supply chain operations (making and delivering)
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Supply chain operations (Making and Delivering)TRANSCRIPT
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Supply Chain OperationsMAKING AND DELIVERING
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SC Operations
Plan
Source
Make
Deleviry
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Product Design (Make) Fewer parts, Simple Design, Modular Construction from generic sub-assemblies.
Supply chain Role: ◦ Flexible◦ Responsive◦ Efficient
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Complicated Product Design
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Simple Product Design
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Product with high responsiveness and competitive cost
Manufacturing
Procurement
Design
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Production Scheduling (Make) The Goal is to use available capacity (Equipment, labor, Facilities) in the most efficient and profitable manner.
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High Utilization Rates
High levels of Customer Service
Low levels of inventory
Objectives of Production Scheduling
• Long production runs, • Centralized Manufacturing • Distribution Facilities
• Many short production runs• High inventory levels
• Short Production runs• JIT Delivery of raw materials
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Scheduling a multi-product production facility
Determine the economic lot size for the
production runs of each product
Set the right sequence of production
runs for each product
Scheduling1
2
3 6
5
4 8
9
9
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Run out time R= P/D
R= run out time P= number of units of product on hand D= product demand in units for a day or week
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Facility Management (Make) All facility management decisions happen within the constraints set by decisions about facility locations.
Decisions in three areas :
1. The role each facility will play
2. How capacity is allocated in each facility
3. The allocation of suppliers and markets to each facility
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Order Management (Deliver) Process of passing order information from customers back through the supply chain from retailers to distributors to service providers and producers
CustomerRetailers
Distributer
Service Provider
Producers
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Four Rules of Efficient Order Management1. Enter the order Once and Only Once
◦ once—Capture the data electronically as close to its original source as possible and do not manually reenter the data as it moves through the supply chain.
2. Automate Order Routing◦ Manual intervention should be minimized for the routing and filling of routine orders.
3. Make order status Visible◦ Let customers track their orders through all the stages from entry of the order to
delivery of the products.
4. Use integrated Order management systems
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Delivery Scheduling (Deliver) The delivery scheduling process works within the constraints set by transportation decisions.
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Types of Delivery Scheduling 1. Direct Deliveries2. Milk Run Deliveries
1. The savings matrix technique2. The generalized assignment technique
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Direct Deliveries
Location
Location
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Milk Run Deliveries
Originated Location Location
Location
Location
Location
Location
Location
Location
OR
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Delivery Sources1. Single product locations2. Distribution centers
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Single product locations
Location
Location
Location
Customer
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Distribution centers
Location
Location
Location
Center Customer
Crossdocking
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Thanks