Supply chain thesis

Supply chain thesis deals with the issue of stocking and its importance. In the coming paragraphs we will give you a preliminary idea of this process.

Literature review forms the first compliance in the list. The question of managing stock arises only when the company holds stock. Maintaining stock involves tying up of the company’s funds and incurrence of storage and handling costs. If it is expensive to maintain stock, why do companies hold stocks? There are general motives for holding stock
a) Transaction motive emphasizes the need to maintain stock to facilitate smooth production and sales operations.
b) Precautionary motive necessitates holding of stocks to guard against the risk of unpredictable changes in demand and supply forces and other factors.
c) Speculative motive influences the decision to increase or reduce stock levels to take advantage of price fluctuations.

Logistics control thesis is a part of the entire process. A company should maintain adequate stock of materials for a continuous supply to the factory for an uninterrupted production. It is not possible for a company to produce raw material when ever it is needed. A time lag exists between demand for materials and its supply. Also, there exists uncertainty in procuring raw materials in time on many occasions. The procurement of materials may be delayed because of such factors as strike, transport disruption or short supply. Thesis sentences is the first catering.

Therefore, the firm should maintain sufficient stock of raw materials at a given time to streamline production. Other factors which may necessitate purchasing and holding of raw materials stocks are quantity discounts and anticipated price increase. The firm may purchase large quantities of raw materials than needed for desired production and sales levels to obtain quantity discounts of bulk purchasing. At times, the firm would like to accumulate raw materials in anticipation of price rise. Warehousing dissertation forms the major components of the process.

Work in process inventory builds up because of the production cycle. Production cycle is the time span between introduction of raw material into production of raw material into production and emergence of finished product at the completion of production cycle. Till production cycle completes, stock of work in process has to be maintained. Efficient firms constantly try to make their production cycle smaller by improving their production techniques.

Stock of finished goods has to be held because production and sales are not instantaneous. A firm can’t produce immediately when goods are demanded by customers. Therefore, to supply finished goods on a regular basis, their stock has to be maintained. Stock of finished goods has also to be maintained for sudden demands from customers.

Therefore, to supply finished goods on a regular basis, their stock has to be maintained. Stock of finished goods has also to be maintained for sudden demands from customers. In case the firm’s sales are seasonal in nature, substantial finished goods stock should be kept to meet the peak demand. Failure to supply products to customers, when demanded, would mean loss of the firm’s sales to competitors. The levels of finished goods stock would depend upon the coordination between sales and production as well as on productive time.

Supply chain thesis is an important arrangement for fetching the right scenario for the business.