Lecture 8: Supply Chain Systems Flashcards Preview

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Flashcards in Lecture 8: Supply Chain Systems Deck (11):
1

What are the objectives for supply chain operations?

Quality

Speed: service time

Dependability: ability to deliver goods on time and in full

Cost

Resislience

2

What is the difference between functional products and innovative products?

Functional: predictable demand, few changes, low variety, low margin, long lead times

 

Innovative: unpredictable demand, many changes, high variety, high margin, short lead times

3

What is the difference between a LEAN and AGILE supply chain?

Lean supply chains: best in high volume, low variety and predictable environments

 

Agile supply chains: less predictable environments where the demand for variety is high - volume, mix, product

 

 

Lean ideas maximise profits through cost reduction while agility maximises profit through providing exactly what the customer requires.

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4

What are the differences in focus, partnerships, key measure, profit margin, forecasting, purchasing policy and logistics planning in LEAN and AGILE supply chains?

LEAN

  • Focus eliminate waste 
  • Partnerships: long term and stable
  • Output measure such as productivity and cost
  • Profit margin is low
  • Forecasting is algorithmic
  • Purchasing policy is to buy
  • Logistics planning is stable

AGILE

  • Focus is on customers/markets
  • Partnerships are fluid
  • Measure capabilities and focus on customer satisfaction
  • High profit margin
  • Forecasting is consultative
  • Purchasing policy is to assign capacity
  • Logistics planning is an instantaneous response

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5

What are hybrid strategies?

Hybrid strategies enable the upstream part of the chain to be cost effective and the downstream part to achieve high service levels.

 

Examples:

  • Pareto 80:20: lean for volume lines
  • Surge/base demand separation: agile principles for surge
  • De-coupling point: lean up to a point and agile beyond it

6

What are the secrets of Japanese success?

  • Long-term collaborative relationship
  • Dual sourcing: volumes adjusted to performance
  • Continuous improvement
  • Operations and logistics: JIT

7

What are the ways to create closer, more informed and effective relationships between customer and supplier

Approaches:

  • Supplier Relationship Management
    • Commodity, performance, development supplier or partner
  • Vendor Managed Inventory: supplier manages inventory at customer site, takes financial responsibility
  • Collaborative Planning Forecasting Replenishment
    • Combines the intelligence of partners across the supply chain in planning and fulfilling demand
    • Info sharing, coordinated production planning, joint forecasting, coordinated shipments, coordinated promotions

8

What are the pros and cons of collaboration?

Ads:

  • Efficiency
  • Reduced variability
  • Reduced contract costs
  • Mutual learning
  • Greater stability
  • Greater visibility for supplier

Dis:

  • Cost of communication
  • Risk of opportunism
  • Reduced flexibility in supplier selection
  • Information leaks

9

What are the different levels and communication methods in SC partners?

Information services at BUSINESS LEVEL

Electronic data interchange at ORDER LEVEL

Barcode/RFID item data at PHYSICAL PRODUCT LEVEL

10

Explain the different supply chain information systems.

SRM: supplier relationship mgmt.

These applications focus on relationship between supplier and manufacturer adn procurement process that takes place between them.

 

MRP: these systems produce schedules for what to make, where and when to make and how to make it taking into account availability, capacity and other objectives.

 

MES - Manufacturing execution systems

 

Inventory planning systems: observe demand patterns, take inputs on forecasting and produce recommended stocking policy

 

WMS - Warehouse Management systems: Execute inventory planning commands and run day to day operations of warehouse

 

Transportation Execution

 

Demand planning and revenue mgmt.

 

Customer relationship management

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