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Supply Chain Management
Chapter 11pp. 338-370
June 28, 2012
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The Transformation Process – Systems Theory
Inputs•Land•Labor•Capital•Information
Outputs•Goods•Services
Transformation/Conversion
Process
Control
Feedback
Feedback Feedback
Value-Added
Feedback = measurements taken at various points in the transformation process
Control = The comparison of feedback against previously established standards to determine if corrective action is needed.
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Supply Chains
• Definition (again)• More succinct
– Source– Make – Deliver
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Supply Chain Processes
Production(make)
Distribution(deliver)
Procurement(source)
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Supply Chain for ServiceProviders
• More difficult than manufacturing• Does not focus on the flow of physical goods• Focuses on human resources and support
services• More compact and less extended
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7
Supply Chains, Uncertainty, Inventory
Profile of Inventory Level Over Time
Quantityon hand
Q
Receive order
Placeorder
Receive order
Placeorder
Receive order
Lead time
Reorderpoint
Demand rate
Time
Constant Demand
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Bullwhip effect
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Supply ChainManagement (SCM)
• Definition• Keys
– information– communication– cooperation– trust
• Benefits
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Information Technology and SCM
• E-business• EDI• Bar coding/POS• RFID
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Radio Frequency Identification
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Radio Frequency Identification
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Information Technology and SCM
• E-business• EDI• Bar coding/POS• Internet
– IBM (example only)• http://www.youtube.com/watch?v=xAe1dxIf_Kk
– Reverse auctions • http://www.freightquote.com/tour/
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Lean Supply Chains and SCM
• Lean suppliers• Lean procurement• Lean manufacturing• Lean warehousing• Lean transportation• Lean customers
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Lean Supply Chains and SCM
• Benefits– Speed and responsiveness– Reduced inventories– Reduced costs– Improved customer satisfaction– Competitive weapon
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Global Supply Chains
• iPhone • See earlier discussion
– Natural disasters• Duties and tariffs
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