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PRODUCTION AND

OPERATION MANAGEMENT
RAMSHA BINTE MAJEED 20181-24117
SUBMITTED TO: FAHAD BIN ABDULLAH

April 12, 2020


Contents
Main Answers Section.................................................................................................................................2
What is supply chain management?........................................................................................................2
Discuss briefly the how or when supply chain grew up?.........................................................................2
What is the impact of globalization on the supply chain?.......................................................................3
What is the impact of environmental sustainability and the "green" movement on the supply chain?. 3
What do you think about SCM if you Consider ‘’Pak – China Economic Corridor’’?................................5
REFERENCES:...............................................................................................................................................7
Main Answers Section
What is supply chain management?
A supply chain is the interrelated sequence of processes within a business and across multiple
firms that deliver a service or product to customer satisfaction. More precisely, it is a network
of service, content, monetary, and information flows which connect the customer relationship,
order fulfillment, and supplier relationship processes of a company to those of its supplier and
customers.

Supply chain management defines a variety of different methods that are used to efficiently
coordinate the distribution of goods, finances and information. Typically, these products are
outsourced from any variety of locations. Such sources include vendors, producers,
wholesalers, retailers, and distributors. Products can cross several hands before they meet the
customer.

Discuss briefly how or when supply chain grew up?


Origins of Supply Chain Management

While the principle of supply chain management is definitely as old as trade itself, the concept
only dates back to 1982, when the Financial Times interviewed British logistician and consultant
Keith Oliver used in. Management of the supply chain was at first simpler, concerned only with
the distribution and delivery of products and raw materials to end-users, including related
information flows. Over time it came to involve integration of supply chain operations by
strengthening partnerships over order to give one a competitive advantage.

Growth in the 90s

By the late 1990s, SCM started to appear in the Organizational Managers names. It emerged
from the shadows to stand as a discipline of its own. It extended the concept of supply chain
management to include upstream and downstream value-added material flows, final products
and related information for everyone from suppliers to the end user.

This also referred to the systematic, strategic alignment of conventional business functions and
strategies inside and around the supply chain within the organization. It was at this stage that
SCM started to concentrate more specifically on the growth of consumers and their
understanding of what was of interest. Responding to these issues was crucial, which led to the
introduction of key business processes into the supply chain.

Future of supply chain management

Although it's not easy to forecast the future of supply chain management, there are many
patterns worth paying attention to. Consistent with more sophisticated prescriptive capabilities,
pattern-finding has the ability to revolutionize strategic supply chain management. Other
technical developments such as advanced analytics, block chain, IoT and immersive
technologies will also become more popular, whereas the increasing importance of traceability
and transparency that entail changes towards the dynamics of the current global supply chain.

What is the impact of globalization on the supply chain?


The rise of globalization, supply chain management, has become more complex. Today a
corporation operating in the United States may have its manufacturing facilities around the
world in China, Mexico or Taiwan and its customers. Several companies may outsource their
supply chain activities to third-party organizations around the globe to manage their global
operations. Outsourcing reduces the operational cost of the supply chain but proves otherwise
when not handled effectively.

Take Star Bucks case in view. When Starbucks, a multinational American coffee bean company,
opened its stores around the world, it outsourced much of its supply chain operations. But it
hasn't concentrated on the proper management of the supply chain. As a result, operating
expenses and supply chain running costs increased steeply in 2008, Star Bucks CEO Howard
Schultz ap-pointed Gibbons to manage the supply chain of the company. Gibbons examining
the supply chain of the company found that the outsourcing arrangements were responsible for
around 60 to 70 per cent of operating expenses. He observed that outsourcing allowed the
business to expand globally but it increased the costs associated with it. Consequently, he
wanted to reorganize the supply chain. He devised a 4-step strategy that played a key role in
the success of the business. The organization now effectively operates with 16,000 stores in
more than 50 countries.

From the above case we can conclude that as the businesses travel globally, the difficulty
involved in managing the supply chain increases. The development of the approaches to
minimize the risk therefore plays a critical role. Information technology plays a major role in
mitigating these risks and in controlling the global supply chain.

What is the impact of environmental sustainability and the "green"


movement on the supply chain?
The impact of environmental sustainability and the green movement on Supply chain

Environmental change has created a movement around the world to address the causes of
global warming and create ways to stop it before it is too late. To do this, several countries are
developing laws and legislation directly aimed at reducing carbon emissions and the impact of
greenhouse gases. The reality is that the change in the world is upon us. Not only are we having
climate issues but we are still struggling with a question of resource depletion. Despite
economies like India and China rising at double-digit levels, the world's population is continuing
to expand, causing shortages of various resources that we take for granted. Most customers,
stakeholders and companies are increasingly involved in the rising green movement. Influenced
by the shift in consumer loyalty towards environmentally friendly goods, businesses are
gradually seeking to make their supply chains greener by incorporating sustainability initiatives
through their organizations and supplier relationships.

