Value of information.

Inventory Management, Risk Pooling.

Supply Chain Integration

Network Design.

Distribution Strategy.

Supply Contract.

Strategic Alliance.

What makes SCM difficult / to reach “global optimum”?

• Different faculties have different goals.
• Supply Chain is complex network.
• The chain is dynamic.
• System variations over time.

Key issues in SCM

• strategic level
• tactical levels
• operational level

1. Inventory Management & Risk Pooling

Single Stage Inventory control

Economic lot size model:

• Demand := $$D$$ constant.
• Order Quantity: $$Q$$
• fixed cost := $$K$$, per item warehouse order.

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