Agenda

Reinforcing the Human Elements In

Downstream Supply Chain in TOC way

By: Kuldeep Singh, Dr.Sheelan Mishra

A-B1:Disaster becomes more damaging if the needed material/service is not delivered within tolerance timeA-B2:we don’t have control over timing and quantum of disaster A-B3:Demand forecasts do often fail A-B4:Substandard infrastructure in underdeveloped regions.

B-D1: Shortages means failures of relief operations. B-D2: Donors need higher ROI of the humanitarian aid.B-D3: Life lost is lost forever customers B-D4:Having too little inventory guarantees a bad offering to clients.

D

D’

A

C

B

A-C1:Cost of Carrying InventoryA-C2:Limited CashA-C3:Having too much inventory (almost) guarantees a bad offering to clients.

C-D’1:Limited capital available from donorsC-D’2:Donors need higher ROI of the humanitarian aid

D-D’1:Frequent stockouts and excess stock situations become common problems.

D-D’2:Poor performance of supply chain puts pressure on supply chain members

Maintain high Inventory (Higher Cost)

Maintain lower inventory (Control Cost)

Supply less material than what is needed

To Meet disaster Demand properly

Supply all material what is needed

Strategy: The supply chain holds, most of the inventory warehouse(s), which are appropriate to ensure availability

Strategy & tactic tree (SnT)

4:1:1Arranging for

W/H s

4:1:2Building

Initial Inventories

4:1:3Replenishing

4:1:4Aligning Suppliers

3:1 Ensure 100%

Availability

Build

4:1:5Keeping Correct

Inventory Levels

5.15.1Buffer

Management

5.13.1Rationing

5.13.2 Dealing with

excess inventory

•“Principal of Aggregation”

•Determine buffers inventory levels(Norms)

Replenishment level

0 units

ConsumptionReceipt

Conclusion

TOC helps in ensuring availability of the right products, at the right time, at right location.

TOC helps in taking away pressure from supply chain members and their performance gets improved in the absence of emotional disturbances and undesirable negative cognitive & affective responses.

Eventually, It brings the well-deserved respect and dignity for them(humanitarian approach).