CHAPTER 6 – PLANNING THE SUPPLY CHAIN Flashcards
gives you an opportunity to set goals, evaluate options, and make decisions; it also helps ensure that you invest your time and money wisely
Planning
not a one-time event;is an ongoing and iterative process that ensures your supply chain adapts to changes in your business.
Supply chain planning; planning
different ways to plan supply chain
three main approaches to balancing supply and demand
fundamental question at the heart of every supply chain plan
“How are we going to balance supply with demand?”
three main approaches to balancing supply and demand
a. Make-to-stock
b. Make-to-order
c. Engineer-to-order
-Start by forecasting how much you think customers are going to buy. This forecast drives all your manufacturing and distribution planning.
-sometimes called a push system because you’re pushing products out toward your customers even though they haven’t yet placed orders
Make-to-stock
-your manufacturing and distribution services are standing by, waiting for an order to come in.
-This approach is an example of a pull system because an order has to pull the products through the supply chain
Make-to-order
-making a customized product for each order, so you can’t finish the product design until your customer gives you the specifications.
-Pull system
Engineer-to-order
Supply chain plans are built around
goals, or requirements.
planning always starts by
identifying a requirement
Anything used to make supply chain work___& (4)
Resource:
People
Facilities
Inventory
Machines
– Things each resource can do or it can’t do
– may be physical limitations, or they may be limits imposed on the supply chain by financial, safety, and policy rules.
Constraints
Factors involved in aligning resources with requirements
Analyze your Customers
Plan your Products
Plan your Production Systems
Plan your Delivery System
Plan for Returns
– the source of every dollar that flows into your supply chain
– Each ____ is unique, with specific needs, preferences, and constraints.
customer
Three common ways to analyze customers and their needs:
Market segmentation
Persona development
Key customer analysis
segmenting them based on demographic characteristics.
Market segmentation
is a description of an imaginary customer that represents key characteristics of many of your real customers.
persona (or customer profile)
identify actual customers who are most likely to buy your products
Key customer analysis
– can provide useful data for studying your customers by tracking purchases and other interactions with customers
Customer Relationship Management (CRM) System
– can be used to create personas, to analyze market segments, or to study key customer behaviors.
Customer Relationship Management (CRM) System
The supply chain for a product can change based on:
Demand-related factors
Supply-related factors
product designs often change based on customer feedback
Demand-related factors
resources and constraints may dictate that you make changes to your product.
Supply-related factors
Important factors in making decisions for many products:
– Knowing which materials are readily available
– where to get them
– how much they cost
– often evolve over time
– should be incorporated into your supply chain planning
Product characteristics
– lists all the parts that go into a product, and can help you identify many of the resources that should be included in your supply chain plan
Bill of material
– determines when, where, and how to make products so that you can meet your requirements without violating your production constraints
Production Plan
ship all the raw materials to a single facility and manufacture your products there
Centralized Production
involves manufacturing products at multiple sites to satisfy demand in each region
Distributed Production
a good way to increase your access to resources and overcome constraints (such as not having enough space or enough people) in each production facility.
Splitting manufacturing steps across multiple factories
One of the issues to consider when splitting up the steps in a manufacturing process is the impact it will have on inventory
work-in-process inventory, or WIP
Partially assembled products in between manufacturing steps
Work-in-Process Inventory (WIP)
The further one manufacturing step is from the next one, _____between the steps
the more WIP you are likely to accumulate
Factors that constrain delivery system:
-Location
-Characteristics of the product
-Needs of the customers
The work of delivery (which includes moving and storing products)
Logistics
the collection of resources that you use to do this work (moving and storing products)
logistics (or distribution) network.
– The network for returned products
– the flow goes from the customer back to your company.
Reverse Supply Chain
the value of a reverse supply chain is often the_____ from returned products
amount of money that is recovered
– Another strategy for reverse supply chains
– Many products contain valuable materials that can be recovered when the product is no longer needed or when it reaches the end of its life
Recycling
become raw materials for a remanufacturing process that makes like-new parts
(used components)
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