M.COM SEMESTER – IV (CBCS)

BUSINESS STUDIES (MANAGEMENT)

SUPPLY CHAIN MANAGEMENT LOGISTICS

Q.10 Write a brief note on forms of
supply chain networks.

ANS:

Supply chain networks exhibit various models
that aid in understanding the various optimization methods used for studying
uncertainty and scenario modelling. As shown below, there are six distinct
supply chain network models.

1. Producer Storage with Direct
Shipping:

In this model, goods are transported directly
from the manufacturer’s starting point to the end customer’s destination point,
bypassing the retailer. The retailer accepts the order and initiates the
delivery request. This is also known as drop-shipping because the product is
delivered directly from the manufacturer’s location to the customer’s location.

2. Producer storage with direct shipping
and in-transit merge (crossdocking):

It is like pure drop-shipping or moving, but
the difference is that pieces of the order come from various locations and are
merged into one so that the customer receives a single delivery.

3. Distributor storage with package
carrier delivery:

When inventory is not owned by the
manufacturers at the plants, but rather by merchants/retailers in intermediate
warehouses, package carriers are used to ship goods from the intermediate
location to the final customer.

4. Distributor storage with last-mile
delivery:

When a merchant/retailer delivers the goods
ordered by the customer to the customer’s home rather than using a package
carrier, this type occurs.

5. Producer or distributor storage with
customer pickup:

The inventory is stored at the manufacturer’s
or producer’s warehouse, but customers place their orders online or by phone
and then come to pick-up points designated for collecting their orders.

6. Retail Storage with Customer Pickup:

This is mostly used when inventory is kept
locally at retail stores; customers walk into the store or order something
online or over the phone and pick it up at the store. Customers’ preferences
are used to make distribution system decisions. This, in turn, affects the
demand for the product or products as well as the cost of the distribution
arrangement.

 

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