ABSTRACT

Supply chain management considers issues related to managing the flow of materials, products, and information into and out of the firm. Supply chain management objectives are to meet customer service expectations, while controlling costs. This chapter discusses the importance of procurement or purchasing, and compares two key types of production operations systems: MRP versus JIT. Traditionally, supply chain management has focused on inventory management practices and efficient transportation. Recent advances in information technology are providing more relevant and timely data, allowing agribusiness firms to more efficiently manage their supply chains.