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Unformatted text preview: e them. Do the math. Think again about what could change the answer. Remember that this is one of many decisions over time. 14 Key Learnings for Supply Chain Management     Organizational roles and measurements   11/17/12 Value of postponement International dimensions 15 Value of Postponement HP Network Printer Demand Worldwide 60% 50% Reduced cycle times Lower forecast errors Smaller safety stocks/fewer stockouts Lower obsolescence costs Reduced penalty costs/profit drains Probability of Monthly Demand   50% Average demand = 25,000 per month Average forecast error = 40% at maturity 40% 31% 30% 31% 20% 16% 16% 10% 7%         11/17/12 2% 1% 10,000 20,000 30,000 40,000 1% 50,000 60,000 Monthly Demand in Units »  »  »  »    7% 2% 0% - Reconfiguration and extra handling Premium transportation Prevent lost revenue and profit Prevent loss of market share Changes during product life cycle 16 Organizational roles and Measurements                 11/17/12 Marketing Engineering/Design/Product Management Finance Manufacturing Procurement Logistics/Distribution General Managers Supplier/partner 17 Organizational roles and Measurements       Accountability BET (Break-Even Time) Costs »  »  »  »  »      11/17/12 Product cost Transportation Inventory Obsolescence Stockouts How to measure? Who pays? Net profit Effects of regional P&Ls 18 International Aspects               11/17/12 Product variety Distance and time for supply Power and regulatory requirements Labeling, packaging Forecast complexities Supplier inflexibility Accountability and measurement 19...
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This document was uploaded on 03/18/2014 for the course EECS 6.930 at MIT.

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