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Assignment#2 Bus515

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Assignment #2
Chain Management at Durham International Company (DIMCO)
Latrail Hayes
BUS515 – Operations Management
Dr. Travis O Davidson
25 July 2012
Strayer University
Summer 2012

Determine whether integration efforts should start with suppliers, distributors or both. Explain the rationale for your decision. By definition, a supply chain “is the network of activities that deliver a finished product or service to the customer” (Reid and Sanders, 2010, p. 99). Aspects of the supply chain include raw materials or parts, manufacturing, storage, tracking, distribution and, ultimately, delivery of the product or service to the customer. The effectiveness and efficiency of the supply chain is dependent upon how well the companies involved integrate, or in other words, how well they work together to make, produce, distribute and deliver a product or service to a satisfied customer. The relationships of the stakeholders within the supply chain, is contingent upon how well they collaborate to prevent and solve bottlenecks or bumps in the demand and supply. To this end, integration efforts should begin with both the suppliers and the distributors. Integration efforts regarding both the suppliers and the distributors allow for greater control and flow of information and communication across the board by the respective companies. In, Operations Management, 4th edition, the text allows for three types of integration that a company may employ: vertical, backward and forward. When a company utilizes vertical integration, they determine “how much of the supply chain is owned or operated by the manufacturer” (Reid and sanders, 2010, p. 120). Backward and forward integration determine the extent of a company’s control over the acquisition of raw goods and distribution channels, respectively. The selection and use of the particular type of integration…...

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