Lecture 07_Supply Chain Management Flashcards
Supply Chain of
Foods Industry
1. multi-product problem
2. consolidation and regrouping of shipments
- production/finished goods - central warehouse
- cross docking
3. Delivery
- Central warehouse - regional warehouse
- direct delivery of big orders
Planning Problems
of Food industry
1. distribution steps, assignment
2. delivery strategies:
- direct delivery vs. centralization, decentralization
3. sizing and distribution of safety stocks: shelf-life
Supply Chain
Printer Production
Part Production and Assembly
- standardization
- spare part strategy
Warehouse on site, central warehouse, regional warehouse
- international locations
- diversity, postponement
- purchased parts
Order Strategies
1. information flow
2. materials flow:
- Tranportation planning: Standard, express
- Transshipments: intermediate deliveries, avoidance of inability of delivery
Manufacturer-Trade
- Price Planning, contracts
Supply Chain
Chemistry/Pharmaceuticals
Multi Stage Production
- long lead times
- orders, sequences
Planning Problems
- coordinated processes and lot sizes
- product variety, diversity
- safety stocks
Supply Chain Structures
5 Items
- serial: supplier-purchaser Relationship
- convergent: assembly production
- divergent: distribution systems, standardization (multiple used parts)
- generally: Network, link of assembly and distribution aspects
- closed-loop: Recycling, bidirectional material flow
SCOR Model
Supply chain operations reference model
Objectives: ideal-typical, cross-sector reference models
* Definition and visualization of processes, key performance indicator **(KPI) **
* Benchmarking, Best-Practice
Standardized process description, configurability
Hierarchical structure
* Top-level, configuration level, process level, implementation level
SCOR Model
Graphic
- Supplier, Owner Company, Customer
deliver -> Source -> make -> deliver
Process Categories
Discrete
vs.
continuous processes
- Discrete: Assembly
- Continuous: Chemistry, Pharmaceutical
Bullwhip Effect
Phenomenon
* Increasing variability of demand / orders when moving upstream the supply chain
- e.g. Procter & Gamble
Measure: Variance of demands or order quantities
Beer-Distribution Game
Planning situation
-
4-stage, serial logistics chain (manufacturer, central warehouse, wholesalers, retailers,
customer) -
Local inventory control
− Order rules
− Delivery time: 2 periods
* Evaluation
− Inventory, shortfalls
Software tool, Analysis
Reasons for Bullwhip-Effect
- forecast procedure: adjustment of control parameters with each new demand information
- delivery time: forecast errors during replenishment time
- lot sizing: accumulation of deands, transaction motive, quantity discounts
- fluctuating prices: - uncertainty, marketing activities of suppliers
- anticipation of shortages: allocation rules of supplier
Countermeasures for Bullwhip Effect
-
Reduction of uncertainty
* Central information (ERP-Systems)
2. Reduction of variability
* Permanent low-prices
* Reduction of lot sizes
3. Reduction of lead times
* Information: EDI
* Processes
4. Strageic Alliances
- VMI: Vendor managed inventories
5. CPFR
- collaborative planning, forecasting and replenishment
