Premium Essay

Supply Chain Mrnrgement

In: Business and Management

Submitted By anna2305
Words 5354
Pages 22
Chapter 1
SCM takes into consideration every facility, its objective is to be efficient and cost effective, it encompasses activities at many levels, and provides competitive advantage.

System approach – system-wide strategy minimizing costs over the entire supply chain

Challenge of SCM: 1. Strategies cannot be determined in isolation. 2. Minimize cost while maintaining system-wide service levels. 3. Uncertainty and risk

Global optimization is complex because facilities are dispersed over a large area, different facilities have different goals, it’s a dynamic system; changes over time due to changing business and customer environment, seasonal fluctuations, competitors, trends, etc.

Sources of uncertainty: lead-time, demand, transportation times, component availability, etc.

Approaches to manage risk: 1. Build redundancy 2. Use info to better sense and respond to disruptions 3. Incorporate flexibility 4. Improve supply chain processes to including risk assessment measures

Building blocks in effective supply chain: strategic partnerships, info sharing, outsourcing, e-business.

Strategic issues – deal with long term goals (number, location, capacity of facilities)
Tactical issues – quarterly/yearly basis (transportation, purchasing, inventory policies)
Operational – day-to-day (truck-loading, scheduling, lead-time quotations)

Supply chain disruptions: * Part shortages * Roll-out problems * Order change by customers * Production problems * Development problems * Quality problems

Dealing with excess inventory: * Write-offs * Customers taking actions * Production curtailment * Markdowns and promotions

Chapter 2
Types of inventory: raw materials, WIP, finished goods.
We need inventory due to unexpected demand, uncertainty of supply, supplier costs, lead times, and...

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