Date post: | 21-Jan-2016 |
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Agenda
Reinforcing the Human Elements In
Downstream Supply Chain in TOC way
By: Kuldeep Singh, Dr.Sheelan Mishra
A-B1:Disaster becomes more damaging if the needed material/service is not delivered within tolerance timeA-B2:we don’t have control over timing and quantum of disaster A-B3:Demand forecasts do often fail A-B4:Substandard infrastructure in underdeveloped regions.
B-D1: Shortages means failures of relief operations. B-D2: Donors need higher ROI of the humanitarian aid.B-D3: Life lost is lost forever customers B-D4:Having too little inventory guarantees a bad offering to clients.
D
D’
A
C
B
A-C1:Cost of Carrying InventoryA-C2:Limited CashA-C3:Having too much inventory (almost) guarantees a bad offering to clients.
C-D’1:Limited capital available from donorsC-D’2:Donors need higher ROI of the humanitarian aid
D-D’1:Frequent stockouts and excess stock situations become common problems.
D-D’2:Poor performance of supply chain puts pressure on supply chain members
Maintain high Inventory (Higher Cost)
Maintain lower inventory (Control Cost)
Supply less material than what is needed
To Meet disaster Demand properly
Supply all material what is needed
Strategy: The supply chain holds, most of the inventory warehouse(s), which are appropriate to ensure availability
Strategy & tactic tree (SnT)
4:1:1Arranging for
W/H s
4:1:2Building
Initial Inventories
4:1:3Replenishing
4:1:4Aligning Suppliers
3:1 Ensure 100%
Availability
Build
4:1:5Keeping Correct
Inventory Levels
5.15.1Buffer
Management
5.13.1Rationing
5.13.2 Dealing with
excess inventory
•“Principal of Aggregation”
•Determine buffers inventory levels(Norms)
Replenishment level
0 units
ConsumptionReceipt
Conclusion
TOC helps in ensuring availability of the right products, at the right time, at right location.
TOC helps in taking away pressure from supply chain members and their performance gets improved in the absence of emotional disturbances and undesirable negative cognitive & affective responses.
Eventually, It brings the well-deserved respect and dignity for them(humanitarian approach).