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The scope of supply chain management
Supply chain management includes the determination of suppliers; distributors, distribution channels and warehousing; manufacturing information and manufacturing schedules; capacity requirements and means of order fulfilment; means of finance; means of information handling; credit and cash transfers; methods of accounts payable and receivable; forecasting methods; means of managing customer information. Often there are misconceptions about supply chain management and it is confused with logistics. Logistics concerns the physical material flow in supply chain processes. The purpose of SCM is to integrate all tasks associated with the bi-directional flow of materials, information and finance into organised, coherent, managed processes in order to provide end-to-end management and control.
The processes discussed in this section include:
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on may 1, counts, inc has a balance of $1000 in office supplie. during may the company buys $500 more of the office supplies. on may 31 the company counts the supplies and finds 20
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Example of Miller-Orr Model XYZ's management has put the minimum cash balance to be equivalent to Sh.10, 000. The standard deviation of daily cash flow is of Sh.2, 500 and the
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