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

2. 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

3. 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

4. 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.

5. 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?

6. New Supplies!!
POM - J. Galván

7. SUPPLY METHODS
POM - J. Galván