PRODUCTION AND OPERATIONS MANAGEMENT Ch. 12: Supply -Chain Management SUMMARY POM - J. Galván

BASIC POINTS Distribution Negotiation strategies Materials management HOW CAN WE MANAGE SUPPLIES AND END PRODUCTS? Meaning of supply chain management Elements: Purchasing Production control Distribution Purchasing function. Definition and strategies Make buy Centralize Cooperate - Compete Few suppliers - Many suppliers Keiretsu network Vertical integration Virtual company Distribution Inventory measures and SC performance SC dynamics Negotiation strategies cost-based price model market-based price model competitive bidding Materials management

QUESTIONS (I) Under what conditions might a firm decide to organize its procurement function as a materials management function? As a supply management function? As a source management function? What can the procurement function do to implement just-in-time techniques with suppliers? What information does purchasing receive from other functional areas of the firm? How does a traditional adversarial relationship with suppliers change when a firm makes a decision to move to Just-in-time deliveries? What reservations do suppliers have about JIT purchasing? Discuss on the potential strategies of the purchasing function in relation with suppliers

QUESTIONS (II) Discuss the objectives of purchasing management and its role in materials management. How does it help in reducing the inventory costs? Getting products to customers, obtaining and managing raw materials, and packaging finished products are all activities of procurement. Logistics production. materials management.

What if ASSIGNMENT: You manage a factory in Madrid producing wooden tables Supplied with wood by local producers Distribution of final product throughout Europe Distribution points: One warehouse per country, 10 in Spain How would you organize the supply chain?

New Supplies!! POM - J. Galván

SUPPLY METHODS POM - J. Galván