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an "extended" supply chain includes suppliers of the immediate supplier and customers of the immediate customer; an "ultimate" supply chain includes all of the organizations involved in the supply of the product or service. In each case, the flow of information and finances is part of the chain as well as the product or service. [10]
A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.
Service management in the manufacturing context, is integrated into supply chain management as the intersection between the actual sales and the customer point of view. The aim of high-performance service management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain.
Supply chains for service operations are critical to supply facilitating goods. A typical hospital supply chain is an example. A hospital will use many goods from suppliers to construct and furnish the building. During day-to-day operation of the hospital, inventories of supplies will be held for the operating rooms and throughout the building.
The term "service level" is used in supply-chain management and in inventory management to measure the performance of inventory replenishment policies. [1] Under consideration, from the optimal solution of such a model also the optimal size of back orders can be derived.
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