...Introduction to Supply Chain Management * Supply Chain Management: A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements. * Takes into consideration every facility that has an impact on cost and plays a role in making the product conform to customer requirements * Be efficient and cost-effective across the entire system * Supply chain strategies cannot be determined in isolation. They are directly affected by another chain that most organizations have, the development chain – includes the set of activities with new product introduction * It is challenging to design and operate a supply chain so that total system-wide costs are minimized, and system-wide service levels are maintained. * Uncertainty and risk are inherent in every supply chain * The development and supply chains intersect at the production point (HP was one of the first firms to recognize this intersection) * What makes finding the best system-wide, or globally optimal, integrated solution so difficult? * The supply chain is a complex network (Ex: National Semiconductor) * Different facilities in the supply chain frequently have different, conflicting objectives. * The supply chain is a dynamic system that...
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...ASIA e UNIVERSITY - ASIAN COLLEGE OF MANAGEMENT MASTER OF BUSINESS ADMINISTRATION/EMBA GROUP ASSIGNMENT No: 01 |Names and Student ID Numbers: | |Nuwan Gunathilaka : AeU/14/13/195 | |Title of the Assignment: | |Research and analize of Debug Computer peripherals Network products supply chain. | |Subject: SUPPLY CHAIN MANAGEMENT | |Code: MMS707 | |Non-paper attachments: | |Submission date: 29th November 2014 |Time 8.00 A.M | |Student’s declaration: I certify that I have not plagiarized the work of others or participated in unauthorized collusion when | |preparing this assignment. | |Signature:……………………………………………. Date:……………………… ...
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...What is Supply Chain Management (SCM)? • Boundary Spanning Nature of SCM Introduction to Supply Chain Management • The Rise of SCM • Characteristics of a Competitive Supply Chain • Trends in SCM • Careers in SCM and Professional Organizations • Review Copyright 2011 John Wiley & Sons, Inc. 1-1 Copyright 2011 John Wiley & Sons, Inc. 1-2 What is Supply Chain Management? Supply Chain Management (SCM) is the design and management of flows of products, information, and funds throughout the supply chain Supply Chain Stages A typical supply chain may involve many different trading partners, called stages Stages may include: – Suppliers – Producers – Wholesalers/Distributors – Retailers – Customers Copyright 2011 John Wiley & Sons, Inc. 1-3 Copyright 2011 John Wiley & Sons, Inc. 1-4 SCM Activities SCM activities include: • Coordination – coordinate the movement of goods, services, and funds through the supply chain Managing Flows Through the Supply Chain Managing Flows of Products, Information, and Funds: • Flow of Products – from the beginning to the final customer – Reverse Logistics • Information Sharing – share forecasts, point-of-sale data, planned promotional campaigns, and inventory levels • Collaboration – jointly plan, operate, and execute business decisions as one entity Copyright 2011 John Wiley & Sons, Inc. 1-5 Copyright 2011 John Wiley & Sons, Inc. 1-6 1 10/15/2012 Managing Flows Through the Supply Chain...
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...INSE 6290 Quality in Supply Chain Design DISTRIBUTED COORDINATION IN SUPPLY CHAIN MANAGEMENT CONCORDIA UNIVERSITY November 5, 2013 Montreal, Canada 1. INTRODUCTION A supply chain refers to the production and distribution process from raw materials to finished goods. Members of the supply chain are dependent on each other to reduce overall cost and maximize their profit. This dependency, resulting in risk and uncertainty along with benefit, has recently been increasing due to the rapid innovation of information technology, globalization, and outsourcing. A need for coordination mechanism arises from interdependencies between the activities of supply chain members and this need differs depending on sources of complexity and uncertainty. Supply chain coordination is ``a term encompassing cooperation (joining operation), collaboration (working jointly), and integration (combining into an integral whole). It also involves information system alignment (jointly expanding the information structure beyond the boundaries of each supply-chain member). These elements constitute coordination mechanisms to manage independencies among supply chain members`` (Botta-Genoulaz 2010). Below is the conception model of supply chain coordination (Arshinder 2011). [pic] A literature review is presented in this paper to highlight the importance of supply chain coordination. The objective...
