
Lecture one:Introduction to supply chainmanagement (SCM)Dr.Wang,Zhang-qiong王长琼WuhanUniversityof TechnologyMarch,2017Designing and Managing the Supply Chain,WHUT,2017
Lecture one: Introduction to supply chain management (SCM) 1 Dr. Wang, Zhang-qiong 王长琼 Wuhan University of Technology March, 2017 Designing and Managing the Supply Chain, WHUT, 2017

Objectives:1.1WhatisaSc?1.2WhatisSCM?WhatactivitiesinSCM?1.3ComparingSCMandLM(learnbyyourselves)1.4WhatChallengesinSCM?1.5CriticalAspectsofSCMAssignment:Walmart's Case study
Objectives: 2 1.1 What is a SC? 1.2 What is SCM ? What activities in SCM ? 1.3 Comparing SCM and LM (learn by yourselves) 1.4 What Challenges in SCM? 1.5 Critical Aspects of SCM Assignment: Walmart’s Case study

1.1What is a Supply Chain?WhatdoesaSClooklike?DefinitionsofSC?Whoarethemembers?2
1.1 What is a Supply Chain? 3 What does a SC look like? Definitions of SC ? Who are the members?

Picture 1GoodsInformationProductsupplyCustomerdemandFinished goodRawmaterialsWorkinprogressXSupplier's supplierEndconsumerReverse flows.:ReverseFunds- Goods,-InformationThe supply chain of a cup-Packaging materialof tea (or coffee)-Transportation equipment-thereverseflow offunds
Picture 1 4 The supply chain of a cup of tea (or coffee) Reverse flows.: - Goods, - Information -Packaging material, -Transportation equipment -the reverse flow of funds

Picture 2.Abicycle把立headset车座鹤管cablesStemsaddle车架坐管前叉forkseat Dostframes碟测轮胎tirediso-Brake车酬牙盘车辆条cranksetspokes曲辆cranks花鼓bub卡飞链条frecwheelschain5
5 Picture 2. A bicycle

asupply chain of a bicycleCustomerRetailerTireRubberMfgSupplierHardwareSupplierGearSupplierSupplierWholesalerCustomerPedalSupplierSupplierBicycleRetailerCastingSmelterPlantWholesalerCustomerFrameSupplierRetailerPigmentSupplierPaintRetailerCustomerSupplierChemicalMfgWho are involved in this supply chain ?6
6 a supply chain of a bicycle Who are involved in this supply chain ?

TheScNetwork~ThelogisticsfacilitynetworkWarehouses andManufacturersSuppliersdistributioncentersCustomersManufacturingcostsTransportationcostsTransportationcostsMaterial costsInventorycosts
7 The SC Network ~ The logistics facility network

Definitionof supplychainAsupplychainisanintegratednetworkofresourcesand processes, or logistics network, that is responsiblefortheacguisition of raw materials,the transformationofthesematerialsintointermediateandfinishedproducts, and the distribution of the finished products tothefinalcustomers.8
- A supply chain is an integrated network of resources and processes, or logistics network, that is responsible for the acquisition of raw materials, the transformation of these materials into intermediate and finished products, and the distribution of the finished products to the final customers. 8 Definition of supply chain

asimplestsupplychainTwoormorepartieslinkedbyaflowofresourcestypically material, information, and money-that ultimatelyfulfillacustomerrequest.Information (order)Information(status)Material (delivery)0000000000Money(payment)9
a simplest supply chain 9

The key points in a supply chain:Flows of products and services from/between*Rawmaterialsmanufacturers/suppliers*Intermediateproductsmanufacturers*Endproductmanufacturers*WholesalersanddistributorsandRetailersConnected by transportation and storageactivities Integrated through information, planning, andintegration activities
10 • Flows of products and services from/between: Raw materials manufacturers /suppliers Intermediate products manufacturers End product manufacturers Wholesalers and distributors and Retailers • Connected by transportation and storage activities • Integrated through information, planning, and integration activities The key points in a supply chain: