SCM 355 Important Concepts Chapter 16

SCM 355 Important Concepts Chapter 16 - Dispersed supply...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
SCM 355 Important Concepts Chapter 16 (Managing Supply Chain Inventory) Understanding Supply Chain Inventory Types of Inventory Raw Materials and Semi-finished Item Inventory Work-in-Process Inventory Finished Goods Inventory Maintenance, Repair, and Operating Inventory (MRO) Pipeline/In- Transit Inventory Inventory Related Costs Unit Cost Ordering Cost Carrying Cost Quality Cost Inventory Investment-Asset or Liability (exhibit 16.2, 16.3) The Right Reasons for Investing In Inventory Support Production Requirements Support Operational Requirements Support Customer Service Requirements Hedge Against Marketplace Uncertainty Take Advantage of Order Quantity Discounts The Wrong Reasons for Investing in Inventory Poor Quality and Material Yield Unreliable Supplier Delivery Extended Order –Cycle Times Inaccurate or Uncertain Demand Forecasts Specifying Custom Items for Standard Application Extended Material Pipeline Inefficient Manufacturing Processes Creating the Lean Supply Chain Just-in-Time Purchasing JIT Purchasing Barriers
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Dispersed supply base Historical buyer-seller relationships Number of suppliers Supplier quality performance JIT Transportation Reduce the number of carriers Use longer-term contracts Establish electronic linkages Implement a closed-loop system Efficient handle material Chapter 16 Continued JIT Production Equipment setup time reduction Inventory pull system with visible signals Facility layout changes Uniform loading and level scheduling Managing Inventory Investment (Exhibit 16.7 V-Model) Achieve perfect record integrity Improve product forecasting Standardize and simplify product design Leverage companywide purchasing volumes Use suppliers for on-site inventory management Develop supply chain planning systems and support structure Reduce supplier-buyer cycle times Delivering the Perfect Customer Order Material requirements planning system Distribution resource planning system Supply chain inventory planners Automated inventory tracking systems...
View Full Document

Page1 / 2

SCM 355 Important Concepts Chapter 16 - Dispersed supply...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online