Literature Review: Raw Material Management In Supply Chain Management

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3.0. Literature Review Raw Material Management in Supply Chain Management The raw material management in the supply chain management involves a systematic process that reveals the flow analysis for the availability of the raw resources (Bowersox, 2013). The flow analysis for the availability of the raw materials indicates the important drivers of both scarcity as well availability raw materials in terms of rates. The flow analysis shows the steps involved in developing a network of raw materials flows that are explained by the consumption rate determined by the demand for the function that make use of raw materials, availability of the substitutes as well as rate of recycling (Chopra and Meindl, 2013). The figure below showing the metric of…show more content…
Furthermore, the inventory management procedure are considered to be more difficult due to the presence of several variables. As mentioned by Drake (2012), the fluid environment of the inventory management comprises of the factors such as the inflation rates at definite time intervals, low availability of the traditional raw materials and new technological advancements that lead to developments in the substitutes among many other factors (, 2015). Measures of intuitional inefficiency in procurement of raw materials As rightly put forward by Golini ska (2014), the construction of metric reveals the scarcity of resources from two different dimensions, namely, the intuitional inefficiency and physical constraints. The institutional Inefficiency is characterized by the failure of the markets, corporations as well as governments that can lead to direct circumstances of unavailability of raw materials (Sarkis, 2012). The important metrics for measurement of institutional inefficiency are the recycling rate that assumes the dependence on the recycled raw materials increases the effectiveness and confidence in the supply (Harland et al. 2013). In addition to this, the other metrics of institutional inefficiency include the old scrap availability, market price, structure…show more content…
As indicated by Jacobs and Chase (2013), the Malthusian metric is an extension of the Malthus that ee6rmines the scarcity of raw materials and balances the concept of the total amount of the raw materials that can be made available and the rate of consumption of the raw materials. The static elements of the metric are based on the static index of depletion on the foundation of the reserves and the dynamic elements that comprise of the exponential index of depletion on the foundation of available raw materials (Morana,

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