Managing Operations: Week 9

What is a Supply Chain?

• Network organisations work together convert + move goods raw materials stage - end customer.
• Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers.
• Includes movement products suppliers, manufacturers + distributors + info, funds + products both directions.

Upstream & Downstream supply chain

• Upstream: Firm's suppliers, suppliers' suppliers, processes managing relationships them.
• Downstream: Organisations + processes responsible delivering products customers.

Importance of Supply Chain

• New business environment, many organisations least member one supply chain.
• Organisations establish relationships partners compete effectively.

Decision Phases of a SCM

• Supply chain strategy/design
• Supply chain planning
• Supply chain operation
• Supply chain management layers

Supply chain strategy/design

• How structure supply chain chain over next several years.
• Decisions structure supply chain + what processes each stage perform.
• Examples of Strategic supply chain decisions: Whether outsource/perform supply chain function house?, Locations + capacities production + warehousing facilities?

Supply chain Operation

• Time horizon weekly/daily
• Decisions regarding individual customer orders.
• Goal implement operating policies effectively possible.

Supply Chain Planning

• Definition set policies govern short-term operations.
• Starts forecast demand coming year.
• Examples Planning decisions: Which markets be supplied from which locations? Subcontracting manufacturing.

Process view of a Supply Chain

• cycle view: Processes supply chain divided series cycles, each perfomed interfaces between 2 successive supply chain stages.
• Push/Pull View: Processes supply chain divided 2 categories depending whether they executed reponse customer order (pull)/anticipation customer order (push).

Cycle view of Supply Chain Processes

• Customer
• Retailer: Customer Order Cycle
• Distributor: Replenishment Cycle
• Manufacturer: Manufacturing Cycle
• Supplier: Procurement Cycle

Push/Pull View of Supply Chain Processes

• Pull: Execution initiated response to customer order (reactive).
• Push: Execution initiated anticipation customer orders (speculative).

Driver of Supply Chain performance 

• Facilities: Physical locations supply chain network where product stored/assembled.
• Inventory: All raw materials, work process + finished goods within supply chain.
• Transportation: Moving inventory from point-point in supply chain.
• Info: Data + analysis concerning facilities, inventory, transportation, costs, prices + customers throughout supply chain.

The role of Transportation in Supply Chain

• Movement product from 1 location another.
• Products rarely produced + consumed same location.
• Significant cost component.
• Examples: Air, Truck + Rail

Role of Information Technology (IT) in Supply Chain

Used make decisions about:

• Facilities 
• Inventory
• Transportation

Info provides foundation which supply chain processes execute transactions + managers make decisions. So, the info must be:

• Accurate
• Accessible in timely manner.
• Shared

Supply Chain Management Benefits

• Match supply demand; reduce inventory levels.
• Improve delivery service.
• Speed product time market.
• Use assets more effectively.

Role of Information Technology (IT) in Supply Chain

Used make decisions about:

• Facilities 
• Inventory
• Transportation

Info provides foundation which supply chain processes execute transactions + managers make decisions. So, the info must be:

• Accurate
• Accessible in timely manner.
• Shared

Supply Chain Management Benefits

• Match supply demand; reduce inventory levels.
• Improve delivery service.
• Speed product time market.
• Use assets more effectively.