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Chapter 1
communicate information about expense reimbursement policies to salespeople whose
10
jobs require travel.
To summarize, inputs for Marketing and Sales could include the following:
• Customer data
• Order data
• Sales trend data
• Per-unit cost
• Company travel expense policy

Outputs for Marketing and Sales could include the following:
• Sales strategies
• Product pricing
• Employment needs

Supply Chain Management
Supply Chain Management (SCM) also needs information from the various functional
areas, as shown in Figure 1-5.

Raw materials
availability and Legal requirements
delivery and job information
HR
Orders for raw
materials and Hiring needs and
packaging personnel information
Product
Production availability
plans, materials, SCM data and
and inventory order status

Sales data and Sales forecasts
manufacturing and sales
cost analysis orders
A/F M/S
Source Line: Course Technology/Cengage Learning.

FIGURE 1-5 The Supply Chain Management functional area exchanges data with suppliers and
with the Human Resources, Marketing and Sales, and Accounting and Finance
functional areas

Manufacturing firms often develop production plans of varying length and detail, such as
short-range, medium-range, and long-range plans. Plans could be developed for expanding
manufacturing capacity (based on sales forecasts), hiring new workers, and paying extra
overtime for existing workers.
Production plans are based on information about product sales (actual and projected),
which comes from Marketing and Sales. The purchasing function bases its orders of raw

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