The Sage Course Companion on Operations Management is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like an operations manager but also to think about the subject critically.

Supply Chain Management

Supply chain management

A supply chain consists of a series of activities that moves materials from suppliers, through operations to customers. Each product or service will have its own supply chain, which may involve many organisations in processing, transportation, warehousing and retail.

Activities on the input side to the organisation are termed ‘upstream’ or ‘supply side’ and are divided into tiers of suppliers. Upstream suppliers that supply the organisation directly are termed ‘first tier’ and suppliers that supply first tier organisations are termed ‘second tier’ and so on. Examples of upstream suppliers are component and sub-assembly suppliers.

Activities on the output side are termed ‘downstream’ or ‘demand side’ and are divided into tiers of customers. Examples of downstream customers are wholesalers and retailers.

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