Date post: | 19-Feb-2018 |
Category: |
Documents |
Upload: | ashok-sharma |
View: | 233 times |
Download: | 0 times |
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 1/40
Introduction to
Supply ChainManagement
Source: Designing and Managing the SupplyChain,
By D. Simchi-Levi, P. Kaminsky & E. Simchi-Levi
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 2/40
Supply
Sources:plants
vendorsports
RegionalWarehouses:stockingpoints
FieldWarehouses:stocking
points
Customers,demandcenterssinks
Production/purchasecosts
Inventory &arehousingcosts
!ransportationcosts Inventory &
arehousingcosts
!ransportationcosts
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 3/40
S
U
PP
L
I
E
R
S
Component
Manufacturing
Final
Assembly
Distribution &
are!ousing
C
U
S T
O
M
E
R S
P!ysical Supply
Inboun" Logistics
P!ysical Distribution
#utboun" Logistics
THE LOGISTICS SYSTEM
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 4/40
Defnition:
Supply Chain Manaemen! is primarily concerne" #i!h !hee$cien! in!era!ion o% suppliers, %ac!ories, #arehousesan" s!ores so !ha! merchan"ise is pro"uce" an"
"is!riu!e" in !he rih! 'uan!i!ies, !o !he rih! loca!ionsan" a! !he rih! !ime, an" so as !o minimi(e !o!al sys!emcos! su)ec! !o sa!is%yin service re'uiremen!s.
Notice: Everyone is involve"
Sys!ems approach !o re"ucin cos!s *n!era!ion is !he key
Supply ChainManagement
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 5/40
Conicting Objectives
in the Supply Chain+. urchasing
S!ale volume re'uiremen!s
leile "elivery !ime Li!!le varia!ion in mi Lare 'uan!i!ies
/. Manu!acturing
Lon run pro"uc!ion 0ih 'uali!y 0ih pro"uc!ivi!y Lo# pro"uc!ion cos!
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 6/40
Conicting Objectives
in the Supply Chain1. "arehousing Lo# inven!ory
2e"uce" !ranspor!a!ion cos!s 3uick replenishmen! capaili!y
4. Customers Shor! or"er lea" !ime
0ih in s!ock Enormous varie!y o% pro"uc!s Lo# prices
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 7/40
#he Dynamics o! the
Supply Chain
# r " e r S
i $ e
%ime
Source %om Mc 'uffry( Electronic Commerce an" )alue C!ain Management( *++,
Customer
Deman"
Retailer #r"ersRetailer #r"ersDistributor #r"ersDistributor #r"ers
Pro"uction PlanPro"uction Plan
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 8/40
5ha! Manaemen! 6e!s...
# r " e r S
i $ e
%ime
Source %om Mc 'uffry( Electronic Commerce an" )alue C!ain Management( *++,
Customer
Deman"
Pro"uction PlanPro"uction Plan
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 9/40
5ha! Manaemen!5an!s7
) o l u m e s
%ime
Source %om Mc 'uffry( Electronic Commerce an" )alue C!ain Management( *++,
Pro"uction PlanPro"uction PlanCustomer
Deman"
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 10/40
8he Dynamic Supply Chain *ncreasin cus!omer po#er lea"s
!o increase" "eman"s on re!ailers
*ncrease" re!ailer po#er lea"s !o
increase" "eman"s on suppliers
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 11/40
Supply Chain:
8he Mani!u"e *n +99, ;merican companies spen!
<9 illion in supply-rela!e" ac!ivi!ies
=or +>.?@ o% 6ross Domes!ic Pro"uc!A. 8ranspor!a!ion @
*nven!ory 1@
Manaemen! 4@ 8hir" par!y lois!ics services re# in
+99 y +@ !o nearly <4> illion
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 12/40
Dynamic orces o% !he
6loal Supply Chain
GLOBAL
SUPPLY
CHAIN
Resources
Logistics
User Logistics
InformationLogistics
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 13/40
Supply Chain:
8he Mani!u"e *! is es!ima!e" !ha! !he rocery in"us!ry
coul" save <1> illion =+>@ o% opera!in
cos!A y usin eec!ive lois!icss!ra!eies.
; !ypical o o% cereal spen"s more !han !hreemon!hs e!!in %rom %ac!ory !o supermarke!.
; !ypical ne# car spen"s + "ays !ravelin%rom !he %ac!ory !o !he "ealership, al!houhac!ual !ravel !ime is "ays.
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 14/40
Supply Chain: 8he Mani!u"e
Compa' compu!er es!ima!es i! los! <>> million!o <+ illion in sales in +99 ecause i!s lap!opsan" "esk!ops #ere no! availale #hen an"#here cus!omers #ere rea"y !o uy !hem.
*n +991, *BM los! a ma)or %rac!ion o% i!s po!en!ial
sales o% "esk!op compu!ers ecause i! coul" no!purchase enouh chips !ha! con!rol !hecompu!er "isplays.
