Alle Flashcards
Definition SCM
- Consists of all parties involved directly or indirectly in fulfilling a customer request.
- Includes the flow of products, funds, and information
Supply vs. demand-driven supply chains
- Supply-driven supply chains
- Maximise value creation by observing availability of resources
- Example: Production of sugar is based on the crop available
- Demand-driven supply chains
- Maximise value creation by observing expected demand
- Example: Design of clothes is based on demand forecasts or expected trends
Supply Chain Cycles
Strategic Fit
-
For a strategic fit, competitive and supply chain strategies need to have aligned goals → the SC therefore needs to be adjusted to meet the customer needs and to allow the firm to execute the competitive strategy
- Understanding supply chain capabilities
- Understanding the Customer and supply chain uncertainty
- Achieving strategic fit
Supply-Chain Drivers
Logistical:
- Facilities
- Inventory
- Transportation
Cross-functional drivers:
- Information
- Sourcing
- Pricing
Types of aggregation
- Information centralization → aggregation of information
- Specialization → aggregation of inventory
- Product substitution → aggregation of demand
- Component commonality → aggregation of components
- Postponement → aggregation of products
Supply Chain Coordniation [Definition, Obstacles, Impacts]
-
Definition of Supply Chain Coordination
- All stages of SC take actions that are aligned and increase SC profits
- Creation of incentives that local optimal decisions match globally optimal decisions
-
Obstacles to coordination
- Local optimization of decisions regarding price and ordering
- Information is distorted or delayed between stages of SC
-
Impacts
- Lower order quantities and product availability due to double marginalization
- Global SC optimum is not achieved
- Bullwhip effect
Contracts - Matrix
Instruments of Revenue Management [Name, Explaination]
- Overbooking
- Find compromise between wated capacity and capacity shortages → goal is complete utilization despite uncertain demand
- Differential pricing
- Adjusting prices to meet customer’s willingness to pay → exploit market potential by forming segments
- Capacity allocation
- Allocate capacities to different user segments → maximise profit by accepting or rejecting requests in anticipation of later-coming higher-price buyers
- Dynamic pricing
Factors for effective revenue management [9]
Contract types
Deterministic demand:
- all-unity quantity discount → discount if quantity above global optimum is ordered
Price sensitive demand: → reseller chooses optimal price based on c_m chosen by manufacturer → SC optimum for c_r = c_m
- two-part tariffs → manufacturer gets franchise fee from retailer, but then sets c_r = c_m
- volume-based quantity discount → manufacturer offers dicount once Q is chosen optimally for SC by retailer → p is then chosen by retailer based on that
Coordination [Defination, Obstacles, Impacts]
- Definition: All stages take actions that are aligned and increase SC profits
- Obstacles: local optimization regarding price and ordering, distorted and delayed information flow
- Impacts: higher order quantities and product availability, achieving global SC optimum, reduced bullwhip effect
Collaboration
Process-driven concepts:
- Information sharing → retailer shares info about inventory and orders
-
continuous replenishment programs
- manufacturer regularly replenishes inventory of retailer based on PoS or inventory data
- inventory owned by retailer
- manufactuerer only delivers needed quantities
-
Vendor Managed inventory
- Manufactuerer takes over responsibility of inventory planning
- inventory often owned by manufacturer
- Collaborative planning, forecasting and replenishment → CPFR
Technology-driven concepts:
- Electronic marketplaces
- Tracking and Tracing
- Collaborative SCM-Systems
EMSR-A Heuristic
EMSR-B Heuristic
Optimale CSL → Newsvendor-Modell
Gewinn bei unsicherem Demand → Newsvendor-Modell
Optimale Bestellmenge → Newsvendor-Modell
Optimal lot size
Cycle inventory
→ EOQ-Modell
Deterministic demand → Optimal lot size for SC
Safety inventory
Overbooking
Dynamic pricing → Should order be accepted?
Revenue sharing
- Retailer receives share u of selling price
- Manufacturer offers reduced wholesale price
Modelle
→ Welche gibt es?
