!! introduction to supply chain design - edxmitx+ctl.sc2x+3t2015...ctl.sc2x - supply chain design...

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MIT Center for Transportation & Logistics

CTL.SC2x -Supply Chain Design

!! Introduction to Supply Chain Design

CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design

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Information (order)

Financial (payment)

Information (status)

2

Physical (delivery)

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Bicycle

Wholesaler

Retailer

Customer

Wholesaler

Retailer

Retailer

Customer

Customer

Customer

Retailer

Hardware Supplier

Frame Supplier

Tire Supplier

Casting Plant

Gear Supplier

Paint Supplier

Pedal Supplier

Supplier

Rubber Mfg

Pigment Supplier

Chemical Mfg

Supplier

Smelter


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Image Source: Arntzen, B. MIT Center for Transportation & Logistics, Hi-Viz Research Project (2013)

Information (order)

Financial (payment)

Information (status)

Physical (delivery)


design verb de·sign \di-!z"n\!! to plan and make decisions about (something that is being

built or created) !! to create the plans, drawings, etc., that show how

(something) will be made!! to plan and make (something) for a specific use or purpose

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design nouna specification of an object (or system), manifested by some agent, intended to accomplish goals, in a particular environment, using a set of primary (or fundamental) components, satisfying a set of requirements, subject to some constraints.

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Time Series, Exponential Smoothing, Regression

Market Penetration

Forecasting Approach: Quantitative analysis of similar situations

with item using history

Regression of “looks like” items

Product Development

Forecasting Approach: Analysis of similar items: “looks-like”

analysis or analogous forecasting

Customer Panels, Experimental

Market Development

Forecasting Approach: Customer and market analysis to

understand market dynamics and drivers

Delphi, Expert Panel, Scenario Planning, Bass Diffusion

Diversification

Forecasting Approach: Scenario planning & analysis to

understand key uncertainties & factors

Adapted from Kahn, Kenneth (2006) New Product Forecasting. 9


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n

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Mean Absolute Percent Error (MAPE)

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n

tte

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Mean Deviation (MD)


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One-to-One – direct or point to point movements from origin to destination

One-to-Many – multi-stop moves from a single origin to many destinations

VU!

Many-to-Many – moving from multiple origins to multiple destinations usually with a hub or terminal

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$, L, !

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Source: Fisher, M. (1997)


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Source: Olavsun, Lee, & DeNyse (2010) Adapted from Sheffi (2010)


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21

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22

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Decision variables for SC Design : (One option is chosen from each column)

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23



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!Source: Supply-Chain Operations Reference

(SCOR) Model from Supply Chain Council


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29


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30

5 Lessons

4 Lessons

8 Lessons

2 Lessons

MIT Center for Transportation & Logistics

CTL.SC2x -Supply Chain Design

Questions, Comments, Suggestions? Use the Discussion!

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“Wilson’s excited to get started – I hope you are too!”

Yankee Golden Retriever Rescued Dog (www.ygrr.org)


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!! introduction to supply chain design - edxmitx+ctl.sc2x+3t2015...ctl.sc2x - supply chain design...

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