...Stains | 6,000 | | Joiners | 900 | Work in Process | Frames | 6,000 | | Drawers | 4,000 | | Panels | 30,000 | | Chests | 13,200 | | Tables | 8,100 | Finished Goods | Chests | 150,000 | | Coffee Tables | 70,000 | Total | | 363,800 | Inventory turns = 3,700,000/363,800 = 10.2 Days of supply ------------------------------------------------- 363,800 (3,700,000)/(365) = 35.9 10-6 Delph Manufacturing Company Supplier 1 Raw Materials | $ 275,000 | Work in Process | 62,000 | Finished Goods | 33,000 | Total | 370,000 | Inventory turns = 8,360,000/370,000 = 22.6 Weeks of supply ------------------------------------------------- 370,000 (8,360,000)/(52) = 2.3 weeks Supplier 2 Raw Materials | $ 870,000 | Work in Process | 550,000 | Finished Goods | 180,000 | Total | 1,600,000 | Inventory turns = 14,800,000/1,600,000 = 9.3 Weeks of supply ------------------------------------------------- 1,600,000 (14,800,000)/(52) = 5.6 weeks Supplier 1 has the best supply chain performance according to inventory turns and weeks of supply. The company might also consider different suppliers SCORcards and/or metrics in comparison with one another. 11-14 “For some manufacturing companies, transportation costs can be as much as 20% of total production costs and run as high as 6% of revenue. For some retail companies primarily involved in the distribution of goods, like L.L. Bean...
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...PROBLEM 1: Old City Photographics a) To determine if the process is supply or demand constrained, we need to compute the implied utilization of each operation. Implied utilization is: (100% x 13 jobs/hr x 2min/job) / (60min/hr) = 0.43 for “Process Film” ((37%+19%) x 13 jobs/hr x 5min/job) / (60min/hr) = 0.61 for “Scan Film” ((44%+37%) x 13 jobs/hr x 4min/job) / (60min/hr) = 0.70 for “Take 6x4 Prints” (19% x 13 jobs/hr x 10min/job) / (60min/hr) = 0.41 for “Make Contact Print” If the mix of jobs doesn’t change, we can affirm that this process is demand constrained since the implied utilization in each step is less than 1. b) The bottleneck is the resource that limits the capacity of the overall process; improving the bottleneck capacity improves the overall system capacity. So, to determine the maximum number of jobs, we need to identify the maximum number of jobs that can be handled by the bottleneck. From the calculations above, we know that “Make 6x4 prints” will become the bottleneck once the process is capacity-constrained. The answer to our question will be given by the solution X to the equation considering the utilization of the bottleneck being 100%. ((44%+37%) x X jobs/hr x 4min/job) / (60min/hr) = 1 Re-arranging the equation yields X = (60min/hr) / (81% x 4min/job) = 18.5 jobs/hr. Fixing the relative proportions of job types, the largest number of jobs per hour that OCP can handle is 18 jobs. PROBLEM 2:...
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...logistics and supply chain management cases Given by Yang Cheng Assistant Professor, PhD chengyangxy@gmail.com Purposes • This talk is o To outline a framework for analysing supply chain situations o This is not a prescriptive approach that can be applied without thought to all situations, rather it provides a series of checklists of factors to consider • Cases o Some deal with the full scope of an organisation’s supply chain from raw material supplies through to delivery of a finished product to the end user o Others deal with one part of the supply chain such as retailing or manufacturing o Advisable to set the specific problem in the context of the overall supply chain system Defining logistics and supply chain management The process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from pointof-origin to point of final consumption for the purpose of conforming to customer requirements ---US Council of Logistics Management in 1986 Key features of logistics • It is concerned with movement and storage of materials • It is concerned with managing the information flows that underpin the flow of materials • Its scope ranges across the whole supply chain from point of origin of raw materials to final consumption of finished products • It requires a single logic to plan and organise this flow of materials throughout the supply chain • It has two...
