Operations Management
Test #4
Supply Chain Management
– the process of linking together the consumer, retailer,
distributor (wholesaler), manufacturer, and commodity producer to synchronize the flow
of materials, services, and information.
•
The Retailer link
– (satisfying the consumer’s needs) Includes customer arrival,
product selection by the customer, sale to the customer, purchase and receipt of
goods from wholesaler.
•
The Distributor Link
– ( replenishing retailer inventory) Includes managing
warehouse inventory Levels, ordering replacement inventory, and material
shipping and receiving.
•
The manufacturing link
– (replenishing distributor inventory) Includes demand
ordering from the distributor, aggregate planning, material ordering, receiving raw
material, manufacturing and shipping to the distributor.
•
The commodity link
– (ensure that raw materials are available for manufacturing
according to the operational plan) Similar to the manufacturing link but involves
processing commodities such as oil, copper etc.
Inventory
– the stock or storage of any item or resource used in an organization
•
Raw material –
Purchased items used directly in transformation process
•
Work in Process –
Raw material that has added value but not suitable for sale
•
Finished goods –
products that are ready for sale
•
Supplies –
(MRO) maintenance, repair, and ordering supplies
Purposes:
•
To meet variation in product demand
•
To allow flexibility in scheduling production
•
To take advantage of economic purchase order size
•
To provide a safeguard for variation in raw material delivery time
MATERIAL PLANNING PROCESS:
Efficient Supply Chain
– coordinate the flow of services and materials, so as to
minimize inventories and maximize cost efficiency of the services providers and
manufacturers in the chain.
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- Fall '09
- CAMP
- Management, Supply Chain Management, Supply And Demand, Supply chain management terms, Production and manufacturing
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