1. FACULTY OF COMPUTER SCIENCE AND MATHEMATICS
INTRODUCTION TO E-BUSINESS (ITS450)
SUPPLY CHAIN
Sharifah Syahirah bt Syed Muhd Kamal Nur Hakma bt Juhari Nur Farahain bt Supian
(2009249956) (2009600066) (2009627474)

2. DefinitionDefinition
A system of organizations, people, technology, activities,
information and resources involved in moving a product or
service from supplier to customer.
CHRISTOPHER [1998]CHRISTOPHER [1998]
A network of connected and interdependent organizations mutually
and co-operatively working together to control, manage and improve
the flow of material and information from suppliers to end users.
JOHANSSON [2002]JOHANSSON [2002]
A system whose constituent parts include material suppliers,
production facilities, distribution services and customer linked together
via the feedforward flow of materials and the feedback flow of
information

3. Part of SuPPly ChainPart of SuPPly Chain
 Supply focuses on the raw materials supplied to
manufacturing, including how, when, and from what
location.
 Manufacturing focuses on converting these raw
materials into finished products.
 Distribution focuses on ensuring these products
reach the consumers through an organized network of
distributors, warehouses, and retailers

4. SuPPly Chain DeCiSionSuPPly Chain DeCiSion

5. Location decisionLocation decision
 production facilities, stocking points, and sourcing
points is the natural first step in creating a supply chain.
 The location of facilities involves a commitment of
resources to a long-term plan
 great significance to a firm since they represent the
basic strategy for accessing customer markets, and will
have a considerable impact on revenue, cost, and level
of service.

6. Production decisionProduction decision
products to produce, and which plants to
produce them in, allocation of suppliers to
plants.
• Operational decisions focus on detailed
production scheduling.
- include the construction of the master
production schedules, scheduling
production on machines, and equipment
maintenance.

7. inventory decisioninventory decision
inventories are managed and exist at every stage of
the supply chain as either raw materials, semi-
finished or finished goods.
primary purpose to buffer against any uncertainty
that might exist in the supply chain.
include deployment strategies (push versus pull),
control policies --- the determination of the
optimal levels of order quantities and reorder
points, and setting safety stock levels, at each
stocking location.

8. transPortation decisiontransPortation decision
closely linked to the inventory decisions, since
the best choice of mode is often found by
trading-off the cost of using the particular mode
of transport with the indirect cost of inventory
associated with that mode.
customer service levels, and geographic location
play vital roles in such decisions.
Shipment sizes (consolidated bulk shipments
versus Lot-for-Lot), routing and scheduling of
equipment are key in effective management of the
firm's transport strategy.

9. Supply Chain FlowSupply Chain Flow
3 main flow:
 information flow
 material flow
 cash flow
information flow: interaction between customer and
supplier
material flow: deliver the material to the end-user via
procurement of raw materials, manufacturing, distribution and
customer service.
cash flow: customer pay the material cost.

10. Supply Chain FlowSupply Chain Flow

11. Supply Chain DynamiCSSupply Chain DynamiCS
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 Supply chain do not always behave as expected
 Excessive demand variability – due to information
distortion in supply chain
 Distortion known as Bullwhip of Forrester effect
 Result of uncertainties is the supply chain risk.

12. Supply Chain DynamiCSSupply Chain DynamiCS
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