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...Part E 41 (2005) 531–550 www.elsevier.com/locate/tre Global supply chain design: A literature review and critique Mary J. Meixell a a,* , Vidyaranya B. Gargeya b,1 School of Management, Enterprise Hall, MSN 5F4, George Mason University, Fairfax, VA 22030-4444, United States b Information Systems and Operations Management Department, 479, Bryan Building, The University of North Carolina at Greensboro, Greensboro, NC 27402, United States Abstract In this paper, we review decision support models for the design of global supply chains, and assess the fit between the research literature in this area and the practical issues of global supply chain design. The classification scheme for this review is based on ongoing and emerging issues in global supply chain management and includes review dimensions for (1) decisions addressed in the model, (2) performance metrics, (3) the degree to which the model supports integrated decision processes, and (4) globalization considerations. We conclude that although most models resolve a difficult feature associated with globalization, few models address the practical global supply chain design problem in its entirety. We close the paper with recommendations for future research in global supply chain modeling that is both forward-looking and practically oriented. Ó 2005 Elsevier Ltd. All rights reserved. Keywords: Supply chain design; Globalization; Outsourcing; Supply chain integration; International sourcing 1. Introduction The last...
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...Supply Chain Management Concerns BUS630/Managerial Accounting 8/22/2011 Supply Chain Management Concerns In the modern business world with an increase in technology and information-based consumers, it is no wonder why there are many issues that deal directly with supply chain management. The authors of Managerial Accounting for Managers define supply chain management as, “A management approach that coordinates business processes across companies to better serve end consumers,” (Noreen, Brewer and Garrison, 2011, p. 25). More and more consumers are increasingly trending toward a mass of buyers that crave instant gratification, whether it through technology, delivery or service. Common issues in supply chain management involve stock availability, inventory purchasing and order to delivery timeframe. Other concerns focus on the next generation of business, which involve cost effective and green supply chain, outsourcing, new technology, consumer behavior and most importantly emerging economies. With different views and theories on supply chain management it has become an increasingly important role for businesses in order to deal with these major problems that have arisen in the past few decades. Supply Chain Management Jobs Along with all of these progressively escalating concerns comes the increase for demand in the supply chain management career field. In a recent survey conducted by Supply Management, the information found backed the...
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...SUPPLY CHAIN MANAGEMENT DEFINING SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The following are five basic components of SCM. 1. Plan—This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service. 2. Source— Companies must choose suppliers to deliver the goods and services they need to create their product. Therefore, supply chain managers must develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. 3. Make—This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery. This is the most metric-intensive portion of the supply chain where companies are able to measure quality levels, production output and worker productivity. 4. Deliver—This is the part that many SCM insiders refer to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments. 5. Return—This can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and...
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...Supply Chain Management & E-Commerce Technology By Nachiappan Annamalai P.No: 2843-5431 Dept. of Industrial Engineering State University of New York at Buffalo [pic] Submitted in partial fulfillment of the requirement of CSE 712, "Seminar on E-Commerce," Spring Semester 2000 Instructor: Dr. Aidong Zhang, State University of New York at Buffalo Abstract: Technology improves day by day. What is the latest Technological trend today will eventually be an outdated one tomorrow. Man, ever since evolution has found new things and transformed himself from the Stone Age to an Age called the "Information Age". Now we live in a world where Information in the right sense at the right time and right place is what determines the economic success of nations. This Report presents a Comprehensive review of the fundamentals of Supply Chain Management and the various issues related to it. The Report also explains a few complex problems each entity in the Supply Chain faces and about the hardships that arise out of it. Finally the ways and means to tackle these issues are dealt with. It is at this stage that we find that We could solve all these complex issues through the latest cutting edge information technology tool called e-commerce. So the concluding part of the report presents how E-Commerce Technology can be used to tackle the complex problems in the Modern day Supply Chain. It provides examples of how these concepts that have been applied in various...
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...A systems perspective on supply chain measurements Stefan Holmberg The Authors | Stefan Holmberg, Division of Logistics, Lund University, Sweden Abstract | Both practitioners and research scientists have noted a number of problems regarding measurement activities during the past decade. The problems reported suggest that measurement activities are fragmented both within and across organizations. Expands on a systems perspective on supply chain measurements and describes how problems can be communicated, understood and managed by developing methods and tools for describing interrelationships within supply chains. Empirical evidence from a case study of a Swedish home furnishing business supply chain provides data suggesting that firms within a supply chain cannot simply be categorized as either having adopted systems thinking or not. Rather, both structured models indicating a high degree of systems thinking, and problems showing fragmentation, are present. A performance model, which is used to reflect the systemic structure of an underlying supply chain and a potential integrator, is introduced and suggested as the focus of future research initiatives within supply chain measurements. Article type: case study. Keywords: Supply chain, Measurement, Systems integration, Performance measurement. Content Indicators: Research Implications** Practice Implications** Originality** Readability** International Journal of Physical Distribution & Logistics Management Volume...