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 15/40
Supply Chain: 8he Mani!u"e
Boein ;ircra%!, one o% ;mericas lea"in capi!aloo"s pro"ucers, #as %orce" !o announce#ri!e"o#ns o% </.? illion in c!oer +99F.
8he reasonG H2a# ma!erial shor!aes, in!ernalan" supplier par!s shor!aes7I. =5all S!ree! Journal, c!. /1, +99FA
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 16/40
Supply Chain:
8he Po!en!ial
Proc!er & 6amle es!ima!es !ha! i! save" re!ailcus!omers <? million !hrouh lois!ics ains over !hepas! + mon!hs.
H;ccor"in !o P&6, !he essence o% i!s approach lies inmanu%ac!urers an" suppliers #orkin closely !oe!her
7. )oin!ly crea!in usiness plans !o elimina!e !hesource o% #as!e%ul prac!ices across !he en!ire supplychainI. =Journal o% Business S!ra!ey, c!.ov. +99FA
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 17/40
Cos! S!ruc!ure in!he Supply Chain
Margin *-.*
*,.*
/.0
,.*
1.*
+.2
1-.2
Stores
#perating Cost
A"ministration
Logistics
Sales3Purc!ases
Mar4eting
Pro"uction
Cost
AC%UAL %AR'E%
+.,
*5.1
1.,
5.-6.0
,.-
10.,
*00 *00 7 A8erage Retail Price
,+.-
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 18/40
Supply Chain:
8he Po!en!ial
*n !#o years, a!ional Semicon"uc!or re"uce""is!riu!ion cos!s y /.@, "elivery !ime y 4F@ an"increase" sales y 14@ y
- Shu!!in si #arehouses aroun" !he loe.
- ;ir-%reih!in microchips !o cus!omers %rom a ne# cen!rali(e" "is!riu!ion cen!er.
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 19/40
Supply Chain:
8he Po!en!ial *n +> years, 5al-Mar! !rans%orme" i!sel% y
chanin i!s lois!ics sys!em. *! has !he hihes!
sales per s'uare %oo!, inven!ory !urnover an"opera!in pro! o% any "iscoun! re!ailer.
Laura ;shley !urns i!s inven!ory +> !imes ayear, ve !imes %as!er !han !hree years ao.
8his is achieve" y usin- e# *n%orma!ion Sys!em
- Cen!rali(e" 5arehouse
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 20/40
“or a company #i!h annual sales o% <>> million an"a ?>@ cos! o% sales, !he "ierence e!#een ein a!
me"ian in !erms o% supply chain per%ormance an" in!he !op />@ is <44 million o% a""i!ional #orkincapi!al.I
99 PR%M Director Mi4e Ag!a:anian
Supply Chain: 8he Po!en!ial
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 21/40
Supply Chain:
8he Complei!yNational Semiconductors:
roduction:N Pro"uces chips in si "ieren! loca!ions: %our in
!he OS, one in Bri!ain an" one in *sraelN Chips are shippe" !o seven assemly loca!ions in
Sou!heas! ;sia. Distribution
N 8he nal pro"uc! is shippe" !o hun"re"s o%
%acili!ies all over !he #orl"N />,>>> "ieren! rou!esN +/ "ieren! airlines are involve"N 9@ o% !he pro"uc!s are "elivere" #i!hin 4 "aysN @ are "elivere" #i!hin 9> "ays.
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 22/40
Supply Chain: 8he Complei!y
+$ Supply Chain Integration
Conic!in )ec!ives
8he Dynamics o% !he Supply Chain
/. Matching Supply and Demand
1. System %ariations over #ime
4. Status o! &ogistics 'no(ledge
Many prolems are ne#
*ncomple!e un"ers!an"in o% issues
Me!ho"oloy is ra!her narro#
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 23/40
*SSOES:
Decision Classica!ion Strategic lanning:
Decisions !ha! !ypically involve ma)or capi!al
inves!men!s an" have a lon-!erm eec!.+. De!ermina!ion o% !he numer, si(e an" loca!ion o%ne# plan!s, "is!riu!ion cen!ers an" #arehouses
/. ;c'uisi!ion o% ne# pro"uc!ion e'uipmen! an" !he
"esin o% #orkin cen!ers #i!hin each plan!1. Desin o% !ranspor!a!ion %acili!ies,communica!ions e'uipmen!, "a!a processinmeans, e!c.
