In: Operations Management
To assess your understanding for E- Supply Chain / E- Logistic Management.
Q. How the supply chain design helps to manage the constraints and margins?
(Min. 250 words)
No Plagiarism (copying) please.
Answer:-
A well-designed supply chain can reduce cost, increase revenue, delight customers and provide a competitive edge to an organization in a moving market. Imperatives and margins are normally the expenses and the excess money earned on selling an item to the end customer.
A supply chain is designed to reduce the expenses in a sound manner so the margins are increased by selling the same number of items to the end customers. There are essentially two types of item margins: High edge items and low edge items. Hence, supply chain is fundamentally designed to manage it in two different ways: 1.
The desire of the organization to serve more high benefit items to the customers and 2. The capacity of the organization to quit serving the customers with results of low benefit yields. These are the two significant manners by which supply chain is designed to manage the margins.
Limitations are the costs which the organization acquires in supplying an item to the end consumer. There may be numerous costs involved in it, for example, supplies, expenses of transportation, putting away and retrieving them in a supply chain.
A supply chain is designed so that these expenses are optimized and the effect on benefits is reduced. The different approaches to do so are Improving the use of space in keeping the inventory at a warehouse, utilizing multiple suppliers to procure the crude materials with the goal that we recieve the top notch items at low expenses and no delays, in the nick of time inventory if the crude materials as the early appearance costs in warehouse and late appearance costs in business.
review of customer demand patterns by integrating the supply chain on a level plane and vertically, enhancing the ordering process by removing the waste activities in the process. These ideas of designing a supply chain helps in keeping up the margins and limitations in a supply chain.
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