what is the right supply chan for your product 2.24.docx

what is the right supply chan for your product 2.24.docx -...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Taryn Neals GSC 355 Professor Haksever February 26, 2018 What is the Right Supply Chain for Your Product? Technology has played a huge part in supply chain over the past years. However, performance has never been worse as companies are unable to define what supply chain works best for their product. They are unable to properly predict demand leading to an excess or a shortage of products. Marshall L. Fisher states that the first step is to determine the nature of the product’s demand: is it functional or innovative? A functional product is stable and will not change too much overtime. This can lead to low profit margins as customers do not want to spend much more than the average competitor. An innovative product can lead to higher profit margins but can cause demand to be unpredictable. Because the life cycle is short, companies will have to constantly create newer and innovative products. A supply chain can be divided into two main functions. It can either be physical or it can have a market mediation function. A physical supply chain is when you convert raw materials into finished goods. The demand is predictable, the utilization rate is high, inventory is low, but
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern