Lecture 11_Outline - Supply Chain Integration

Lecture 11_Outline - Supply Chain Integration - Lecture 11...

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Lecture 11 - Outline 1 Lecture 11: Supply Chain Integration (Textbook: Chapter 10) Objectives Supply Chain Dynamics New Service or Product Development Process Supplier Relationship Process The Order Fulfillment Process The Customer Relationship Process Levers for Improved Supply Chain Performance Supply Chains and the Environment Supply Chain Dynamics Supply Chain Integration z The effective coordination of supply chain processes through the seamless flow of information up and down the supply chain z A river that flows from raw material suppliers to consumers z Upstream z Downstream z Mitigating the effects of supply chain disruptions z Bullwhip effect ± Upstream members must react to the demand ± Slightest change in customer demand can ripple through the entire chain z External causes z Internal causes
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Lecture 11 - Outline 2 z Integrated supply chains ± High degree of functional and organizational integration minimizes disruptions ± Integration must include linkages between the firm, its suppliers, and its customers ± SCOR model ² Plan ² Source ² Make ² Deliver ² Return New Service or Product Development Supplier Relationship Process z Sourcing ± Supplier selection ² Material costs z Freight costs z Inventory costs
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Lecture 11 - Outline 3 z Cycle inventory = Q /2 z Pipeline inventory = dL z Annual inventory costs = ( Q /2 + dL ) H z Administrative costs z The total annual cost for a supplier is the sum of these costs: z Total Annual Cost = pD + Freight costs + ( Q /2 + dL ) H + Administrative costs z Other supplier selection criteria
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Lecture 11_Outline - Supply Chain Integration - Lecture 11...

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