Supply Chain Management Chapter 11 pp June 28, 2012
The Transformation Process – Systems Theory Inputs Land Labor Capital Information Outputs Goods Services Transformation/ Conversion Process Control Feedback Value-Added Feedback = measurements taken at various points in the transformation process Control = The comparison of feedback against previously established standards to determine if corrective action is needed.
Supply Chains Definition (again) More succinct – Source – Make – Deliver
Supply Chain Processes Production (make) Distribution (deliver) Procurement (source)
Supply Chain for Service Providers More difficult than manufacturing Does not focus on the flow of physical goods Focuses on human resources and support services More compact and less extended
7 Supply Chains, Uncertainty, Inventory Profile of Inventory Level Over Time Quantity on hand Q Receive order Place order Receive order Place order Receive order Lead time Reorder point Demand rate Time Constant Demand
Bullwhip effect
Supply Chain Management (SCM) Definition Keys – information – communication – cooperation – trust Benefits
Information Technology and SCM E-business EDI Bar coding/POS RFID
Radio Frequency Identification
Information Technology and SCM E-business EDI Bar coding/POS Internet – IBM (example only) – Reverse auctions
Lean Supply Chains and SCM Lean suppliers Lean procurement Lean manufacturing Lean warehousing Lean transportation Lean customers
Lean Supply Chains and SCM Benefits – Speed and responsiveness – Reduced inventories – Reduced costs – Improved customer satisfaction – Competitive weapon
Global Supply Chains iPhone See earlier discussion – Natural disasters Duties and tariffs