lect2 - Chris Caplice ESD.260/15.770/1.260 Logistics...

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Unformatted text preview: Chris Caplice ESD.260/15.770/1.260 Logistics Systems Sept 2006 Supply Chain Fundamentals & Segmentation Analysis Chris Caplice, MIT 2 MIT Center for Transportation & Logistics ESD.260 Supply Chain Management Definitions Supply Chain Management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Prof. Hau Lee - Stanford Supply Chain Forum Call it distribution or logistics or supply chain management. By whatever name it is the sinuous, gritty, and cumbersome process by which companies move material, parts, and products to customers. Fortune (1994) Chris Caplice, MIT 3 MIT Center for Transportation & Logistics ESD.260 So, what interesting Supply Chain / Logistics questions should I ask? Images of athletic shoe and potato chip bag removed due to copyright restrictions. Chris Caplice, MIT 4 MIT Center for Transportation & Logistics ESD.260 Customers Suppliers P1 Plan Supply Chain Plan Plan P2 Plan Source P3 Plan Make P4 Plan Deliver Source Make Deliver S1 Source Stocked Products M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products S2 Source MTO Products S3 Source ETO Products Supply-Chain Operations Reference (SCOR) Model Return Source P5 Plan Returns Return Deliver Enable Source: Supply Chain Council Chris Caplice, MIT 5 MIT Center for Transportation & Logistics ESD.260 Traditional Functional View Purchasing / Procurement What to buy from who Corporate vs Group Inventory Control How much to stock where Trigger points Replenishment plan Warehousing Storage, Mixing, Break bulk Pick Pack and Ship What to stock where in WH Materials Handling How to move product Packaging, containerization Storage layout Order Processing Receiving, Entry & Status Order Management Transportation Inbound versus Outbound Domestic versus International Modal control (Rail, TL, LTL, Parcel, Air, etc.) Customer Service Geographic Product Line Specific Planning Group Facility Location Network Design Demand Planning Chris Caplice, MIT 6 MIT Center for Transportation & Logistics ESD.260 Supply Chain as a System Take an Engineering Systems Perspective What is a variable and what is a constraint? Continuous expansion of decision variables Increases potential for improvement but increases both complexity and coordination requirements P u r c h a s in g W a r e h o u s in g I n v e n t o r y M g m t M a t e r ia l H a n d l in g O r d e r P r o c e s s in g T r a n s p o r t a t io n C u s t o m e r S v c Objective : Deliver at lowest transport cost Variable : Select carrier to tender each load to Constraints : Ship everything each day Must deliver within specified windows Chris Caplice, MIT 7 MIT Center for Transportation & Logistics ESD.260 Take an Engineering Systems Perspective...
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This note was uploaded on 12/06/2011 for the course ESD 1.260j taught by Professor Chriscapliceesd during the Fall '06 term at MIT.

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lect2 - Chris Caplice ESD.260/15.770/1.260 Logistics...

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