The recent emphasis on sustainability has led to a rising need for environmentally friendly
choices to be incorporated into supply chain management practices. The Green Sustainable
Supply Chain Management GSCM concept can be described as the process of using
environmentally friendly inputs and turning them into outputs by change agents, which can
then be recycled and reused at the end of their lifecycle, creating a sustainable supply chain.
The entire aim of a sustainable supply chain, while benefiting the environment, is to reduce the
costs.

A Green Sustainable Supply Chain combines ecological considerations and concepts of supply
chain management to assess the environmental effect of supply chain operations within an
enterprise. Businesses are increasingly aware of this integration's significance in creating a
sustainable business strategy. Many are now seeking ideas and advice on how a sustainable
supply chain might be implemented. Not only would a sustainable supply chain be ideal for the
enterprise but also ideal in terms of a minimal environmental impact. The sustainable supply
chain is no longer just about ecological issues but also about productivity production and cost
containment. When companies restructure to reduce the environmental impact of their
businesses, supply chains have become a primary focus field.

Many people believe environmental friendliness raises costs. Most of the businesses have in
the past concentrated on reducing unit costs. Much later, with the advent of foreign trade,
many businesses could make the adjustment and look back at overall landed costs. Many
companies have begun to look at the expense of use of a piece of equipment-total cost of
ownership TCO.

Sustainability is a giant tool for businesses to slash costs. There are several aspects of the
supply chain which could be improved by looking at it from a sustainability perspective.
Consultancy company A.T. Kearney released an overview of businesses submitting information
to the Carbon Disclosure Project that found that more than half of them – along with 25% of
their suppliers – are achieving cost savings as a result of sustainable sourcing practices being
implemented. It is a big action because they assume that at least half of the carbon emissions
from some global companies are due to generated in their supply chains.

The Carbon Disclosure Project 2011 Supply Chain Survey, which includes 57 global companies
and more than a thousand supply chain partners, reveals that 86 per cent of those businesses
gained benefit from discussing their supply chain processes as part of a corporate sustainability
initiative.

What do you think about SCM if you Consider ‘’Pak – China Economic
Corridor’’?
News portals have been full of developments about the China – Pakistan Economic Corridor
(CPEC) since April 2019. The CPEC initiative, which China initially proposed in May 2013 and
which was inaugurated in August 2013, has once again come to the fore. This is due in large
part to the recent signing of an agreement to start work on the $46 billion contract.

A 3,000-kilometer network of highways, railways, and pipelines, the CPEC will connect
Pakistan's Gwadar Port to Kashgar city, Xinjiang province in northwestern China. Obviously, the
route is seen as an alternative to China's existing route of sourcing from the Middle East and
Africa (through Straits of Malacca). CPEC will also become a crucial part of China’s dream of
creating a “Silk Road,” connecting to markets in the Middle East, Central Asia, and Europe.

It is regarded as a win - win situation for Pakistan, in addition to the possible benefits for the
Chinese economy. If the project is implemented as expected it will certainly infuse life into the
fairly fragile economy of Pakistan and its energy and infrastructure sectors. Masood Khan,
former Pakistani Ambassador to China, had believed that Xinjiang and Gilgit-Baltistan would
form "the central plank for new silk routes in the emerging architecture." However, analysts
and commentators often overlook the significance of CPEC for the Xinjiang province of China or
its contribution to the Western Growth Strategy of China.

Amid the development of the eastern side of China, the Chinese government has redirected its
energies to develop the west, and continues to invest heavily in the region. China formally
began implementing its Western Development Strategy (WDS) in January 2000, which included
six provinces and five autonomous regions, including Xinjiang and Tibet. Norihiro Sasaki, of the
Institute of Developing Economies (IDE) in Japan, said that the motives behind the WDS include,
apart from geopolitical reasons, the need to curb the power of the regional government’s
frustration with the centre on development in the western sector.

