Week 7 Flashcards
What is an integrated view of supply chain?
A global optimization where we pursue the interest of the supply chain as a whole
What are the 2 types of products?
- Functional: These products have stable predictable demand, long product cycles, and low profit margins
- Innovative: unpredictable demand, short life cycles, high profit margins
What are the 2 types of supply chains?
- Efficient: These fit functional products and focus on the make to stock or push strategy. It wants to minimize costs and use economies of scale
- Responsive: these fit innovative products and looks at pull strategies or make to order, wanting to quickly react to changing market demands
what is the push-pull strategy?
This is where the first part uses a push strategy, while the second part uses a pull strategy. There is a push-pull boundary which is the point of transition. And here, the buffer inventory is held.
Effects of push-pull boundary location
- If too close to customer -> too much inventory is held
- If too far from customer -> lead time is too long
So when should the push strategy be applied and pull during a push-pull strategy?
push strategy should be applied to the portion of the supply chain where demand uncertainty is low and long-term forecasts can be used.
Pull should be applied to the portion where demand uncertainty is high
What is the development chain
this focuses on new or refined product design, sourcing decisions, internal capabilities, and manufacturing approach
what is a modular product
product assembled from variety of modules with different options for modulesw
what is a modular process
product undergoes different operations, having semi-finished product inventory between operations
what is part standardization?
it uses common parts to manufacture multiple products
what is process standardization
starts by producing a generic or family product, which is then differentiated into specific products later in the manufacturing process. So it delays differentiation
What is procurement standardization?
a product may not be standardized, but common equipment is used to produce different products
what is mass customization?
building a large volume of customized products. The key is to delay product differentiation for specific customers until the latest point
What are 3 cost drivers addressed by design for logistics?
- Standardization:
- Concurrent and parallel processing: Allowing processes to be performed simultaneously and not sequentially
- Economic packaging and transportation: products should be compactly packaged to maximize truck space
What is part standardization?
common parts can be used across many products
what is process standardization
the process is standardized so it works for multipe products and customization happens much later
what is product standardisation?
a large range of products are offered and if one runs out, an alternative is given that is better
what is procurement standadrdisation
process equipment and approaches are standardized
what are the 4 types of supplier integration for product development
- None
- white box -> advice is given
- grey box ->collaboration
- black box -> total control on supplier
