[səˈplaɪ ˈsɪstəm]
Definition: is a production system using the volume of inventory that is focused on the supply of raw materials and components from suppliers. The "just-in-time" supply system is a philosophy and at the same time technical techniques. The system is based on the fact that no material should enter the link of the logistic system, until there is an acute need for these materials in this link. For example, it is delivery by the time of installation or directly into the store's sales area. The essence of the system "just in time" as a pulling system is that the demand in any part of the chain is determined by the demand presented at the end of it.
Supply system in a sentence:
- The supply system includes managing the movement of raw materials in the organization, certain aspects of the internal processing of materials into finished products, as well as the movement of finished products from the organization to the final consumer.
- The integration of the business process and the supply system includes cooperation between buyers and suppliers, joint product development, common systems and information provided.
- Managing an integrated supply system requires a constant flow of information.
Synonyms and related words: business process management, supply chain management
