The critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future.
The cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver.
The criterion customers use to differentiate the services or products of one firm from those of another.
Productivity The value of outputs (services and products) produced divided by the values of input resources (wages, costs of equipment, etc.) Productivity = Output/Input
The minimum level required from a set of criteria for a firm to do business in a particular market segment.
CHAPTER 1 & Supplement A
Process StrategyThe pattern of decisions made in managing processes, so that the processes will achieve their competitive
Process Structure in Manufacturing
• Job Process • Batch – Small or Large • Line • Continuous Flow
Service Customer Contact Matrix
Production and Inventory Strategies:
• Make to Order • Assemble to Order
– Postponement – Mass Customization
• Make to Stock
– Mass Production
The sample mean is the sum of the observations divided by the total number of observations.
The standard deviation is the square root of the variance of a distribution.
Q = shipping quantity P = price per unit
Cross docking- items are carried from the incoming truck to the outgoing truck without be stored in inventory, packing products on incoming shipments so that they can be easily sorted at intermediate warehouses for outgoing shipments •The levers for improving supply chain performance –Sharing data –Collaborative activities –Reduce replenishment lead times –Reduce order lot sizes –Ration short supplies –Use everyday low pricing (EDLP) –Be cooperative and trustworthy
H = carrying cost per unit L = lead time dbar = average demand OR demand / days operating
Preference Matrix = Identify critical factors
Just this square is Chapter 11
Bullwhip effect- increasing variance from the customer demand to supplier demand in the supply chain VMI –Vendor manage inventories—supplier manages the customers inventory; order, stock, etc. requires trust, collaboration, on-site presences Referent source of power—supplier values identification with the buyer, example—the fact that a firm is supplying IBm may open the door for business with other customers Expert source of power—the buyer has access to knowledge, information, and skills desired by the supplier, example—a supplier to UPS may get access to logistics planning skills possessed by UPS Coercive source of power—the buyer has the ability to punish the supplier, example—the buyer threated to cancel future business with the supplier unless the supplier adheres to the buyers demands. Primary goal of purchasing— the activity that decides which suppliers to use, negotiates contracts, determines whether to buy locally.
Assign weight to each factor based on importance Assign a score to each location Calculate weighted score (weight x score) Sum weighted scores Location with the highest score is preferred location
SCOR model – many supply chain managers are familiar with this model Takes a process view of an integrated supply chain Includes all the major functions of a supply chain that need to be managed Plan – overall supply chain Source – suppliers Make – process choices Delivery – transportation modes, DC, warehouse, etc. Return – process to handle returns – often requires a different supply chain structure
Everything else is Chapter 12
New Service/Product development: Design – should support corporate strategy Analysis – how its going to be produced, will it be profitable Development – of new product Full launch...
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