The geographical location of Xinjiang makes it perfect for a "Look East" policy for China. China
shares its frontiers with 14 nations. For these, the province for Xinjiang borders eight countries:
Afghanistan, India, Mongolia, Kazakhstan, Kyrgyzstan, Tajikistan and Russia. Which makes for
Beijing's strategically important province. Xinjiang is troubled by a Muslim Uighur secessionist
movement and increasing terrorist activity linked to the Eastern Turkestan Islamic Movement
(ETIM), founded by Uyghur al-Qaeda.
It is here that Pakistan and the economic corridor join. Pakistan is essential to the success of
this strategy, given its proximity to Xinjiang in large part. Positioned at the crossroads of the Silk
Road and sandwiched between China and the West, Pakistan needs cooperation to stabilize the
situation in Xinjiang and the surrounding area. Anecdotal evidence indicates that Muslim
Uighurs in Pakistan, in the form of training and safe havens, and their movement have got
support from jihadi groups.

Through assistance from the government of Pakistan, the Chinese government has hoped to
counter international support for anti- activities to the Uyghur community in Xinjiang. The
Pakistani government has come forward to support China at its best. Even though Pakistan's
ability to tackle the issue appears weak, China has expressed doubts about its "all-weather
friends" intentions.

Given the isolation of Xinjiang from China's coastal cities, it seems wise to give the province
benefits from Pakistan's economic relations and prompt links to the Middle East and other
regions. Pakistan has been working on the implementation of China's proposal to establish a
Special Economic Zone (SEZ) in Kashgar and Khordos in Xinjiang.

The plans include the establishment of "manufacturing hubs, trading houses, and clearing
houses." As Masood Khan has said, long-term plans include the option of creating a trans-
regional economic zone comprising China, Pakistan, Afghanistan, and Central Asia.

While most of the proposals look good on paper, apart from ecological problems and Pakistan's
internal political issues there are inherent challenges to the project. The key problem is the
deteriorating security situation in some Pakistani provinces through which the corridor will
pass. In addition, China and Pakistan have already signed several Memoranda of Understanding
and Contracts, but not all of them have materialized as fruitfully as they had hoped. Sakib
Sherani, a former economic advisor to the Pakistani government, tried to evaluate the project's
economic benefits for Pakistan and pointed out possible issues that could make the venture
unfavorable to Pakistan. Over recent days, general opposition to the project has also become
more pronounced in Pakistan. Any long-term delays in CPEC implementation would not only
hinder Pakistan's expectation for improved infrastructure and energy supply, but would also
hamper China's hopes of addressing its WDS and the Silk Road project effectively. Indeed, much
is at stake, especially in view of the increasing violence and instability in some areas of Pakistan,
which are crucial for CPEC's success.
REFERENCES:
 Krajewski, L.J., Malhotra, M.K. and Ritzman, L. (2015) Operations Management:
Processes and Supply Chains. 11th Edition
 Cooper, M.C., Lambert, D.M., & Pagh, J. (1997) Supply Chain Management: More Than a
New Name for Logistics. The International Journal of Logistics Management Vol 8, no.1,
pp 1–14
 "Supply Chain - School of Operations Research and Information Engineering - Cornell
Engineering". www.orie.cornell.edu. Retrieved 26 July 2017
 Harland, C.M. (1996) Supply Chain Management, Purchasing and Supply Management,
Logistics, Vertical Integration, Materials Management and Supply Chain Dynamics. In:
Slack, N (ed.) Blackwell Encyclopedic Dictionary of Operations Management. UK:
Blackwell.

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and I am getting fat in this quarantine and ok so let’s talk about your projects and assignments.
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really want to eat and I am getting fat in this quarantine and ok so let’s talk about your projects
and assignments. They are too much and I am getting tired so much depression and pressure
not only My name is what we can do for you and hi I am what is this behavior and I really want
to eat and I am getting fat in this quarantine and ok so let’s talk about your projects and
assignments. They are too much and I am getting tired so much depression and pressure not
only this but corona. I want a break as well as food no fast food. Ok I think it’s enough. Isn’t it?
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is it is it is it is it is it is it is it is My name is what we can do for you and hi I am what is this
behavior and I really want to eat and I am getting fat in this quarantine and ok so let’s talk
about your projects and assignments. They are too much and I am getting tired so much
depression and pressure not only
My name is what we can do for you and hi I am what is this behavior and I really want to eat
and I am getting fat in this quarantine and ok so let’s talk about your projects and assignments.
They are too much and I am getting tired so much depression and pressure not only this but
corona. I want a break as well as food no fast food. Ok I think it’s enough. Isn’t it? Hi is it is it is
it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it is it
is it is it is it is it is My name is what we can do for you and hi I am what is this behavior and I
really want to eat and I am getting fat in this quarantine and ok so let’s talk about your projects
and assignments. They are too much and I am getting tired so much depression and pressure
not only

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