OPMG 200
Supply chain and Supply Chain Optimization
Lakewood University
OPMG 200: Operations Management
Supply Chain and Supply Chain Optimization
A supply chain is the entire network between a company and the suppliers it uses to
produce and distribute products. The supply chain represents every step necessary to get a
product from its original state to the consumer. Supply chain optimization is the process by
which we improve the performance and efficiency of the tools and processes used by
manufacturing and distribution supply. Some of the benefits of supply chain optimization are
reduces surplus inventory, improved customer service, decreased lead times, lower logistics cost
levels, and simplified supplier collaboration.
As it today stands, a product that I believe would be challenging for a supply chain
manager to build would be vehicles. This would be difficult due to the worldwide semiconductor
shortage. New vehicles are built out with an abundance of microchips that control everything
from window motors to the navigation systems. This example also highlights very well what
happens to a business when the supply chain stops working. The semiconductor shortage is
estimated to cost the auto industry over $200 billion in lost revenue. This has also caused a
forecasted decline in production of over 4 million vehicles. New vehicle sales also tumbled this
year as seen with a 26% decline in September alone. This has caused a huge fluctuation in supply
and demand. With minimum inventory at dealerships, consumers are hungry for inventory and
prices are increasing. This has also caused a hug spike in the used vehicle market. For instance, I
was offered about $5000 less than what I paid for my 2013 Ford F150 eight years ago as a trade
Supply chain and Supply Chain Optimization
Lakewood University
OPMG 200: Operations Management
Supply Chain and Supply Chain Optimization
A supply chain is the entire network between a company and the suppliers it uses to
produce and distribute products. The supply chain represents every step necessary to get a
product from its original state to the consumer. Supply chain optimization is the process by
which we improve the performance and efficiency of the tools and processes used by
manufacturing and distribution supply. Some of the benefits of supply chain optimization are
reduces surplus inventory, improved customer service, decreased lead times, lower logistics cost
levels, and simplified supplier collaboration.
As it today stands, a product that I believe would be challenging for a supply chain
manager to build would be vehicles. This would be difficult due to the worldwide semiconductor
shortage. New vehicles are built out with an abundance of microchips that control everything
from window motors to the navigation systems. This example also highlights very well what
happens to a business when the supply chain stops working. The semiconductor shortage is
estimated to cost the auto industry over $200 billion in lost revenue. This has also caused a
forecasted decline in production of over 4 million vehicles. New vehicle sales also tumbled this
year as seen with a 26% decline in September alone. This has caused a huge fluctuation in supply
and demand. With minimum inventory at dealerships, consumers are hungry for inventory and
prices are increasing. This has also caused a hug spike in the used vehicle market. For instance, I
was offered about $5000 less than what I paid for my 2013 Ford F150 eight years ago as a trade
