esi 6323 hw 1 - _ ASHWIN PRASAD PRABHAKARAN UF ID :...

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_____________________________________________________________ ASHWIN PRASAD PRABHAKARAN UF ID : 19951891 Major Course : Models of Supply Chain Management (ESI 6323) Assignment No :1 Due Date : 09/04/2009 _____________________________________________________________________________________ 1.Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and different flows involved. The different stages involved in this supply chain are: a) Customer b) Convenience Store c) Distributor d) Manufacturer e) Suppliers There are four different cycles involved with this type of supply chain. a) Customer Order Cycle: This cycle acts as the interface between the customer and the convenience store. The entire supply chain process starts with the customer’s intent to buy the product( in this case the soda). The customer goes to the convenience store, picks up a can of soda from one of the aisles and brings it to the counter to check it out. At that instant the customer is placing an order with the cashier for the soda. The cashier takes cash from the customer and hands over the soda to him. As this entire process is executed in response to the customer order, this is called a pull cycle. b) Replenishment Cycle: This cycle is at the interface between the convenience store and the distributor. Here the convenience store places an order with the distributor when their stock is running low for a fresh stock of soda cans to store as inventory with a hope that new customers will come to the store to buy more cans of soda. The load is then transported from the distributor’s warehouse to the store. In this case the convenience store places the order with the distributor in anticipation of customer order, so this is a push cycle. c) Manufacturing Cycle: This occurs between the distributor and the manufacturer. When the distributor’s stock runs low they place an order with the manufacturer for new stock. This is also done in anticipation that the convenience store will have more orders. So this is also a push system. In some cases the distributor and the manufacturer is the same party. It is the manufacturer that makes the final product (i.e, a can of soda). The final product is transported from the manufacturing capacity to the different warehouses of the distributors. d) Procurement Cycle:
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This note was uploaded on 09/21/2009 for the course ISE ESI taught by Professor Guan during the Fall '09 term at University of Florida.

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esi 6323 hw 1 - _ ASHWIN PRASAD PRABHAKARAN UF ID :...

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