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...Chapter 1 - Introduction A supply chain is basically a group of independent organizations connected together through the products and services that they separately and/or jointly add value on in order to deliver them to the end consumer while supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize systemwide costs while satisfying service level requirements. Supply chains can be triggered by product supply (commodities) or by customer demand (customized products). The degree of customization dictates how much and in which format the supplying company holds inventory: no stock at all, raw or basic materials only or sub-assemblies of their products as in the famous example of Dell computers. The strategies and associated decoupling of product supply from customer demand form a crucial part of supply chain management. Supply Chain Council has developed the supply chain operations reference model (SCOR) that depicts the broad spectrum of generic functional processes in the supply chain and shows that the functional processes of plan, source, make, deliver and return take place within every stage of the supply chain. When you start engaging in supply chain management, you will most likely be confronted with some of these questions: * How many products are...
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...examines how the structure of a supply network can affect the inter-organizational knowledge sharing capability, which is expressed by absorptive capacity and shared identity. The supply network structure is analyzed by two dimensions – formality and centrality. Propositions about the relationships between network structure and knowledge sharing capability are suggested at the end. Subject Areas: Supply chain management, Inter-organizational knowledge sharing, Absorptive capacity, Shared identity, Network structure. 1 1. INTRODUCTION Historically, individual organizations have tried to improve their own performance in an effort to gain competitive advantage. Today, the success of an individual organization depends largely on the performance of its suppliers and customers [1]. Consequently, supply chain or supply network management is one of the critical success factors in today’s marketplace [2]. As organizations increasingly connect with and rely on partners and suppliers in their supply networks, interdependencies among these organizations naturally increase. This increase, in turn, makes today’s supply networks more complex [3], and members of such complex supply networks face many sources of uncertainties – internal as well as external1. Fisher [4] argues that the strategy of the supply network – lean vs. responsive – should be aligned with the product types – functional vs. innovative, which is classified mainly through the uncertainties emanating from the demand (external)...
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...POMS Abstract Number: 011-0371 Title: Managing Global Food Supply Chain Risks: A Scenario Planning Perspective A. Deep Business School, Loughborough University Loughborough LE11 3TU, UK Email: a.deep@lboro.ac.uk || Phone: +44.1509 223176 S. Dani Business School, Loughborough University Loughborough LE11 3TU, UK Email: s.dani@lboro.ac.uk || Phone: +44.1509228830 POMS 20th Annual Conference Orlando, Florida U.S.A. May 1 to May 4, 2009 Introduction Food is a fundamental requisite for human existence. An agrarian society shows the simplistic form of existence where agriculture forms the core of the society and is the prime means of support and sustenance. That, however, no longer remains the foundation of most of today’s developed economies where food chains are increasingly becoming complex and multi tiered. The chains start with agriculture and ends ultimately, with household consumption. But the numbers of entities between these ends encompass geographical, economic, political and social extremes. This compounded over uncertainty occurring from natural disasters, climate changes, epidemics and terrorist threats place the food supply chain in a particularly vulnerable position. The recent Chinese milk scare which left thousands of Chinese babies ill after consuming melamine tainted milk powder produced by the Chinese Sanlu Group required urgent action by New Zealand, United States and the European Union to issue product warnings to contain the spread of melamine related...
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...Supply Chain Management Name Course Date Supply Chain Management Supply chain management is the supervision of goods and services till they reach the target customers or market. Companies should have supply chains which are efficient, responsive to the needs of clients, agile and risk hedging. Firms and other business entities need to put in place mechanisms that ensure incentives are aligned in the supply chain as expected so that the costs, incurred risks and rewards of carrying out business are distributed equitably across the network. Misalignment of the incentives affects a company ability to control its supply chain resulting in excess inventory, high operational costs with reduced profits and a weak return on assets (Narayanan & Raman, 2004). A company needs to devise strategies which will enhance the supply process of its products till they reach the desired market or customers. One of the methods to be used is the framework of uncertainty which elaborates on the demand and supply uncertainty faced by a product. Fisher introduces the aligning of supply chain strategies at the right level of demand. The demand uncertainty deals with the approximation of the demand for a good and, therefore, the deployment of different supply chains based on the need. Functional products such as basic clothing, food, oil and gas and household consumable items tend to have extended product life and consistent demand, need for a more mature and stable supply process (Narayanan &...
