INTRODUCTION AND THESIS OBJECTIVES

Supply chain can be defined as co-operation of various business entities which contain suppliers (acquire raw materials), manufacturers (creation of these raw materials to finished goods), distributors (circulate the finished goods to retailers) and retailers (sell it to final customers). These business entities are connected by transportation, storage facilities and they are incorporated through information, planning and integrated activities.

As demonstrated in Figure 1, supply chain can be segmented into two main processes; (1) The production planning and Inventory control which comprises of the suppliers of the raw materials, manufacturer of the goods, then the storage facility and (2) The distribution and logistics which starts from the storage facility to the distributors and the retailers. These processes are combined together to form an efficient supply chain. The extent of impact of supply chain depends on the design procedure and management of these processes.

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