SCM 303 Chapter 9 PPT - SCM 303 Customer Management-1...

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Michigan State University, 2010 - 1 - SCM 303 Customer Management
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Michigan State University, 2010 - 2 - Design and execution of the processes that provide customers with products and services they desire. Customer Service Product availability Lead time performance Service Reliability Customer Satisfaction Meet or exceed customer expectations Customer Success Assist customers in meeting objectives Figure 9-1 Customer Management
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Michigan State University, 2010 - 3 - Product Availability : inventory available when and where desired by customer Difference in stock out and fill rate! Units Lines Orders Orders Units Lines Delivered Delivered Delivered 1,000 20,000 5,000 19,500 4,800 910 Unit Fill Rate : % of ordered units delivered = 19,500/20,000 = 97.5% Line Fill Rate : % of order lines filled in total = 4,800/5,000 = 96% Order Fill Rate : orders shipped complete = 910/1000 = 91% Example 9-1 Customer Service
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Michigan State University, 2010 - 4 - Lead Time : time between start and end of an activity Design : conceptualize, design & test Order : place and schedule for production Procurement : source and arrive Production : start to end of production Delivery : warehousing & transportation to customer Why is lead-time reliability typically more important than lead-time average speed?
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