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...Link¨ping Studies in Science and Technology. Dissertations o No. 1105 Supply chain optimization in the forest industry Helene Gunnarsson Division of Optimization Department of Mathematics Link¨pings universitet, SE-581 83 Link¨ping, Sweden o o ISBN 978-91-85831-85-2 ISSN 0345-7524 Copyright c 2007 Helene Gunnarsson unless otherwise noted ISBN 978-91-85831-85-2 ISSN 0345-7524 Printed by LiU-Tryck, Link¨ping, Sweden 2007 o Acknowledgements First of all, I would like to give special thanks to my supervisor Mikael R¨nnqvist o for giving support, inspiration and guidance. Your positive attitude and enthusiasm have meant much to me. I would also like to thank my co-supervisor Jan Lundgren for your support, encouragement and guidance in writing. Thanks to Dick Carlsson at S¨dra Cell AB for very good cooperation and friendo ship. I am grateful to Torbj¨rn Larsson, for always taken time for discussions cono cerning both research and teaching. I appreciate my friendship with Maud G¨the-Lundgren. o Thanks to Mathias Henningsson for good cooperation in teaching and J¨rgen o Blomvall for helping me with computer problems. Thanks to Kaj Holmberg for interesting discussions about decomposition methods. Thanks to Oleg Burdakov and Sven Erlander for encouragement. The group of PhD students has been important for me. Thanks to Maria Daneva, Elina R¨nnberg, Per-˚ke Andersson and Kristian Lundberg for supo A porting me and for all fun discussions. Thanks also to my former colleagues, I miss...
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...Building a resilient supply chain Introduction Global supply chains and transport networks create the core of the global economy, fuelling trade, growth and consumption. Due to the never-ending push of management boards to improve efficiency and increase profit, supply chains are becoming more and more complex. Getting leaner, just-in-time inventory, outsourcing and other trends have introduced many business benefits, however we must not forget about the other side of the problem; new kinds of supply chain risk. Except from the internal company’s trends, other macro factors are influencing the complexity of a supply chain. Forces such as globalization, e/m-commerce and global connectivity are fostering the process of higher complexity within the chains and are amplifying the impact of problems & risks, which may arise. The trends and are not only influencing the company side though. Customer expectations and PLCs continue to develop and change in reference to external factors. A constant stream of products (high quality, low cost and environmentally friendly) is expected by the modern times buyers. The internet, social media platforms and the „shrinkage of the distances“ between people, lets the public quickly learn about any weak spots of company; sometimes even before the information reaches the employers. Not only internal trends have contributed to the fragility of the supply chains. External challenges during the last decade such as the fuel crisis, mouth...
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...Six Components of FedEx Corporation Supply Chain Six Components of FedEx Corporation Supply Chain This project paper will describe six components of the FedEx’s supply chain. Also this paper will examine the potential problems related to each of the components and describe and explain the approaches of the organization for solving the problems. Let’s start with the background of the company. FedEx is led by Corporation, that provides strategic direction and financial reporting to the operating companies which compete under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx Office, FedEx Supply Chain Solutions and FedEx Services these are six supply chain of the main FedEx brand. FedEx started in 1971, when its founder Frederick W. Smith had idea for airfreight system that would facilitate quick overnight delivery of documents directly to customers. To make his ideas work, Smith decided to start his own company. In March 1973, FedEx moved its airline operations to Memphis, Tennessee, US. On April 1, 1973, FedEx started full time operations with a network, opened up in 25 cities in the US. This had begun the air/ground express industry. FedEx Express is a cargo airline based in Memphis, Tennessee. In terms of freight tons flown it is the largest in the world and the world's fourth largest in terms of fleet size. It is one of the supply chain segments of FedEx Corporation. It delivers packages and freight to more than 375 destinations in...
