Developing Model for Supply Chain Management - the Case of Croatia

Abstract

This paper describes a model of supply chain management (SCM). It explains overall supply chain issues, strategic importance of SCM, supply chain strategies and an example of mathematical formulation. A supply chain is a global network of organizations that cooperate to improve the flows of material and information between suppliers and customers at the lowest cost and the highest speed. The objective of a supply chain is customer satisfaction. At the strategic level, a supply chain can be considered as being composed of five activities: buy, make, move, store and sell. Each activity is a module. The set of modules, along with its links, constitutes a model of the supply chain. Our paper presents some insights into the supply chain strategies of companies in Croatia. The major goal of this paper is to show a model for supply chain management in mathematical terms, with an example of mathematical formulation.