Supply Chain Fundamentals: Theory and Practice

The present work, titled: Fundamentals of Supply Chain, Theory and Applications, is aimed at the general public interested in understanding the principles that govern this vital activity in commercial operations, both locally and globally. To achieve this, the work is divided into chapters.

Chapter 1 describes the basic concepts to be discussed, as well as the history and importance of the supply chain in our current times, considering the global environment of recent years, including the chip war, the Russia-Ukraine war, and the strategic role played by countries like Mexico. The chapter concludes with a description of the potential future of the supply chain due to the new normal and emerging technologies such as IoT and AI, among others. The scope of the book is established in the fields of inventory, warehouse control, transportation methods, design, demand calculation, and pricing of supply chains, as well as the importance of information technologies.

Chapter 2 provides a description of inventories, how they are controlled, how their demand is calculated and replenished. Exercises are included for better understanding.

Chapter 3 explains the types of warehouses that exist, how outbound flows are managed, what identification codes are, RFID standards and support technologies, storage cycles, types of storage racks, warehouse management systems, and their costs. It concludes with application exercises.

Chapter 4 describes the means of transportation, the types that exist, and their selection criteria. It concludes with detailed application exercises based on Excel Solver.

Chapter 5 offers the reader an understanding of what supply chain networks are and how they are designed, their characteristics by network type, and how they are selected. It also concludes with detailed application exercises based on Excel Solver.

Chapter 6 describes demand forecasts and their calculation types, both qualitative and quantitative. It explains what forecast errors are and how they affect trends and seasonality. Calculation exercises are included for comprehension.

Chapter 7, building on the knowledge acquired, explains how to set prices in the supply chain, both by revenue in multiple customer segments and by capacity allocation within those segments. Calculation exercises are provided throughout the chapter for better understanding.

Chapter 8 describes the importance of information and communication technologies in the supply chain. It recommends the 10 most recognized software platforms and includes a final practical application using Megaventory software, one of the most representative.

Chapter 9 references another complementary modality to the supply chain, e-Procurement, describing its history and operation as well as the 5 most popular software platforms. A practice exercise is offered to appreciate how it works with the Market Dojo application software.

Finally, Chapter 10 allows us to corroborate other types of software applications that are now more focused on the supplier’s perspective. The 5 most popular software tools are described. A practice exercise is provided to appreciate how it works with Fishbowl Inventory application software.