7.2 Supply Chain Management Flashcards
Describe the Production Plan
Sales forecasting - estimate future demand
High level with estimates made by product group rather than by each individual product item
Forecasts extends for months into future
Determine specific product items that need to be produced and when to meet forecast
Consider production capacity and seasonal variability
Balances market demand with production capacity
What is the purpose of Demand Management?
Determine weekly or daily production needs to meet demand for individual products
What is the Master Production Schedule?
Production plan for all finished goods
What is the purpose of Detailed Scheduling?
Developing detailed production schedule specifying production scheduling details
Which items to produce first
When production should be switched from one item to another
What is the key decision of Supply Chain Management?
How long to make production runs for each product
Longer production runs reduce no of machine setups required, reducing production costs
Shorter production runs generate less finished product inventory and reduce inventory
What is the purpose of Materials Requirement Planning?
Determines amount and timing for placing raw material orders with suppliers
Describe the different types of flows in Supply Chain Management
Material or product flow
Movement of materials or goods through chain
Information flow
Complex set of processes that move detailed data through chain, order, delivery etc.
Financial flow
Transfer of payment for goods and services
Describe the Links element of Supply Chain Management
Can’t be managed as a whole - too complex
Think about series of links each stage of chain interacts with (one up, one back to itself)
Describe the Segments of Supply Chain Management
Backstream - suppliers and sources of goods / services to company
Upstream - customers and buyers of company’s products / services
Each segment can consist of 100’s of links multiple suppliers / sellers and customers
Every link has direct sources and / or direct customers that need to be managed
But not all to the same extent
What is the purpose of SCM Software?
Concentrates on improving decision making, forecasting, optimisation and analysis
Configured to achieve following goals:
Reduce uncertainty and variability to improve accuracy of forecasting
Increase control over processes in order to achieve optimal inventory levels, cycle time and customer service
RFID used in tracking and logistics