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...Supply chain management (SCM) is a broadened management focus that considers the combined impact of all the companies involved in the production of goods and services, from suppliers to manufacturers to wholesalers to retailers to final consumers and beyond to disposal and recycling. This approach to managing production and logistics networks assumes all companies involved in the process of delivering goods to consumers are part of a network, pipeline, or supply chain. It encompasses everything required to satisfy customers and includes determining which products they will buy, how to produce them, and how to deliver them. The supply chain philosophy ensures that customers receive the right products at the right time at an acceptable price and at the desired location. Increasing competition, complexity, and geographical scope in the business world have led to this broadened scope and continuing improvements in the capabilities of the personal computer have made the optimization of supply chain performance possible. Electronic mail and the Internet have revolutionized communication and data exchange, facilitating the necessary flow of information between the companies in the supply chain. Companies that practice supply chain management report significant cost and cycle time reductions. For example, Wal-Mart Stores Inc. announced increases in inventory turns, decreases in out-of-stock occurrences, and a replenishment cycle that has moved from weeks to days to hours. A fundamental...
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...Aligning Supply Chain Strategies with Product Uncertainties Hau L. Lee upply chain management has emerged as one of the major areas for companies to gain a competitive edge. Managing supply chains effectively is a complex and challenging task, due to the current business trends of expanding product variety, short product life cycle, increasing outsourcing, globalization of businesses, and continuous advances in information technology. The Internet has contributed to both the increasing needs and opportunities for improved supply chain management. With the Internet, companies in a supply chain can be connected in real time with information and knowledge shared continuously, new products and services can be designed to fit special market segments, and new supply chain structures can be developed to serve customers in a more direct manner. S When a company faces the pressure of excessive inventory, degraded customer service, escalating costs and declining profits, or a poor return on assets, its supply chain is out of control. On the other hand, when a company moves in to new markets or new technologies, it must have its supply chain prepared for the new business challenges and opportunities. Although there are many new supply chain concepts and fads designed to exploit the advantages of the Internet, successful companies understand that the right supply chain strategy is dependent on a number of factors: ▪ The strategy needs to be tailored to meet specific...
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...Supply Chain Management: made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers Supply Chain Includes… facilities functions activities involved in the process of delivering a product or service from suppliers to their customers Supply Chain Functions and activities… planning and managing supply & demand acquiring materials producing & scheduling the product/service warehousing inventory control distribution customer service Supply chain management Coordinates all these activities so that customers can be provided with prompt and reliable service Successful supply chain management in turn can provide the company with a competitive advantage Facilities along the supply chain plants warehouses distribution centers service centers retail operations Distribution methods Rail truck water air pipeline computer mail Uncertainty in the chain wrong forecasts late deliveries poor-quality materials or parts machine breakdowns canceled orders slow information transportation breakdowns Coping with uncertainty Insurance inventory companies carry inventory to minimize the negative effects of uncertainty and to keep the productive process flowing smoothly from suppliers to the customer Controlling uncertainty... identifying and understanding the causes of the uncertainty determining how it affects other activities up and down the supply chain formulating ways to...
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...Lacey Edwards Memorial University OF NEwfoundland Student Number: 201135217 Lacey Edwards Memorial University OF NEwfoundland Student Number: 201135217 Inventory Essay Business 6415 – Supply Chain Management Inventory Essay Business 6415 – Supply Chain Management Risk pooling is a powerful tool that addresses the variability in the supply chain because it suggests that demand uncertainty can be reduced if a company combines the demand uncertainty from across locations into one. This theory is based on the fact that high demand from one customer will be offset by low demand from another and likewise. As well, this may impact the average inventory because the demand variability may cause a decrease in safety stock (Piramanayagam, 2009). This report will provide a general overview of risk pooling which will include several types of risk pooling, three critical points of risk pooling, as well as examples where risk pooling is critical during supply chain decision making. Piramanayagam (2009) suggests that the concept behind risk pooling is to redesign the supply chain through the production process or product in order to reduce the demand uncertainty or facilitate a company’s needs when dealing with demand uncertainty and there are several types of risk pooling that allows a company to accomplish this: lead-time pooling, capacity pooling, product pooling, and location pooling. Lead-time pooling is when lead-time is reduced by introducing a distribution center closer...
