1. Supply-Chain Strategy
   1. Supply Chain Defined
      
      
2. Measuring Supply Chain Performance
   1. Inventory Turnover Defined
   2. Cost of Goods Sold Defined
   3. Average Aggregate Inventory Value Defined
   4. Weeks of Supply Defined
      
      
3. Supply Chain Design Strategy
   1. Bullwhip Effect Defined
   2. Functional Products Defined
   3. Innovative Products Defined
      
      
4. Outsourcing
   1. Outsourcing Defined
   2. Logistics Defined
      
      
5. Design For Logistics
   1. Design for Logistics Defined
      
      
6. Value Density (Value per Unit of Weight)
   1. Transportation Mode Defined
   2. Value Density Defined
      
      
7. Global Sourcing
   
   
8. Mass Customization
   1. Mass Customization Defined
   2. Process Postponement Defined
      
      
9. Conclusion

Case: Pepe Jeans

The idea of supply-chain management is to apply a total systems approach to managing the entire flow of information, materials, and services from raw-materials suppliers through factories and warehouses to the end customer. The focus is on those core activities that a business must operate each day to meet demand. The topic is popular because many companies are achieving competitive advantage by the way they configure and manage their supply chain operations. Dell Computer is a good example of effective supply chain management.

Because inventory at each stage of an operation ties up money, it is important that the operations at each stage are synchronized to minimize the size of buffer inventories. The efficiency of the supply chain can be measured based on the size of the inventory investment in the supply chain. Key measures to evaluate supply chain efficiency are inventory turnover and weeks-of-supply. Other measures include the cost of goods sold and the average aggregate inventory value.

Variability within the supply chain magnifies as we move from the customer to the producer in the supply chain. This bullwhip effect indicates a lack of synchronization among supply chain members. Programs like continuous replenishment smooth the flow of materials through the supply chain.

Other supply chain issues occur because of the length of the product life cycle, demand predictability, product variety, and market standards for lead times and service. Products may be either functional staples or primarily innovative and require different management methods.

Outsourcing is moving some of a firm's internal activities and decision responsibility to outside providers. Companies have a variety of reasons for outsourcing but primarily the reasons are to reduce costs and create a competitive advantage. One popular area to outsource is logistics. In determining the shipping mode for an item a key variable is the value density or value per unit of weight.