- Newsvendor-Modell
- EOQ-Modell
- Little-Wood-Pricing
EOQ-Modell [Assumptions]
- Steady and determnistic demand
- no shortages
- fixed replenishment time
- fixed ordering costs
Little-Wood-Pricing [Assumptions, Function]
- Fixed Capacity
- Two segments with p1 > p2
- Uncertain demand
- Demand for segment 1 is realized after demand for segments 2
→ How much space needs to be saved for higher paying customers?
Newboy/Newsvendor-Modell [Assumptions]
- Uncertain demand given by normal distribution
- Product expires after one season
- Order and delivery at beginning of/before season
- Manufacturer produces exact quantity asked for by retailer
Aggregation of products
Postponement → Delay product differentiation closer to time product is sold
Advantages:
- Higher forecast accuracy
- better alignment of demand and supply
Disadvantages:
- more complex processes
- waiting time for order
- need for modular product design
Safety inventory [Assumptions]
- Demand defined by stochastic distribution → Normal distribution
- Constant delivery time
- Cosideration of one period
- Uncertainty of demand and/or supply
Aggregation of components
Component commonality → Use same components for multiple products
Advantages:
- lower number od parts
- economies of scale
- inventory reduction
Disadvantages:
- harder product design
- changes to existing products
- possible quality issues → all products affected
- difficulties for product differentiation
Aggregation of inventory
Specialisation → Certain products stored only in specialised locations
Advantages:
- reduction of variance → lower safety inventory
- reduction of fixed costs
- reduced delivery costs from manufacturer
Disadvantages:
- increased transport costs to customers/retailers
- increase in response time
Aggregation of information
Information centralization → as inventory is visible globally, orders are fulfilled by closest location with available stock
Advantages:
- Higher responsiveness
- Lower transportation costs
- Higher product availability
- lower safety inventory
Disadvantages:
-none-
Obstacles to coordination [5 → Name and short explaination]
-
Incentive obstacles
- Local optimization → decisions are based on maximising profits of only a single stage without considering overall profits
- Sales force incentives → incentive system, which reward sell-in, not sell- through lead to order variability being larger than customer demand variability → quantity sold to distributors is increased rather than quantity sold to final customers
-
Information-processing obstacles
- Lack of information sharing → short-term promotions cause retailers to increase their order quantity → manufacturers interpret this as a permanent increase in demand → high inventory level
-
Operational obstacles
- Ordering in large lots due to high fixed costs or quantity discounts
- Large replenishment lead times → if demand is overestimated, this leads to a higher forecast and order quantity → this is magnified if lead times are long
- Rationing and shortage gaming → if capacity is limited, quantities are often allocated according to order quantities → incentive to place higher orders independent of demand → gives cause for manufacturer to misinterpret demand
-
Pricing obstacles
- Lot-size-based quantity discounts → leads to increased lot sizes → magnifies bullwhip-effect
- Price fluctuations → trade discounts lead to forward buying by retailers → after promotion is over the retailer only places very small orders
-
Behavioural obstacles
- Local points of view → lack of seeing the overall SC
- Different stages blame another for fluctuations → SC members become enemies
- No stage learns from its actions as consequences may only become visible in other stages
- Lack of trust leads to opportunistic behaviour → information is not shared
CPFR [Name, Objective, Requirements, Potentials]
Objective:
- Increasing product availability while reducing inventory, transportation and logistic costs
Requirements:
- Synchronizing data → finding and eliminating inconsistencies in forecasts
- Standardizing the exchange of information
Potentials:
- Reduction of retail inventories
- Reduction of inventories along the supply chain
Master Production Scheduling vs. Detailed Scheduling
Master Production Scheduling
- Matches available material with available capacity
- Planning object: work orders and quantities
- Considers typically resource groups
- Planning horizon is up to 3 months
Detailed Scheduling
- Generates detailed sequences of materials (per order)
- Planning object: material piece
- Normally one (critical) resource is planned
- Planning horizon is up to 1 week
