...Supply Chain Design Amanda Champion, Andrew Day, Heather Wiggins, Katrina Caver, Yvonne Tagle Jauregui OPS/571 April 25, 2016 W. Pearl Maxwell Supply Chain Design Riordan Manufacturing is considered one of the leading manufacturing companies. They produce plastic containers and parts for fans. The company was owned from a prior company called Riordan and it was purchased when it relocated to Michigan in 1992. About 8 years later it moved to China in which is now where the headquarters are today. In order for Riordan to run smoothly the company forecast the production using the average from the past three years and using the make-to-stock system. This system benefits the customer because they are able to fill the needs of the customers based off the inventory in stock. In this paper Learning Team A will go into more detail on the strategy the company uses, the supplier relationship and the effects on the supply chain, how lean production principles may be used to maximize the efficiency and effectiveness of the electric fan supply chain process, Aggregate Production Plan, Master Schedule, and Materials Requirement Plans for electric fans based off the sales forecast, two metrics to evaluate performance of the electric fan supply chain as well as create a process flow chart. Manufacturing Strategy There are three basic manufacturing strategies: chase, level or combination. For Riordan the manufacturing strategy that works and has the most benefit for the company would...
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...SUPPLY CHAIN NOTES CLASS 3 JAN 20 2016 ANSWER: B ANSWER: D ANSWER: C ANSWER: B ANSWER: A ANSWER: WE HAVE INCREASED DELIVERY TO STORES, COST ARE LIKELY TO HAVE GONE UP AND CUSTOMER SERVICE LEVELS UP. D. ANSWER: C ANSWER: E ANSWER: D ANSWER: A Answer: C Answer: D Raw materials purchased represents: well over 50% of sales for most major manufacturers. Answer: C Answer: D Total cost of ownership Bull Whip Effect: lack of synchronization among supply chain members, lack of communication. Disease is: variability moving upstream moving up to the supply chain. Antidote is communication coordination. ie: infrastructure Class 2 1/22/15 Supply Chain: Buy (Procurement/Purchasing) Make (Manufacture/Operations) Deliver (Logistics) Supply Chain multiple organizations that have internal value chains that link up to make external value chains. Effectiveness is getting to the goal and Efficiency is reaching the goal with less resources. Elements of supply chain is buy make deliver plus integration. Tier 1 has more value than Tier 3, true. Products flow downstream and money upstream and information flows upstream and downstream. Chapter 2 Good that are finished can be equipment, services, and maintenances. 2 categories: merchants and industrial buyers. Walmart would be merchants, all retailers are more into merchants, and Colgate would be industrial buyers. Supply management: find out sources of supply and buy them. Get the right stuff (access...
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...INVENTORY MANAGEMENT AT AEROMECH TECHNOLOGY PVT LIMITED PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF PESIUP BY CHAITANYA JAIN @03278008 YEAR OF SUBMISSION 2015-2016 TO WHOMSOEVER IT MAY CONCERN This is to certify that Ms. Chaitanya Jain bearing Banner ID: @03278008 studying in 2nd semester MBA from PESIT-IUP program, Bangalore has successfully completed her project work on ‘Inventory Management’ in our organization as part of her curriculum to completed the course for the period 4.03.2016 to 25.04.2016. We found her to be regular and punctual during project work. We wish her good luck. DECLARATION This is to declare that the project titled SCM-WEEKLY AUDITING under the guidance of MR. RAKESH SENDWAL is original and I have carried out this work and submitted to PES IUP Management Program and has not been submitted for the award of any degree/diploma elsewhere. Date: Place: Bangalore Signature: Reg No: @03278008 Name: Chaitanya Jain TABLE OF CONTENT CONTENT | PAGES | Chapter I: Introduction | | Chapter II: Company’s History: Origin, growth and expansion | | Chapter III: | | | | Chapter I: Introduction Company’s History: Origin, growth and expansion Aeromech was established on 1st December, 2006 as a precision component manufactures and became an OEM by entering into Machine Tool segment...
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...Enhancing Competitiveness: Moving from Supply Chain to Demand Chain Management Dr. Pankaj M. Madhani Introduction Supply chain involves all activities associated with the flow and transformation of goods as well as the related information flows from the raw material stage, through to the end user. Supply chain is defined as the integration of key business processes from customers through original suppliers that provide products, services, and information that adds value for end users and other stakeholders. Here, a supply chain includes all the value chain processes from suppliers to end customers. As such supply chain comprises all the supply processes necessary to fulfill customer demand and is managed within supply chain management (SCM). SCM can be defined as “the management of upstream and downstream relationships with suppliers and customers in order to create enhanced value in the final market place at less cost to the supply chain as a whole” (Christopher, 1998). Hence, SCM refers to all of the processes, technologies, and strategies that together form the basis for working with internal as well as external sources of supply. As SCM focuses on the efficient matching of supply with demand it does not help the firm to find out what the customer perceives as valuable, and how this customer-perceived value can be translated into customer value propositions. Hence, supply chain efficiency by itself will not increase customer value and satisfaction as firms also...
