Managing Supply Chain Inventory: Pitfalls and Opportunities.Magazine: Spring 1992: April 15 1992 Reading, Time: 23 min.Most manufacturing enterprises are organized as networks of manufacturing and distribution sites that procure, raw materials. Transform them into intermediate and, finished products and distribute the finished products to customers. The simplest. Network consists of one site that performs both manufacturing and distribution. More, complex networks such as those required. To manufacture mainframe computers span multiple, sites that may be scattered around the world.We call these networks supply chains or, value-added chains as shown in Figure 1. Often multiple managers - manufacturing,,, Operations logistics material,,,, distribution and transportation managers - have responsibility for different parts of. A chain. Overall operational performance as part, of the finished product ', s cost may be the responsibility of the product. Division 's general manager.Managing a supply chain is very different from managing one site. The inventory stockpiles at the, various sites including. Both incoming materials and finished products have complex, interrelationships. Efficient and effective management of inventory. Throughout the supply chain significantly improves the ultimate service provided to the customer. In this paper we describe,, The many pitfalls of managing supply chain inventories and suggest opportunities for improving management and control. Throughout. The discussion we draw, upon our knowledge and experience of supply chain management at electronics computer and automobile,,, Companies.
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