A supply chain encompasses all the resources and processes required to fulfill the demand for a product. A properly functioning supply chain is critical for a firm to be able to equate supply and demand at a reasonable cost. We first review common measures of supply chain performance and inventory related costs. We next discuss how facility choices, transportation modes, inventory policies, and information structures interact to determine the profitability and responsiveness of a supply chain. We conclude with common criteria for categorizing supply chains.
Lariviere, Martin. 2008. Supply Chains. 2