Access over 20 million homework & study documents

reasons for formulating and implementing an operations and supply chain strategy

Content type
User Generated
Type
Study Guide
Rating
Showing Page:
1/8
SUPPLY CHAIN MANAGEMENT
Objective
Maximize the overall value generated is the difference between what the
final product is worth to the customer and the effort the supply chains
expends in filling the request of the customer
Supply chain profitability is the difference between the revenue generated
from the customer and the overall cost across the supply chain
It is the total profit to be shared across all supply chain stages
Supply chain success is measured in terms of supply chain profitability and
not in terms of the profits at an individual stage
Revenue is from customer positive cash flow
All other cash flows are simply fund exchanges that occur within the supply
chain given that different stages have different owners
All flows of information, product or funds generates costs within the supply
chain
Supply chain management involves the management of flows between and
among stages in a supply chain to maximize total supply chain profitability
Decision Phases
Three categories - Depending on the frequency of each decision and the time
frame over which a decision has an impact, Supply chain strategy or design
Supply chain planning Supply chain operation
Supply chain strategy
Decides how to structure the supply chain over the next several years-
chain configuration,- resource allocated and-
process at each stage should perform
Decisions include- location and capacities of production and warehousing
facilities,- the products to be manufactured or stored at various locations,- the
method of transportation to be made available along different shipping legs,
and- the type of information system to be utilised
Supply chain planning
Under the given configuration decisions are made which has impact on a time
frame of quarter to a year

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/8
Starts with a forecast the coming year or a comparable time frame.
Planning decisions include which market will be supplied from which
locations, the subcontracting for manufacturing, the inventory policies to
be followed, and the timing and size of marketing promotions
Companies in the planning phase try to incorporate any flexibility built into
the supply chain in the design phase and exploit it to optimise performance
Companies define a set of operating policies that govern short-term
operations
Supply chain operation
Decisions are taken regarding individual customer order and the time frame
is week or days
Configuration is fixed and policies are defined
Objective is to handle incoming customer orders in the best possible manner
Decisions related with allocation of inventory or production to individual
orders, set a date that an order is to be filled, generate pick lists at a
warehouse, allocate an order to a particular shipping mode and shipment,
set delivery schedules of trucks, and
place replenishment order
Exploit the reduction in uncertainty and optimize performance
Process View of Supply Chain
A supply chain is a sequence of processes and flows that take place within
and between different stages and combine to fill a customer need for
a product
Two ways to view the processes performed in a supply chain Cycles view and
Push/pull view
Cycle view
Defines the processes involved and the owners of each process
Process in a supply chain are divided into a series of cycles

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/8

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 8 pages?
Access Now
Unformatted Attachment Preview
  SUPPLY CHAIN MANAGEMENT Objective •Maximize the overall value generated – is the difference between what the final product is worth to the customer and the effort the supply chains expends in filling the request of the customer •Supply chain profitability is the difference between the revenue generated from the customer and the overall cost across the supply chain •It is the total profit to be shared across all supply chain stages •Supply chain success is measured in terms of supply chain profitability and not in terms of the profits at an individual stage •Revenue is from customer – positive cash flow •All other cash flows are simply fund exchanges that occur within the supply chain given that different stages have different owners •All flows of information, product or funds generates costs within the supply chain •Supply chain management involves the management of flows between and among stages in a supply chain to maximize total supply chain profitability Decision Phases Three categories - Depending on the frequency of each decision and the time frame over which a decision has an impact, Supply chain strategy or design Supply chain planning Supply chain operation Supply chain strategy • Decides how to structure the supply chain over the next several years- chain configuration,- resource allocated and- process at each stage should perform • Decisions include- location and capacities of production and warehousing facilities ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4