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...IMPLEMENTATION Chapter Eleven The Strategy of International Business OBJECTIVES • To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative strategy to power its global expansion. ...
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...While executives are trying to grope for answers in an ever changing environment, the light at the end of the tunnel seems far away and a dim one at that. Regardless of the concepts that will or will not be around three years from now, one thing is certain, the degree of COMPLEXITY is increasing by the day. Healthcare Payors are facing the following points of pain: 1. Managing increasing medical costs and balancing customer satisfaction 2. Reducing operating back-office costs 3. Complying with HIPAA standards and requirements 4. Upgrading IT infrastructure and moving to the web to provide real-time connectivity 5. Focusing on survival and developing a strategy to differentiate products from other incumbents and new players Value Chain vs. Value Chain Competition The healthcare benefit administration value chain is unlike any other. While the manufacturing value chain is easy to decipher and understand, this one is as arcane to do so. The complexity coupled with the dynamism has given rise to multiple organizations...
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...Supply Chain The developments in health care encompassed vertical and horizontal integration, managed care pressures, and the rise of e-commerce. There have also been many other changes, few of them are: Hospitals and hospital systems vertically integrated into the health insurance business, such as starting up their own Health Maintenance Organizations (HMOs) and ambulatory care practices, in the process of developing Integrated Delivery Networks (IDNs). Attempts to integrate downstream towards the patients to capture a greater portion of patient flows and insurance premiums lead to the development of HMOs. Initially such attempts were futile and providers had to integrate upstream with the wholesalers and distributors to improve their financial position. Every major player along the value chain horizontally consolidated to form large organizations. Hospitals merged to form hospital systems or joined other systems. Group purchasing organizations (GPOs) started catering to different systems and distributors started building warehouses where demands from various systems are consolidated. A typical healthcare supply chain is a complex network consisting of many different parties at various stages of the value chain. The three major types of players are: Producers (product manufacturers), Purchasers (group purchasing organizations, or GPOs, and wholesalers/distributors), and health care providers (hospital systems and integrated delivery networks, or IDNs). This chain is shown...
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...Supply Chain Management According to APICS, a supply chain is a “Global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution and cash.” The Basic Supply Chain consists of three units….Supplier, Producer and Customer Four basic flows connect these entities together: 1. The flow of physical materials and services from suppliers to producer to customer 2. The flow of cash from the customer back “upstream” toward the supplier 3. The flow of information back and forth along the chain 4. The reverse flow of products returned for repairs, recycling or disposal.(This is called reverse supply chain and is handled by reverse logistics.) Value Chain (Vs) Supply Chain A Value Chain can be any series of activities that increases the value of a product or service as it passes through stages of development and distribution before reaching the end user. Supply Chain is but one part of value Chain. In basic terms, your supply chain consists of your suppliers, your customers and of course, yourself—the producer. Your extended supply chain adds your supplier’s supplier and your customer’s customers to create your extended supply chain. In order to maximize your competitive advantage you need to strengthen your whole supply chain (the extended supply chain) and turn-it into a value chain. Converting supply chains into value chains is a powerful strategy. Supply chains consist of weak bonds and can be broken...
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...Q1: Despite its growth and size, why is Inventec not very profitable? Ans: Applying Porter’s 5 Forces it is evident that the Taiwanese ODM industry is highly competitive and hence it is hard for any ODM to gain high profits. Following are a few reasons why Inventec is not able to earn a handsome profit: * There is intense competition among ODM vendors such as Compal, Quanta, Mitac etc. All these firms manufacture similar products and hence there is very little differentiation. * Excessive fragmentation in the ODM market has caused lower bargaining power for the ODMs. In 2005 both Apple and Cisco split their contracts to multiple ODMs which lead to a drop in Inventec’s stock price. * Inventec had exclusive contracts with Compaq and Toshiba leading to customer lock in. Thus, when HP acquired Compaq, stocks of Inventec plummeted amidst speculation. However, other ODMs’ stocks were safe as they supplied to multiple OEMs. * Computer products greatly became commoditized in early 2000s. As a result, the OEMs had to squeeze their profits. In turn the OEMs used their bargaining power to squeeze the profits of the ODMs. Thus, for the ODMs profit plummeted from 10% in 2001 to 3-4% in 2004. * Since 2001 easing of Taiwan Government restrictions of high tech investment in China lead to huge cost saving to Taiwan ODMs. This reduced the entry barrier in the ODM industry fueling the already fierce competition in this industry. Q2: What are the drivers of the average profitability...
