2-2011=Revision-THEORY-FINAL=NEW - Chapter 4 Product and Service Design Page 128 Product or Service Design Page(Page 131 Objectives of(Page Activities

2-2011=Revision-THEORY-FINAL=NEW - Chapter 4 Product and...

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1 Chapter 4 Product and Service Design Page 128) Product or Service Design Page 128) Product or Service Design Activities Activities 1. 1. Translate customer wants and needs into product and service requirements 1. Refine existing products and services 2. Develop new products and services 3. Formulate quality goals 4. Formulate cost targets 5. Construct and test prototypes 6. Document specifications (Page 131) Objectives of (Page 131) Objectives of Product and Service Design Product and Service Design Main focus Customer satisfaction Understand what the customer wants Secondary focus Function of product/service Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance/service
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11 Chapter 11 Supply Chain Management
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11-3 (Page 512) Typical Supply Chains (Page 512) Typical Supply Chains Purchasing Receiving Storage Operations Storage Production Distribution
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11-4 (Page 512) Typical Supply Chain for a Manufacturer Manufacturer Supplier Supplier Supplier Storage } Mfg. Storage Dist. Retailer Customer Figure 11.1a
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11-5 Supplier Supplier } Storage Service Customer (Page 512) Typical Supply Chain for a Service Service Figure 11.1b
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11-6 1. Improve operations 2. Increasing levels of outsourcing 3. Increasing transportation costs 4. Competitive pressures 5. Increasing globalization 6. Increasing importance of e-business 7. Complexity of supply chains 8. Manage inventories (Page 514) Need for Supply Chain (Page 514) Need for Supply Chain Management Management
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11-7 (Page 515) Bullwhip Effect (Page 515) Bullwhip Effect Figure 11.3 Final Customer Initial Supplier Demand Inventory oscillations become progressively larger looking backward through the supply chain
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11-8
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Page 515 The Bullwhip Effect Variations in demand cause inventory fluctuations to fluctuate and get out of control Inventory fluctuation can be magnified by Periodic ordering Reactions to shortages Forecast inaccuracies Order batching Sales incentives and promotions Liberal product return policies Results in Higher costs Lower customer satisfaction
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Page 515 Mitigating the Bullwhip Effect Good supply chain management can overcome the bullwhip effect Strategic buffering Holding inventory at a distribution center rather than at retail outlets Replenishment based on need Vendor-managed inventory Vendors monitor goods and replenish retail inventories when supplies are low
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Page 515 The Bullwhip Effect
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Benefits of Supply Chain Management Organization Benefit Campbell Soup Doubled inventory turnover rate Hewlett-Packard Cut supply costs 75% Samsung Reduce inventory buffer from 21 to 15 days Wal-Mart Largest and most profitable retailer in the world
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11-13 Benefits of Supply Chain Management Lower inventories Higher productivity Greater agility Shorter lead times Higher profits Greater customer loyalty Integrates separate organizations into a cohesive operating system
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11-14 (Page 515) Global Supply Chains (Page 515) Global Supply Chains Increasingly more complex Language Culture
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