Coyle Chapter 11 PowerPoint Slides

Coyle Chapter 11 PowerPoint Slides - Chapter 11...

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Unformatted text preview: Chapter 11 Distribution—Managing Fulfillment Operations Learning Objectives After reading this chapter, you should be able to do the following: Discuss the strategic value-adding role distribution plays in the supply chain. Recognize the tradeoffs between distribution and other supply chain functions. Understand the analytical framework for distribution planning decisions. Evaluate fulfillment strategies and distribution methods. Learning Objectives (cont.) Describe the primary fulfillment processes and support functions in distribution center (DC) operations. Use productivity and quality metrics to analyze fulfillment performance. Describe how information technology supports distribution operations. Discuss materials-handling objectives, principles, and equipment uses. The Role of Distribution in SCM: 1. Balancing supply and demand. Whether seasonal production must service year-round demand (e.g., corn) or year-round production is needed to meet seasonal demand (e.g., holiday wrapping paper), distribution facilities can stockpile inventory to buffer supply and demand. 2. Protecting against uncertainty. Distribution facilities can hold inventory for protection against forecast errors, supply disruptions, and demand spikes. 3. Allowing quantity purchase discounts. Suppliers often provide incentives to purchase product in larger quantities. Distribution facilities can handle the quantities, reducing the purchase cost per unit. 4. Supporting production requirements. If a manufacturing operation can reduce costs via long production runs or if outputs need to age or ripen (e.g., wine, cheese, fruit), the output can be warehoused prior to distribution. 5. Promoting transportation economies. Fully utilizing container capacity and moving product in larger quantities is less expensive per unit than shipping “air” and moving small quantities at a time. Distribution facilities can be used to receive and hold the larger deliveries of inventory for future requirements. Distribution Facility Functionality Four primary functions are: accumulation sortation allocation assortment Tradeoffs Cost of distribution centers and inventory vs. cost of transportation Cost of additional facilities vs. level of customer service Space vs. equipment Equipment vs. people People vs. space Capability Requirements...
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This note was uploaded on 07/28/2011 for the course MRKT 4354 taught by Professor Nancyevans during the Summer '11 term at Virginia Tech.

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Coyle Chapter 11 PowerPoint Slides - Chapter 11...

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