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discuss the role Supply Chain Management plays in contributing to the effectiven

ID: 366122 • Letter: D

Question

discuss the role Supply Chain Management plays in contributing to the effectiveness of Operations Management function,

analyze the relationship with Suppliers in Purchasing,

evaluate the elements in a Supply Chain Distribution In the following questions:

1) Analyze two advantages and two disadvantages of Make versus Buy.

2) Propose three examples of the three types of Materials Handling: Manual, Mechanized, and Automated.

3) Analyze one advantage and one disadvantage of centralized and decentralized warehouse and distribution systems in a Business Organization

4)Analyze one advantage and one disadvantage of outsourcing versus owning or leasing by a Business Organization.

Explanation / Answer

Supply Chain Management (SCM) plays a pivotal role for an effective Operations Management strategy. When a product is launched by an organization, it needs to make sure that the product is available in appropriate quantities across all the sales and distribution centres. If this does not happen then the organization can take a hit in sales and revenues, and can even result in customers switching to another brand because the product was not available when actually required.

Benefits of Supply Chain Management :

Supplier Relationship

1) Make vs Buy

Advantages :

Disadvantages :

2) Materials Handling Examples :

3) Centralized Warehouse

Advantage - Reduction of operating costs

Disadvantage - Increased shipping costs

De-centralized Warehouse

Advantage - Reduction in delay of material handling

Disadvantage - Increased operating costs

4) Outsourcing

Advantage - Financial benefit (reduced fixed assets)

Disadvantage - Dependence on supplier

Owning / Leasing

Advantage - Control over production costs

Disadvantage - Increased time and effort of resources