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...INTRODUCTION OF SUPPLY CHAIN MANAGEMENT A Supply chain is defined as a set of three or more companies directly linked by one or more of the upstream and downstream flows of services, products, finances and information from a source to a customer. It is the systematic and strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain to impose the long-term performance of the individual companies and the supply chain. Supply Chain Management focuses on the management of relationships to achieve better results for all members of the supply chain including customers. The three concepts of Supply Chain Manangement consisting of the business processes, network structure and management in Supply Chain Management that are interconnected tightly. In short, SCM is a total system approach to managing the entire flow of information, materials, and services from raw-material suppliers through factories and warehouses to the end customer. QUESTION 1 YOU ARE DECIDING TO SET UP A RESTAURANT, DECIDE WHAT ARE THE FACTORS YOU WOULD CONSIDER TO DO THIS AS A SUCCESSFUL BUSINESS MODEL ------------------------------------------------- ------------------------------------------------- Top of Form Bottom of Form INTRODUCTION I ever passed a restaurant with the customers talking out of the front door and wondered, “Wow, how did this restaurant become so popular?!” A restaurant doesn’t miraculously get popular overnight...
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...taking care of, and bundling. The working obligation of logistics is the geological repositioning of crude materials, work in procedure, and completed inventories where required at the most reduced cost conceivable Logistics and Supply Chain services are given by an extensive variety of outsider suppliers Components of Logistical System- Five components combine...
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...Supply Chain Management A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains. Supply Chain Management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996).[1] Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally MALUS HOME STORE Malus Home Store was first introduced in 1970 and since then it’s been a very profitable business proposal. They have been present in many main markets of the capital i.e. New Delhi. They deal in all kinds of products & different product lines such...
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...SUPPLY CHAIN MANAGEMENT CASE SUBMISSION REPORT Transforming ASUSTeK: Breaking from the Past Submitted To PROF. JISHNU HAZRA INDIAN INSTITUTE OF MANAGEMENT, BANGALORE Submitted by: Group 6 1311147 Akhil Mittal 1311200 Shashank Shekhar 1311197 Supriya Shailesh Kumar Sehgal 1311195 Sameer Gupta 1311196 Saurabh Kumar Introduction ASUSTeK is a Taiwanese multinational computer hardware and electronics company. It started in 1989 as a motherboard manufacturer and ventured into diverse streams in the coming years. Its motherboard business model was based on white box manufacturers and by early 2000s, ASUSTeK became the number one manufacturer of motherboards in the world. Keeping a firm focus on innovation and technical expertise, ASUSTeK ventured into the Notebook market and gained significant market share. Their attempt to enter the PC market failed due to lack of efficient supply chain expertise and a mismatch in their organisational goals with those needed to succeed in the PC market. ASUSTeK positioned itself as a high-end product manufacturer earning a premium price. It eventually started subsidiaries like AsRock and ASUSALPHA to deal with various market segments like low end motherboards. In a bid to build their own brand name and move away from anonymity, ASUSTeK separated from its contract manufacturing arm (Pegaatron) and retained only their ASUS brand along with the sales and marketing organization. ASUSTeK now targets to become a global leader in the...
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...in Supply Chain: A Simulation Approach to Quantifying the Bullwhip Effect 1 1 Oyatoye, E.O and 2Fabson, T.V.O Department of Business Administration University of Lagos, Akoka-Yaba, Lagos, Nigeria 2 Telsy Value Consult, Onike Road, Iwaya, Lagos, Nigeria Corresponding Author: Oyatoye, E.O ____________________________________________________________ ______________________________ Abstract Supply chain exists due to the fact that it is difficult for any company to provide all that is required from raw materials to final products and at the same time get the products to the end users. Successful supply chain management requires a change from managing individual functions to integrating activities into key supply chain process; hence, accurate information is of essence. One of the key factors that can adversely affect effective and efficient supply chain process is information distortion. Demand forecasting and ordering policies have been recognized as two key causes of bullwhip effect in supply chain management. This study explored the simulation approach in quantifying the effect of bullwhip in supply chain, using various forecasting methods. ____________________________________________________________ ______________________________ Keywords: information distortion, supply chain, simulation, quantifying bullwhip effect, forecasting methods ____________________________________________________________ ______________________________ I TRODUCTIO Supply chain is the integration...
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...a firm advocate of free trade. He recounts several examples of Chinese and India companies that take advantage of low cost labor to integrate into the whole world trade supply chain. From his view, the world is really becoming a seamless world factory where every country works in cooperation along this supply chain. Meanwhile, globalization is bringing a set of globalized values to every corner of the world. Indeed, the world seems like a truly fair playing ground. However, in my view, the world is just far from being flat. The world is in a huge imbalance. Due to the comparative advantage of labor between developing countries and developed countries, the world capital is flowing from the US and European countries which have high labor cost to emerging economies like China and India where there are abundant supply of cheap and skilled labor. On one hand, China and the other emerging economies are accelerating their integration into the interdependence world factory. Gaps in living standards, wage and technology are quickly shrinking. The benefits of economic boom are spreading from those advanced economies to emerging economies. On the other hand, this economic model results in huge trade imbalance and further solidifies the dominance of the developed economies on the upper end of the value chain. To sustain the high annual growth rate, China has to rely on its export-oriented economic model, which caused huge trade surplus and over-supply of currency. Such...
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