44 ESSENTIALS of Supply Chain Management

and facility and management. The SCOR model does not specifically
include the product design and development process, but it is included
here because it is integral to the production process.

Deliver

These operations encompass the activities that are part of receiving cus-
tomer orders and delivering products to customers.The three operations
we review are management, product delivery, and return processing.
These are the operations that constitute the core connections between
companies in a supply chain.
The rest of this chapter presents further detail in the categories of Plan
and Source. There is an executive-level overview of the three operations
that constitute the planning process and the two operations that comprise
the sourcing process. Chapter 3 presents an executive overview of the key
operations in making and delivering.

Demand Forecasting and Planning (Plan)

Copyright © 2018. John Wiley & Sons, Incorporated. All rights reserved.

Supply chain management decisions are based on forecasts that define

which products will be required, what amount of these products will be
called for, and when they will be needed. The demand forecast becomes
the basis for companies to plan their internal operations and to cooper-
ate among each other to meet market demand.
All forecasts deal with four major variables that combine to deter-
mine what market conditions will be like. Those variables are:

1. Supply
2. Demand
3. Product characteristics
4. Competitive environment

Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons, Incorporated.
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