After completing this chapter, you should be able to:

1. Explain what a supply chain is.
2. Explain the need to manage a supple chain and the potential benefits of doing so.
3. Explain the increasing importance of outsourcing.
4. State the objective of supply chain management.
5. List the elements of supply chain management.
6. Identify the strategic, tactical, and operations issues in supply chain management.
7. Describe the bullwhip effect and the reasons why it occurs.
8. Explain the value of strategic partnering.
9. Discuss the critical importance of information exchange across a supply chain.
10. Outline the key steps, and potential challenges, in creating an effective supply chain.
11. Explain the importance of the purchasing function in business organizations.
12. Describe the responsibilities of purchasing.
13. Explain the term <i>value analysis</i>.
14. Identify several guidelines for ethical behavior in purchasing.