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MITESD_273JF09_lec03

MITESD_273JF09_lec03 - Issues Issues in Supply Chain Chain...

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sues in Supply Chain Issues in Supply Chain Strategy Don Rosenfield
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Supply chain strategy involves a number of issues nderstanding inputs and outputs Understanding inputs and outputs Strategies for a dispersed network ealing with some trends in globalization Dealing with some trends in globalization Methods for extending benefits ew trends and what they imply New trends and what they imply
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Framework for strategic analysis: Strategic outputs Service level on inventory Variation of service level or delivery time Delivery or service time Customization and breadth of product line or service As for the case of manufacturing, a logistics system needs to align logistics policies to further specific strategic goals
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Supply chain and logistics decisions: puts inputs Inventory levels Transportation choices Inventory position Supplier choices Structure – Number of facilities, number of stages istribution flow Distribution flow Possible customization point (push-pull)
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Supply chain choices urce: source: HP HP Suppliers Factories Distribution Customers Centers Chassis NA Power supplies EU ? otherboards P Motherboards AP Others . . . LA
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Some factors to consider Relative transportation costs Demand uncertainty (e.g. fast movers at many cations locations Product variety
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Dispersed supply chains address p p y a number of issues Scale Logistics and flow patterns Focus Global flexibility and access ccess to R&D Access to R&D
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Product/Market-Process Focus Mean of Focus Volume Product arket Market Process Off On Example Job atch Batch Line Low Vol. High Vol. Detroit aginaw Saginaw Lima ow Vol High Vol Low Vol. High Vol. Job Batch Detroit Fremont Line Lancaster Mayesville
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Scale Analysis Subcontract Technology 1 Technology 2 COST VOLUME
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Consumer goods example 5 1.5 1.4 3 1.3 1.2 1 1.1 1 9 Cost er 0.9 0.8 7 per unit ($/unit) 0.7 0.6 5 0.5 0.4 .3 0.3 0 2 4 6 8 V olume in millions of units
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Suppliers Plants Distribution Centers Customers Network for Multi-location supply chain
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Formulation for general case y ikl A il k x lkj f l A k where f is the unit usage of product l j , l x lkj D lj k y ikl x lkj i j x lkj kz k , z k is zero or one, forcing constraint lj ould also have shared cap at plants.With no warehouses, define Could also have shared cap at plants.With no warehouses, define plant variables to go to customers directly. Can add another level for sourcing or two stages of plants.
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Some global mode l i ling issues Duties are generally linear, as are taxes he general multi tage model applies The general multi-stage model applies The particular case of tax havens can be omplex complex. For many countries one generally For many countries, one generally assumes funds are reinvested or not repatriated.
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MITESD_273JF09_lec03 - Issues Issues in Supply Chain Chain...

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