Тип Работы : Assignment

Тип Работы : Assignment

1.2Supply chain, usually performs two main functions: the physical and mediation. The physical function of the supply chain, in principle, is clear: the materials are transformed into the details, and they, in turn, into finished products, all of it one way or another moves in space. Intermediary function is less obvious but no less important - the market has come to what consumers need, and most importantly on time.During the execution of these functions, of course, identifies some of the costs. During the execution of physical function in the company having production costs, transport and storage. If the mediation function means certain costs. When supply exceeds demand, the company is forced to cut prices and sell at a loss, but when demand exceeds supply, there are lost revenues and dissatisfied customers.In a predictable demand for functional products, such as consumer goods that have a long life cycle costs of mediation are relatively small. Therefore, companies that produce them, we must focus on reducing the physical costs, which is especially important at a high elasticity of demand for functional foods. Such companies usually use those information systems that allow for the planning of production resources (MRP). The software used for this purpose, allows you to manage orders, production and supply in such a way as to reduce inventory throughout the supply chain and increase production efficiency. The most important in such cases, the information - is information about events, it is within the supply chain, which allows suppliers, manufacturers and sellers to coordinate their actions in order to meet foreseeable demand at the lowest possible cost.This approach, however, is absolutely not suitable for products for which demand is very difficult to predict, or is not possible, and the life cycle is much shorter. Examples include various innovative products, which represent the last word in technology or fashion. In this case, are the dominant cost of mediation. In this critical information is not in the supply chain, and the market.