Designing and Managing the Supply Chain

Chapter 5: The Value of Information

The objective of the value of information is to access the amount an individual or business will be willing to give to receive the information required to enable them to arrive at a decision.

The beer distribution game is an experiential learning business reproduction amusement made by a team of experts at MIT Sloan School of Management in the mid-1960s to exhibit various essential standards of supply chain management (Simchi-Levi, Kaminsky & Simchi-Levi, 2015).

The bullwhip effect is an appropriation channel marvel in which estimates yield supply chain incompetences. It alludes to expanding swings in stock because of changes in client request as one moves higher in the supply chain.

Strategies to alleviate the bullwhip effect problem

  • Coordination with customers and suppliers
  • Improve forecast accuracy
  • Enhance quick decisions
  • Embrace a demand-driven supply chain management strategy


Chapter 9 Procurement and Outsourcing Strategies

Objective Procurement and Outsourcing Strategies is to actualize procurement and merchant working strategies that streamline material, and additionally, administration flows, minimize manufacturer and provider expenses, and enhance quality and client service exhibitions, and make long haul purchaser/vendor associations (Simchi-Levi, Kaminsky & Simchi-Levi, 2015).

Outsourcing is the business routine with regards to settling on an external party to extend services and avail merchandise that customarily were performed internally by the organization’s very own representatives and staff generally to reduce expenses.

Third-party logistics in logistics and supply chain management is an organization’s utilization of outsider organizations to redistribute components of its dissemination, warehousing, and satisfaction services.

Strategic thinking in the supply chain: Supply chain managers should be strategic thinkers who can position their associations for what’s to come. They should be happy with setting up and articulating long haul inventory procedures in the swiftly evolving conditions. They should most likely manage the persistently changing aspects of the supply chain, foreseeing issues and chances before they emerge (Simchi-Levi, Kaminsky & Simchi-Levi, 2015).

Industry Best Practice is an industry acknowledged method for accomplishing something that works.” A best practice is a strategy or procedure that has reliably appeared better than those achieved with different approaches, and that is utilized as a benchmark.

The procurement process is the way toward finding and consenting to terms, and gaining merchandise, services, or works from an external source, frequently through an offering or aggressive offering process. Procurement, for the most part, includes settling on purchasing choices under conditions of shortage.

Inbound logistics alludes to the transfer, stockpiling and conveyance of merchandise coming into a business. Outbound logistics alludes to the equivalent for commodity leaving a business.

Product architecture is the plan by which the practical components of the item are masterminded into physical pieces and by which the pieces associate.



Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2015). Designing and managing the supply chain: Concepts, strategies, and case studies. Boston: McGraw-Hill/Irwin.