ABSTRACT

This chapter describes the basic components of a supply chain. The basic unit is the ITO model. Inputs are transformed into outputs at numerous stages along the supply chain. The ITO processes are designed to facilitate the physical flow of goods and services. In addition, they also depend on information flow and funds flow. Supply chains are affected by both internal (within the organization) and external (the business environment) influences. There are benefits that result from good supply chain systems; however, there are obstacles that make supply chain system design and implementation difficult.