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...Course Title : Supply Chain Management Course Code : BUS 306 Year of Study : 3 Number of Credits : 3 credits Duration in Weeks : 15 weeks Contact Hours Per Week : Lecture (2.0 hours) Tutorial (1.0 hour) Pre-requisite Course(s) : Nil Course Aims This course aims to provide students with a clear, well-structured and comprehensive understanding of basic concepts and principles of supply chain management. The course will highlight the very important role of supply chain management in creating customer values, and how it plays in today’s global business world. Besides, this course also presents the strategic context in which supply chain managers work. Teaching Approach Both lectures and tutorials will be used. Lectures are designed to introduce the topics and develop students’ understanding of the materials. Tutorials are designed to consolidate what students have learned in the lecture and help them to apply the theories in relevant situations. Participation of students will be vital to the learning process. Current issues in the business fields related to supply chain management will be used extensively to illustrate the practical aspects of the course. Resources Principal Reading 1. Chopra S. & Meindl P., Supply Chain Management – Strategy, Planning, and Operation, Fourth Edition, New Jersey: Pearson Education, 2010. Supplementary Reading: 1. Bozarth, C. & Hanfield, R., Introduction to Operations and Supply Chain Management,...
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...need of transformation. Peter Gibbons was hired to manage the supply chain of Starbucks. The company was reorganized and the supply chain has changed dramatically since then (Starbucks, 2012). Here is a diagram showing the supply chain network of Starbucks in 2014: ... Components of the supply chain Starbucks has commitment to sell only the finest coffees and coffee beverages. To ensure compliance with their coffee standards, they control coffee purchasing, roasting and packaging, and the global distribution of coffee used their operations. The company purchases green coffee beans from multiple coffee-producing regions around the world and custom roast them to the exacting standards for our many blends and single origin coffees. The price of coffee is subject to significant volatility. Although most coffee trades in the commodity market, high-altitude Arabica coffee of the quality sought by Starbucks tends to trade on a negotiated basis. Both the premium and the commodity price depend upon the supply and demand at the time of purchase. In addition to coffee, Starbucks also purchases significant amounts of dairy products, particularly fluid milk, to support the needs of Company-operated stores. Products other than whole bean coffees and coffee beverages sold in Starbucks® stores include tea and a number of ready-to-drink beverages that are purchased from several specialty suppliers, usually under long-term supply contracts. Food products, such as La Boulanger™ pastries, breakfast...
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...Chapter 2: The Integrated Buying Model Tennessee State University MGMT 6220 The integrated buying model is used by the buyer in making buying decisions. Factors that affect decisions made in the integrated buying model are the cost per unit, quality level, and lead time. As each company tries to achieve their competitive advantage, the goals of a purchasing decision may vary. For example, most purchasing decisions require buying the right material at an acceptable cost and quality level within a reasonable lead time. The decision maker must consider multiples goals. As a result, the buyer is faced with several constraints. Budgetary constraints and quality level constraints can cause issues with making the best buying decision. Companies may have limited resources, budgets may not be high enough to cover costs, or the storage size may limit the amount a product can be purchased. Nonetheless, the buyer must achieve the multiples goals within the constraints. The integrated buying model is shown in figure 1. Figure 1: Integrated Buying Model The cost per unit, quantity discount schedule, and price/cost analysis are considered when making buying decisions based on cost. The cost per unit is influenced by the volume or amount purchased, the quality level desired, and the desired lead time. A company’s strategy may to purchase in bulk to buy at a discount which can drive the material costs down. A buyer must also consider the quality...
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