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...INTEGRATED SUPPLY CHAIN MANAGEMENT IN THE GOVERNMENT ENVIRONMENT ABSTRACT With the fall of East European Socialist-Bloc and opening up of the Asian markets, the trade barriers began falling during the 1980’s and continued throughout the 1990’s. This development lead to organizations having a supply chain, that criss-crossed the whole globe. The proliferation of trade agreements has thus changed the global business scenarios. The Integrated Supply Chain Management (ISCM) is now not only a problem of integrated logistics (as a process) but also demands that the supply chain management (SCM) must look into the ramifications of these arrangements on the cost of transportation (including tariffs or duties) of products within a trade zone and outside it, besides, developing logistics strategies. The field has thus developed in the last few years for bridging the gap between demand and supply vis-à-vis efficiency and cost trade-offs. The SCM now not only involves the “management of logistic function”, as was done in the past (to achieve internal efficiency of operations) but, includes the management and co-ordination of activities, upstream and downstream linkage(s) in the supply chain. The integrated supply chain management, in particular include : Planning and Managing supply and demand; Warehouse Management; Optimal Inventory control; Transportation and Distribution, Delivery and customer’s delight following the basic principles of supply chain management viz. working together;...
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...INTEGRATED SUPPLY CHAIN MANAGEMENT IN THE GOVERNMENT ENVIRONMENT R.K. Gupta* and Pravin Chandra** ABSTRACT With the fall of East European Socialist-Bloc and opening up of the Asian markets, the trade barriers began falling during the 1980’s and continued throughout the 1990’s. This development lead to organizations having a supply chain, that criss-crossed the whole globe. The proliferation of trade agreements has thus changed the global business scenarios. The Integrated Supply Chain Management (ISCM) is now not only a problem of integrated logistics (as a process) but also demands that the supply chain management (SCM) must look into the ramifications of these arrangements on the cost of transportation (including tariffs or duties) of products within a trade zone and outside it, besides, developing logistics strategies. The field has thus developed in the last few years for bridging the gap between demand and supply vis-à-vis efficiency and cost trade-offs. The SCM now not only involves the “management of logistic function”, as was done in the past (to achieve internal efficiency of operations) but, includes the management and co-ordination of activities, upstream and downstream linkage(s) in the supply chain. The integrated supply chain management, in particular include : Planning and Managing supply and demand; Warehouse Management; Optimal Inventory control; Transportation and Distribution, Delivery and customer’s delight following the basic principles of supply chain management...
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...INTEGRATED SUPPLY CHAIN MANAGEMENT IN THE GOVERNMENT ENVIRONMENT R.K. Gupta* and Pravin Chandra** ABSTRACT With the fall of East European Socialist-Bloc and opening up of the Asian markets, the trade barriers began falling during the 1980’s and continued throughout the 1990’s. This development lead to organizations having a supply chain, that criss-crossed the whole globe. The proliferation of trade agreements has thus changed the global business scenarios. The Integrated Supply Chain Management (ISCM) is now not only a problem of integrated logistics (as a process) but also demands that the supply chain management (SCM) must look into the ramifications of these arrangements on the cost of transportation (including tariffs or duties) of products within a trade zone and outside it, besides, developing logistics strategies. The field has thus developed in the last few years for bridging the gap between demand and supply vis-à-vis efficiency and cost trade-offs. The SCM now not only involves the “management of logistic function”, as was done in the past (to achieve internal efficiency of operations) but, includes the management and co-ordination of activities, upstream and downstream linkage(s) in the supply chain. The integrated supply chain management, in particular include : Planning and Managing supply and demand; Warehouse Management; Optimal Inventory control; Transportation and Distribution, Delivery and customer’s delight following the basic principles of supply chain management...
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...that is composed of manufacturers, supply chain partners, distributors and financiers who try to stay financially independent but work closely with each to ensure each other’s success. In Japanese, the word keiretsu means “group.” In business sense, the word is sometimes used as another word for partnership or alliance. Using this strategy will help your company by assisting in establishing stable, long-term partnerships, which in turn will help them to focus on core business requirements needed to assist with maintaining your products and production in several different aspects. Because the product that is being developed here is an intricate electronic device, there will be several partnerships that we will develop over time such as parts distributors and other components of our products (http://www.investopedia.com /terms/k/keiretsu.asp#axzz2IwCjpAVn). Using this strategy will also help us with the management of our finances through assistance with other departments and entities that specialize with financing. Even though this strategy is meant to sustain stability, this same stability can sometimes become an issue and cause problems with us being the manufacturer by not responding quickly to changes in the economy, culture or technology. Typically companies using this strategy organize around their own trading companies and banks. Each company using the keiretsu strategy is capable of controlling nearly every step of the economic chain in a variety of industrial, resource...
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