2. 1 The Supply Chain Supplier Inventory Distributor Inventory Manufacturer Customer Market research data scheduling information Engineering and design data Order flow and cash flow Ideas and design to satisfy end customer Material flow Credit flow

3. 2 Supply Chain Management Facilities, functions, activities for producing & delivering product or service from supplier to customer Production planning Identifying facility locations Distributing product Selecting suppliers Purchasing materials Managing inventories

4. 3 Facilities Plants Warehouses Distribution centers Service centers Retail operations

5. 4 Distribution Rail Truck Water Air Computer Mail Telephone In person

6. 5 The Transportation Model Ship items at lowest cost Sources have fixed supplies Destinations have fixed demand

7. 6 Transportation Problem Grain ElevatorSupply 1. Kansas City150 2. Omaha175 3. Des Moines275 600 tons MillDemand A. Chicago200 B. St. Louis100 C. Cincinnati300 600 tons

8. 7 Network Of Routes Kansas City (150) Omaha (175) Des Moines (275) Chicago (200) St. Louis (100) Cincinnati (300) 4 7 11 6 8 5 12 10

9. 8 Shipping Cost Table Mill GrainChicagoSt. LouisCincinnati Elevator Kansas City$6$8$10 Omaha71111 Des Moines4512

10. 9 The Transportation Tableau To From Kansas City Omaha Des Moines Demand ChicagoSt. LouisCincinnatiSupply 6 7 4 8 11 5 10 11 12 200100300600 275 175 150

11. 10 Solution For Grain Shipment Mill Elevator ChicagoSt. LouisCincinnati Supply Shipped Kansas City 250125150150 Omaha 00175175175 Des Moines 1751000275275 Demand 200100300600 Shipped 200100300 Cost4525