1. Why is it important to consider uncertainty when evaluating supply chain design
There is little in life that is certain, so it is important to consider the impact that
uncertainty has on the supply chain. Mod
1. What is the role of safety inventory in the supply chain?
Safety inventory is inventory carried to satisfy demand that exceeds the amount
forecasted for a given period. As such, it tends to have a negative impact on
1. What is the bullwhip effect and how does it relate to lack of coordination in a
The bullwhip effect refers to the fluctuation in orders along the length of the
supply chain as orders move from retailers to
Enterprise Applications and Business Process Integration
Enterprise Applications and Business Process
Enterprise systems, supply chain management systems, and customer relationship
Designing Distribution Networks and Applications to e-Business
Distribution occurs between every pair of stages in the supply chain.
Distribution only occurs between manufacturing and consumers
Supply Chain Drivers and Metrics
The major drivers of supply chain performance are facilities, inventory,
transportation, and information.
The major drivers of supply chain performance are custo
1. What role does forecasting play in the supply chain of a build-to-order
manufacturer such as Dell?
Although Dell builds to order, they obtain PC components in anticipation of
customer orders and therefore they rely on
1. Consider a supermarket deciding on the size of its replenishment order from
Proctor & Gamble. What costs should it take into account when making this
The main cost categories for the supermarkets inventory pol
Designing Global Supply Chain Networks
Decisions made during the supply chain design phase regarding significant
investments in the supply chain, such as the number and size of plants to build,
the number of trucks to purchase or l
1. How would you characterize the competitive strategy of a high-end department
store chain such as Nordstrom? What are the key customer needs that Nordstrom
aims to fill?
The Nordstrom web site states the following. Over
Network Design in the Supply Chain
Supply chain network design decisions include the location of manufacturing,
storage, or transportation-related facilities and the allocation of capacity and roles
to each facility.
Determining the Optimal Level of Product Availability
The level of product availability is also referred to as the customer service level.
A supply chain can use a high level of product availabilit
Pricing and Revenue Management in a Supply Chain
Revenue management is the use of marketing to increase the profit generated
from a limited supply of supply chain assets.
Pricing may influence
Sales and Operations Planning: Planning Supply and Demand in a Supply Chain
Predictable variability is change in demand that cannot be forecasted.
Faced with predictable variability of demand, a co
Coordination in a Supply Chain
Supply chain coordination improves if all stages of the chain take actions that
together decrease total supply chain profits.
Supply chain coordination requires each
Demand Forecasting in a Supply Chain
The forecast of demand forms the basis for all strategic and planning decisions in
a supply chain.
Throughout the supply chain, all pull processes are perfor
Sourcing Decisions in a Supply Chain
Purchasing, also known as procurement, is the process used to rate supplier
Sourcing processes include the selection of suppliers, design of s
Managing Uncertainty in a Supply Chain: Safety Inventory
Safety inventory is inventory carried for the purpose of satisfying demand that
exceeds the amount forecasted for a given period.
DSC2006 - Operations Management
1. Introduce Operations Management (M)
Concepts, theories, and a set of analytics tools
2. Raise awareness and interests in M
This is a bonus to us! Please participate my weekly end
of lecture: May I ge
Running Head: RINGS AND MODULES
Rings and Modules
The central characters of this course are algebraic objects known as rings. A ring is any
mathematical structure with a notion of addi
Chapter 1 Inventory and Overview
Competition in the Industry
Marketing: Identifying customer wants and/or needs, Pricing,
Advertising and promotion
Operations: Product and service design, Cost of organizatio
Lecture 2: Product Design, Process Analysis, Capacity Planning
o Cost / availability
o Social & demographic
o Political, liability, legal
Key design issues
DSC2006: Operations Management (OM)
Recap/Summary of Previous Lecture
OM is the management of the operations function
Operations function is the part of an organization that is responsible for the processes that design,
manage, improve, and deliver its pr
Usually: are not arranged according to a particular production sequence, can handle varied processing
requirements (common in service), can process jobs of same requirements in batches
Reduction of setup time, and choosing right batch size
Value-Added: Difference between cost of input and value of output
Strategic Tradeoffs: Tradeoff between Quality and Price
Efficient Frontier: Minimum curve all companies should aim to be
Characteristics of Products and Services:
INTRODUCTION TO OPERATION MANAGEMENT (CHAPTERS 1 AND 2)
Operation Management: Management of systems or processes that create goods and/or provide services. Involve
planning, coordination and execution of all activities that create goods and services. To b
Lecture 2- Process and capacity
Product-process matrix: opportunity costs (output is not enough, lose profit, higher unit production cost), out-ofpocket costs (too high volume produced, sell inventory cheaper, mkt mechanism required to increase demand,