* Supply Chain
(supply network or supply web) – all stages involved, directly or indirectly, in fulfilling a customer request. *Includes manufacturers, suppliers, transporters,
Warehouses, retailers, and customers. *Within company – SC includes all functions involved in customer req – (product development, marketing, operations, distribution, finance,
Customer service/SC – Customer very important part. *Movement of products from suppliers to manf to distrib. *
Supply chg stages
– customers, retailers, distributors, manuf,
suppliers. Obj of SC – max overall value created. *
– diff between final prdct is worth to customer and effort SC expends in flling cust req.*Value is correlated to SC profitability.
Supply Chain Mgmt
– mgt of flows between& among SC stages to max total SC profit.
SC strategy or Design
– decisions about structure of SC & processes each stage will perform.
Decisions Involved include
long term and Expense – must take acct mkt uncertainty. *
– set of policies that ctrl shrt term operations, starts w/ forecast of demand in coming year
./ Planning dec.
which markets will be supplied from which locations? Planned buildup of inventories? Subcontracting, backup locations? Inventory policies? Timing and size of market promotions?
W/ planning must consider demand uncertainty, exchange rates, competition over the time horizon. *
SC Operation –
Time horizon is weekly or daily/ dec regarding indvl custmr
dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery sched, place refill orders/ much less uncertainty (short time horizon)*
Process view of a SC
– Cycle view
– processes in a SC are divided into a series of cycles, each performed at the interfaces between 2 successive SC stages* Push/pull view
processes in a SC are divided into 2 catg depending on if they are executed in response to a customer order (pull) or in anticipation of a customer order (push).*
Cycle view of a SC –
each cycle occurs at the interface between 2 succ stages, customer order cycle
(customer-retailer)/ replenishment cycle
(retailer-distributor)/ manufacturing cycle