Chapter1.Iroduction to Supply Chain Management【supply chain】The system of suppliers, manufacturers, transportation, distributors, and vendors that exists to transform raw materials to final products and supply those products to customers.【supply chain management】SCM is a business network covering from buying, making, moving, warehousing to selling.【What makes supply chain management difficult?】Supply chain strategies cannot be determined in isolation. They are directly affected by another chain that most organizations have, the development chain.It is challenging to design and operate a supply chain so that total systemwide costs are minimized, and systemwide service levels are maintained.Uncertainty and risk are inherent in every supply chain.【Strategies for SCM】Global Optimization(全局优化)Managing Uncertainty(管理不确定性)【Why is Global Optimization Hard?】The supply chain is a complex network.Different facilities in the supply chain frequently have different, conflicting objectives.The supply chain is a dynamic system.System variations over time【Why Is Uncertainty Hard to Deal With?】Matching supply and demand is a major challenge.Forecasting doesn’t solve the problem.Inventory and back-order levels typically fluctuate considerably across the supply chain, even when customer demand for specific products does not vary greatly.Demand is not the only source of uncertainty.Recent trends such as lean manufacturing, outsourcing, and offshoring that focus on reduction increase risks significantly.【The three principles of all forecasting techniques】Forecasting is always wrong.The longer the forecast horizon , the worse the forecast.Aggregate forecasts are more accurate.Chapter2.Inventory Management, Supply Contracts and Risk Pooling【何时低(高)于平均需求】If the cost of not selling an additional unit is larger than the profit from selling an additional unit, the optimal quantity in general will be less than average demand, while if the reverse is true, the optimal order quantity in general wi
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