Beruflich Dokumente
Kultur Dokumente
Chapter 1
Learning Objectives
Describe the Cycle and push /pull views of a supply chain. Classify the supply chain macro process in a firm. Identify the three key supply chain decision phases and explain the significance of each one. Discuss the goal of a supply chain and explain the impact of supply chain decision on the success of a firm.
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Logistics
Materials Management Manufacturing and supply service Physical Distribution Management Customer Service
Out bound Work in progress Finished goods In bound Materials flow Production
Finished goods
Transit depot
Intermediary
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Transportation
Warehousing
Transportation
Customers
Factory
Information flows
Transportation
Physical supply (Materials management) Sources of supply Plants/ operations Transportation Inventory maintenance Order processing Acquisition Protective packaging Warehousing Materials handling Information maintenance
Physical distribution
Customers Transportation Inventory maintenance Order processing Product scheduling Protective packaging Warehousing Materials handling Information maintenance
SCM
Logistics
Not only seeks to create single plan for flow of goods and information through business, but also aims to achieve linkages and co-ordination between process of other entities in the chain, like suppliers, customers an so forth. Defined as management of downstream and upstream relationships to ensure superior customer satisfaction to the organization.
Seeks to create a single plan for flow of product and information through business. But it is planning oriented. It is defined as process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw material, in process inventory, finished goods and related information from point of origin to the point of consumption to fulfill customer requirement.
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Lower cost More sales Prompt delivery Increased goodwill Improved customer confidence Competitive edge & supply chain profitability
SCM Entails:
Management of flow of goods from supplier to final user; System-wide co-ordination of product and information flows; and Development of relationships and information of all activities that provide customer value through distribution channel.
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a) Replenishment cycle
Occurs at the retailer/distributors interface and includes all processes involved in replenishing retailer inventory.
c) Manufacturing cycle
Occurs at the distributors/manufacturer interface and includes all processes involved in replenishing distributor inventory.
d) Procurement cycle
Occurs at the manufacturer/supplier interface and includes all processes to ensure that materials are available for manufacturing 12 to occur according to schedule.
With pull processes, execution is initiated in response to the customer order. Also referred to as reactive process because they react to customers demand. With push processes, execution is initiated in anticipation of the customer order. Also referred to as speculation processes because they respond to speculated( or forecasted) rather than actual demand.
Fig 1.11
Customer relationship management (CRM) All processes that focus on the interface between the firm and its Customers. Internal supply chain management (ISCM) All processes that are internal to the firm. Supplier relationship management (SRM) All processes that focus on the interface between the firm and its Suppliers.
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a. a.
Demand Characteristics 1.Population(spread fixed costs as large market) 2.Income(more dis.income, more demand) 3.Demand variation(more demand, more PD.) Product characteristics 1.Value of the product(high value, high inventory and trans.cost) 2.Seasonality of the product(high seasonality, high trans.cost) 3.Product line (related vs. unrelated) Dynamic environment
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Total cost perspective Understanding of relevant trade-offs The notion of zero sub-optimization Total system perspective
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Total cost perspective TDC= Transport cost + Facilities cost + Communication cost + Inventory cost + Protective packaging cost + Distribution management cost. Understanding of relevant trade-offs Intra-activity trade-off Inter-activity trade-off Inter-functional trade-off Inter-organizational trade-off 15
Relevant trade-offs
Intra-activity trade-off Decision to use ones own trucks or of a transportation company is an intra-activity trade-off. Decisions between choosing public and private warehousing can be a good example of this trade-off. Inter-activity trade off Use of air freight might increase the transportation cost but would help reduce the inventory and warehousing cost. Af=TC IC or WC Xerox- emergency shipment Inter-functional trade-off Packaging of a product is used for protecting the product and transporting and promoting the product. Packaging= Protecting + Transporting + Promoting A classic example is Pringles Chips. Here the company changed the packaging structure from conventional vacuum packs to temper-proof packs, to increase customer satisfaction and decrease damage during transportation. Inter-organizational trade-off Manufacturer and other organization involved in the creation of place, possession and time utilities for the manufacturer, i.e. intermediaries, transport contractors, shipping and warehouse agents. Thus, management should ensure co-ordination to all the external organizations and capitalize on trade-off opportunities.
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M+P = 3000---(4)
Pineapple
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Taff - 97
P=2000---(2)
M = 2500---(1)
50 $7
50 $6
y
50 $5
x Taff - 98
Possible PD programs and restrictions
Pineapple
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