Global Supply Chain Managment (Evaluating the supply chain Essay

Global Supply Chain Managment (Evaluating the supply chain implications for an organisation) - Essay Example Along with fulfilling the demand there must be the management of inventory where the inventory level is not that much as compare to the cost of holding the inventory rises. The business cycles are determined where there are booms and slumps and the ways that are integrated strategically to smoothen the business cycle. The implications of getting green chain and the strategies how the green chain can be followed are kept in mind. The benefits and the disadvantages of having a green chain along with the challenges faced in getting a green supply chain are discussed. The risks associated with the supply chain are elaborated and the sufficient measures along with strategies that can be followed to minimize the risks. The time associated with some of the factors that are applied in the supply chain in order to get benefit from it and how the benefit can be utilized is discussed. 1) The Beer Game For the better understanding of the supply chain where the phenomenon of buying and selling is elaborated, a game is observed. A beer company is made and the supply chain is created. The different factors of the supply chain are understood better when they were applied and the inventory level changed accordingly. It is basically about elaboration of demand and supply for the product creating the cause for change in the inventory level in the company. The inventory level was managed by the management of the company in such a way that they do not run out of stock. The proper management of the inventory and handling of the demand and supply shall impact the management of the inventory. The risks of not been able to fulfill the demand are associated with the inventory level where the company runs out of stock and the customers’ orders cannot be satisfied (Simon, et al., 2000). On the other hand where the demand of the product is not appropriately ascertained and the company holds much more inventories then needed and incurs a holding cost. The difficulties faced included the poor management of the inventory as a result of late orders and delays along with the poor estimate of the demand of the product. Supply Chain Behavior Theory The theory of supply management consists of three elements which are description, prescription and the identification of alleged trends which were completely ignored in the beer game hence causing issues to rise (John, et al., 2006). Supply chain management and purchasing are often termed as similar which is ambiguous. Supply chain management is a much wider term including the operation management and logistics that the company uses in order to rotate a complete business cycle from purchasing to selling. When the company shifts from descriptive to prescriptive, problems rise. The prescriptive is more like a prescription which involves the working characteristics of the supply chain management. The trends analyst considers co operations rather than competitions. The trend identification is better observed in measuring the p erformance of the various factors of the su