Intro to Business Lesson 2.2.4

Lesson 2.2.4- Production and Supply Chain

Intro to Business
Unit 2: Internal Business
Topic 2: Handling Your Business

Vocabulary:

Bottleneck-refers to any congestion that leads to delays in the production and supply processes.
Supply Chain-refers to a system consisting of connected organizations, information, activities, and, most importantly, resources, that is specifically designed to source the raw material, produce the goods, and send the produced goods to their final destination.

Word Cloud

What are the 4 factors of production?

What is a supply chain?

• ​A network between a company and its suppliers to produce and distribute a specific product to the final buyer

• Supply chain typically starts with the supplier of raw materials and ends with the final consumer of the finished goods

• Supply chain refers to all of the steps required to supply the finished product to the consumer

• Efficient management of the supply chain helps businesses reduce their production costs by eliminating unnecessary tasks and delivering goods and services to the customer quickly and efficiently

​	​
Planning	Set goals, develop strategies, create budgets. Analyze market trends, customer preferences, historical data to estimate future demand. Allows company to determine quantity of goods to produce or purchase from suppliers
Sourcing	Identifying suppliers, negotiating contracts, managing relationships, ensuring quality control. Finding reliable supplies with the necessary raw materials at competitive prices; Negotiating favorable terms with good prices while maintaining quality standards; Strong relationship with suppliers ensures smooth operations and timely deliveries.
Manufacturing	Transforming raw materials into finished products. Assembly lines, quality control checks, inventory management, packaging. Effective manufacturing ensures good are produced timely while minimizing waste and optimizing resources.
Delivery	Involves transportation and delivery of products or services to the customer. Includes: order fulfillment, inventory management, and logistics. Need to consider: transportation costs, delivery speed, and customer preferences.
Returns	The process of handling and managing product returns from customers- Reverse logistics. Activities include: product inspection, refurbishment, disposal, issuance of return authorization, processing of refunds or replacements. Need to manage returns effectively to minimize costs and maintain customer loyalty.

​5 Steps of Supply Chain

Reorder

Reorder the followingA supply chain is required for everyday tasks too.

Think about the process of preparing dinner.

Drag the steps for making dinner into the correct order.

• 
  deciding what to cook and for how many people

• 
  cooking the food

• 
  serving the food

• 
  eating the food

• 
  cleaning the table and dishes after having food

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Multiple Choice

Marvin researches potential suppliers, comparing their prices and delivery options before committing to specific suppliers.

What is Marvin's job in the supply chain?

• 
  procuring raw materials

• delivering the product to the final consumer

• determining appropriate packing for the product

Disruptions in the Supply Chain

What is a Bottleneck?

• Any congestion that leads to delays in the production and supply processes

• Can occur anywhere in the supply chain

Open Ended

What might cause a bottleneck in the supply chain?

Ways to Avoid Bottlenecks

1. Don't Rely on a Single Supplier

2. Plan with a Holistic Approach-consider the overall scenario, try to anticipate issues

3. Integrate Technology into Production

4. Have a Contingency Plan- an alternative set of plans to use if there is a disruption to the original plan

Open Ended

According to the video, what are some issues causing bottlenecks and how are they trying to fix them?

What's Next?

Next Class: Wednesday, 3/11/26

Lesson 2.3.1-- Assignment: Supply Chain Problems Solutions

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