Supply Chain Management in the Computer Industry - Coursework Example

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This paper "Supply Chain Management in the Computer Industry" uncovered how the efficient use of supply chain management results in a company having the potential to secure additional market share by end-product price savings generated by internal cost reductions…
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Download file to see previous pages The field of operations management is an area that represents the control and design of business operations concerning the production of products or services (Slack et al, 2010). It covers a broad range of business operational processes that can include but is not limited to, production, design, the efficient use of resources, the delivery of components and producing products or services to fulfill market needs (Barratt et al, 2011). Operations management is a critical aspect that aids a company to achieve profitable bottom-line results through its control and overseeing of resources, ordering processes for raw materials, components, production line functions (supply chain) and supplier costs (Bozarth et al, 2008). Operations management uses a hierarchy that represents the analysis of situations and then issues instructions that utilize the operations of the company to accomplish objectives (Bozarth et al, 2008).  Supply chain management is the transformational process where raw materials and components are converted to finished products.  The core of this exploration delves into supply chain management as it represents the means by which a company manufactures products to meet marketplace demands. It is a highly complex operation that entails balancing supplies (raw materials and components) to meet at timed points in the production cycle (Burns and Stalker, 2011). Supply chain management is the method, systems, processes and structure by which raw materials and component part deliveries are planned and timed in order to keep a supply chain production system moving (Jacobs, 2014). The computer industry is a prime example regarding the use of supply chain management. The first reason is due to the diversity of model configurations consumers can purchase (Krichen, and Ben Jouida, 2015). A singular model can vary in terms of RAM, disk storage, graphics card type and other areas (Tayur et al, 2012). This may seem simple enough, but the slight variations in terms of screen size, desktop versions portables, access ports, and other components can result in a broad array of models and configuration types (Tayur et al, 2012).  The other characteristics of the computer industry are that models change almost yearly (Purdue University, 2018). This means that companies have to estimate the demand for these varying models to be placed in distribution points for delivery to department and outlet stores (Rushton, 2014). The problem is compounded by the fact these variations regarding inventory stock levels can change in the marketplace due to shifting consumer demands, or competitor innovations (Khajavi et al, 2014). These factors mean that computer companies have to change their production output runs during the course of the year to meet these shifts in demand (greendaymbg3bm0741s1, 2017). This can represent component part changes in terms of ordering lots to meet new output configurations that can shift rapidly. If a computer company is not able to shift their production runs to meet these demand, they will lose sales to competitors that are keeping pace with marketplace dynamics (Fisher et al, 2015). This is where the supply chain fluctuates in terms of components needed (Carvalho. Et al, 2012). This is a function of supply chain management reconfiguring the number of component parts needed to produce models to meet demand (APICS Insights and Innovations, 2017). It is a balancing process of aligning suppliers with production outputs by model configuration types. The problem is to have these components delivered to the supply chain in the quantities needed at the right time in order to meet the output numbers established for the different models (APICS Insights and Innovations, 2017). ...Download file to see next pagesRead More
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