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Supply Chain Reference Paper

In: Business and Management

Submitted By reviola
Words 1361
Pages 6
SC – all the parties involved directly or indirectly in fulfilling a customer request. Includes manufactures, suppliers, transporters, warehouses, retailers and customers. Supplier-manuf.-dist.-retailer-customer. Objective of a SC is to maximize the overall value generated (profitability). SC=customer value -SC cost
SC Decision phases: 1 - SC Strategy (design)– how to structure the supply chain over the next several years. EX: in-house or outsourcing, location and capacities of production and warehouses, products to be manufactured or sored, modes of transportation and type of info system to be utilized. 2 – SC Planning – time frame is a quarter to a year. The goal here is to maximize SC surplus that can be generated over the panning horizon given the constrains established during the strategic phase. Includes decision about which MKT will be supplied from each location, subcontracting g of manufacturing, inventory policies time and size of marketing and price promotions. 3 – SC Operation – time horizon is weekly or daily. Decisions regarding individual customer orders. SC config. here is fixed and planning policies are already defined. The goal is to handle incoming customer orders in the best way. Allocation of inventory or production to individual orders, set dates when an order is to be filled, generate pick lists at a warehouse, allocate an order to a shipping mode and shipment, set delivery schedule of trucks and place replenishment orders. Less uncertainty about demand info. (short term).
Process views of a SC: 1 - Cycle view – processes are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain. Procurement cycle (suppliers to manuf.) – Manufacturing cycle (manufacturer to dist.), replenishment cycle (distributor to retailer) – Customer order cycle (retailer to customer). Each of these cycles...

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