5.6 Production Planning involves SUPPLY CHAIN
WHAT’S A SUPPLY CHAIN ???
supply chain → network of people/firms/resources/business operations/technologies involved to create a good supply chain management SCM - maintain + control sequence of activities from production to delivery SCM “is about planning and organizing production as well as the distribution of finished goods”
- oversee movement + storage of raw materials - semi finished stuff - finished stuff
- LOCAL SUPPLY chain -
- involves less transport so saves time therefore more efficient
- less pollution
- less prone to disruptions
- GLOBAL SUPPLY CHAIN
- transactions at an international level
- i.e. fruits and veggies across international borders
- efficient because of benefits of offshore production
- less sustainable, bigger environmental impact
- MNCs rely on global supply chains
