Supply Network Design
Supply Network Design
The Supply Network Perspective:
A supply network perspective means setting an operation in the context of all the operations with which it interacts, some of which are its suppliers and its customers.
Materials, parts, other information, ideas and sometimes people all flow through the network of customer-supplier relationships formed by all these operations.
On its supply side an operation has its suppliers of parts, or information, or services. These suppliers themselves : have their own suppliers who in turn could also have suppliers, and so on. On the demand side the operation has customers. These customers might not be the final consumers of the operation's products or services; they might have their own set of customers.
• On the supply side is a group of operations that directly supply the operation; these are often called first-tier suppliers. They are supplied by second-tier suppliers. However, some second-tier suppliers may also supply an operation directly, thus missing out a link in the network. Similarly, on the demand side of the network, 'first-tier' customers are the main customer group for the operation. These in turn supply 'second-tier' customers, although again the operation may at times supply second-tier customers directly. The suppliers and customers who have direct contact with an operation are called its immediate supply network, whereas all the operations which form the network of suppliers' suppliers and customers‘ customers, etc., are called the total supply network.
Homeware manufacturer supplies some of its basic products to wholesalers which supply retail outlets. However, it also supplies some retailers directly with 'made-to-order' products.
Along with the flow of goods in the network from suppliers to customers, each link in the network will feed back orders and information to its suppliers. When stocks run low, the retailers will place orders with the wholesaler or directly with the
The Supply Network Perspective:
A supply network perspective means setting an operation in the context of all the operations with which it interacts, some of which are its suppliers and its customers.
Materials, parts, other information, ideas and sometimes people all flow through the network of customer-supplier relationships formed by all these operations.
On its supply side an operation has its suppliers of parts, or information, or services. These suppliers themselves : have their own suppliers who in turn could also have suppliers, and so on. On the demand side the operation has customers. These customers might not be the final consumers of the operation's products or services; they might have their own set of customers.
• On the supply side is a group of operations that directly supply the operation; these are often called first-tier suppliers. They are supplied by second-tier suppliers. However, some second-tier suppliers may also supply an operation directly, thus missing out a link in the network. Similarly, on the demand side of the network, 'first-tier' customers are the main customer group for the operation. These in turn supply 'second-tier' customers, although again the operation may at times supply second-tier customers directly. The suppliers and customers who have direct contact with an operation are called its immediate supply network, whereas all the operations which form the network of suppliers' suppliers and customers‘ customers, etc., are called the total supply network.
Homeware manufacturer supplies some of its basic products to wholesalers which supply retail outlets. However, it also supplies some retailers directly with 'made-to-order' products.
Along with the flow of goods in the network from suppliers to customers, each link in the network will feed back orders and information to its suppliers. When stocks run low, the retailers will place orders with the wholesaler or directly with the