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Production and Operations Management: Manufacturing and Services PowerPoint Presentation for Chapter 12 Managing the Supply Chain Chase Aquilano Jacobs Eighth Edition Irwin/McGrawHill 169。 The McGrawHill Companies, Inc., 1998 2 Chapter 12 Managing the Supply Chain ?Supply Chain Management ?Outsourcing ?Value Density ?Purchasing ?The Firm as Supplier ?JIT Purchasing ?Global Purchasing 3 Supply Chain Management ?Apply a total systems approach to managing the entire flow of – information – materials – and services Raw material suppliers Factories warehouses End customer 4 Outsourcing ?Purchased items account for 60 to 70% of the cost of goods sold. ?Outsourcing allows firms to focus on their core petencies. – Organizations outsource when they decide to purchase something they had been