optimum point of production and supply goods to customers, firms must practice effective approaches to production planning. Consequently, the need to forecast and identify the optimum point in production links product management to logistics planning. Bowersox, Closs, and Cooper (200_) support this argument and noted, “Production planning uses the statement of requirements obtained from demand management in conjunction with manufacturing resources and constraints to develop a workable manufacturing plan” (p. 135). In this case, a firm forecasts using this statement to identify the items required and the time when required by consumers, which enables the firm to manage its resources effectively to produce the desired goods. One of the elements in logistics planning involves a firm’s responsiveness to their customer’s needs. In this case, a firm should always make a product available to their customers when required. In effect, a firm’s production planning should be effective to ensure that its products were always available to their customers. Bowersox, Closs, and Cooper (200_) noted, “Production planning identifies the items that should be produced in anticipation of the need to remain within production constraints and yet minimize inventor” (p. 135). For this reason, production planning plays an integral role in logistics planning. In conclusion, effective logistics planning should involve accuracy and consistency in the forecasting of the required products by consumers, which is demand planning. In addition, demand planning will enable a firm ...Download file to see next pagesRead More
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