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 24/40
*SSOES:
Decision Classica!ion #actical lanning:
Eec!ive alloca!ion o% manu%ac!urin an" "is!riu!ion
resources over a perio" o% several mon!hs
+. 5ork-%orce si(e
/. *nven!ory policies
1. Deni!ion o% !he "is!riu!ion channels4. Selec!ion o% !ranspor!a!ion an" !rans-shipmen!al!erna!ives
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 25/40
*SSOES:
Decision Classica!ion Operational Control:
*nclu"es "ay-!o-"ay opera!ional "ecisions
+. 8he assinmen! o% cus!omer or"ers !o
in"ivi"ual machines
/. Dispa!chin, epe"i!in an" processin or"ers
1. Qehicle sche"ulin
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 26/40
*SSOES:
5hy Keep *nven!oryG )ncertainty in customer demands
)ncertainty in the supply Oncer!ain!y in 'uan!i!y an" 'uali!y Oncer!ain!y in "elivery !ime
Oncer!ain!y in cos!s
*conomies o! scale
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 27/40
*SSOES:
Deman" orecas! #he three principles o! all !orecasting
techni+ues:
orecas!in is al#ays #ron
8he loner !he %orecas! hori(on !he #orse !he
%orecas!
;rea!e %orecas!s are more accura!e
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 28/40
*SSOES:*nven!ory con!rol
0o# much inven!ory !o keepG
Can uncer!ain!y e re"uce"G
5ha! si(e shoul" or"ers eG
0o# "oes %orecas!in !ool eec!
inven!ory levelG
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 29/40
*SSOES: 8he Challene o%
*nven!ory Manaemen! Ma!chin supply an" "eman" accura!ely is
a cri!ical challene
HDell Compu!ers pre"ic!s a lossR s!ock plunes. Dellackno#le"e" !ha! !he company #as sharply o in i!s%orecas! o% "eman", resul!in in inven!ory #ri!e"o#nsI.=5SJ, ;uus! +991A
H*BM con!inues !o s!rule #i!h shor!aes in !he 8hink
Pa" lineI. =5SJ, May +994A HLi( Claiorne sai" i!s unepec!e" earnins "ecline is !he
conse'uence o% hiher !han an!icipa!e" ecessinven!oriesI.=5SJ, ;uus! +991A
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 30/40
*SSOES:
Purchasin 5ha! !o Purchase
- *n-house pro"uc!ion Qs. e!ernal suppliers
5here !o purchase
- Domes!ic Qs. in!erna!ional
rom #hom !o purchase
- Cos!
- 2eliaili!y: 'uali!y an" on !ime "elivery
- ;vailaili!y an" eiili!y
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 31/40
*SSOES:
Purchasin
Cen!rali(e" Qs. Decen!rali(e"
umer o% suppliers:Sinle sourcin Qs. Mul!iple sourcin
Supply con!rac!s
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 32/40
*SSOES:
Pro"uc!ion Loca!ion o% manu%ac!urin plan!s
Pro"uc!ion cos!
8aes
*ncen!ives =y overnmen!A
Proimi!y !o marke!s an" ra# ma!erials 8ranspor!a!ion in%ras!ruc!ure
Poli!ical s!aili!y an" cul!ure
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 33/40
*SSOES:
Pro"uc!ion
leiili!y
8he aili!y !o pro"uce "ieren!pro"uc!s simul!aneously an"e$cien!ly
8he aili!y !o pro"uce ne# pro"uc!se$cien!ly
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 34/40
*SSOES:
Pro"uc!ion E$ciency
Lo# cos! Shor! lea" !ime
2eliaili!y
n-!ime "elivery 3uali!y
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 35/40
*SSOES:
Dis!riu!ion 8he s!ruc!ure o% !he "is!riu!ion
ne!#ork
8he "is!riu!ion s!ra!ey
8he Classical S!ra!ey
Cross Dockin
Direc! Shippin
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 36/40
*SSOES:Pro"uc! Desin
5ha! role "oes pro"uc! "esin playin supply chain manaemen!G
5hen is re"esinin pro"uc!s#or!h !he cos!G
Can pro"uc! "esin compensa!e
%or uncer!ain!y in cus!omer"eman"G
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 37/40
*SSOES:*n%orma!ion Sys!ems
8he a"van!aes o% a"vance"in%orma!ion sys!ems
8he challene o% unlimi!e" "a!a 8he roll o% e-commerce
*mpac! o% !he in!erne!
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 38/40
*SSOES:
5ha!s e# inLois!icsG 6loal compe!i!ion
Shor!er pro"uc! li%e cycle
*ncreasin pro"uc! varie!y
e#, lo#-cos! "is!riu!ion channels
More po#er%ul #ell-in%orme"cus!omers
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 39/40
*SSOES:
5ha!s e# inLois!icsG e# communica!ions an"
in%orma!ion !echnoloies PS an"ED* !echnoloy
5ireless !echnoloy
Decision Suppor! Sys!ems *n!era!e" sys!ems
Mul!i-mo"al !ranspor!a!ion
7/23/2019 Chap 1 intro.ppt
http://slidepdf.com/reader/full/chap-1-introppt 40/40
*SSOES:
5ha!s e# inLois!icsG e# concep!s in lois!ics
Push Qs Pull s!ra!eies
Cross "ockin
S!ra!eic alliances
Manu%ac!urin pos!ponemen!
Desin %or Lois!ics