BALLOU10 - 10-1 Purchasing and Supply Scheduling Decisions...

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Unformatted text preview: 10-1 Purchasing and Supply Scheduling Decisions Chapter 10 Press On Nothing in the world can take the place of persistence. Talent will not. Nothing is more common than unsuccessful men with talent. Genius will not. Unrewarded genius is almost a proverb. Education will not. The world is full of educated derelicts. Persistence and determination alone are omnipotent. 10-2 Purchasing in Inventory Strategy PLANNING ORGANIZING CONTROLLING Transport Strategy Transport fundamentals Transport decisions Customer service goals The product Logistics service Ord. proc. & info. sys. Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisions Location Strategy Location decisions The network planning process PLANNING ORGANIZING CONTROLLING Transport Strategy Transport fundamentals Transport decisions Customer service goals The product Logistics service Ord. proc. & info. sys. Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisions Location Strategy Location decisions The network planning process A Typical Scheduling Diagram Forecast Orders Build schedule Inventory Shortages Purchase order releases To vendors Production release Bill of materials The point: Supply is to inventory or to requirements 10-3 10-4 Supply to Requirements Methods of scheduling Just-in-time concept Requirements planning KANBAN Just-in-time A philosophy of scheduling where the entire supply channel is synchronized to respond, in as short a time as possible, to the requirements of operations. 10-5 Supply to Requirements The characteristics are: Close relationship with a few suppliers and transport carriers Information is shared between buyers and suppliers Frequent production/purchase and transport of goods in small quantities Minimum inventory levels Uncertainties are to be eliminated wherever possible throughout the supply channel Why requirements become lumpy for the materials manager Setting the master schedule- through derived demand patterns and bill of materials explosion- forecasting- orders on hand Supply to Requirements (Contd) Requirements planning Definition A formal, mechanical method of scheduling whereby the timing of purchases or supplies is determined by offsetting the requirements in the master production schedule. 10-6 Supply to Requirements (Contd) Time Time Order point Order point Level Level Production order release Order placement ( a ) Field inventory (Finished product in warehouse) ( b ) Factory inventory (Finished product at plant) Why demand becomes lumpy 10-7 10-8 Supply to Requirements (Contd) Time Order point Level Purchase order release ( c ) Component inventory (Supply stocks at plant) 10-9 Supply to Requirements (Contd) The mechanics of lot-for-lot scheduling given...
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BALLOU10 - 10-1 Purchasing and Supply Scheduling Decisions...

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