ch03 Supply Chain Drivers and Obstacles.pptVIP

Chapter 3Supply Chain Drivers and Obstacles Outline Drivers of supply chain performance A framework for structuring drivers Facilities Inventory Transportation Information Obstacles to achieving fit Drivers of Supply Chain Performance Facilities places where inventory is stored, assembled, or fabricated production sites and storage sites Inventory raw materials, WIP work in process , finished goods within a supply chain inventory policies Transportation moving inventory from point to point in a supply chain combinations of transportation modes and routes Information data and analysis regarding inventory, transportation, facilities throughout the supply chain potentially the biggest driver of supply chain performance A Framework for Structuring Drivers Supply Chain Decisions: Structuring Drivers Facilities Role in the supply chain the “where” of the supply chain manufacturing or storage warehouses Role in the competitive strategy economies of scale efficiency priority larger number of smaller facilities responsiveness priority Example 3.1: Toyota and Honda Components of facilities decisions Components of Facilities Decisions Location centralization efficiency vs. decentralization responsiveness other factors to consider e.g., proximity to customers Capacity flexibility versus efficiency Manufacturing methodology product focused versus process focused Warehousing methodology SKU stock-keeping unit storage, job lot storage, cross-docking Overall trade-off: Responsiveness versus efficiency Inventory Role in the supply chain Role in the competitive strategy Components of inventory decisions Inventory: Role in the Supply Chain Inventory exists because of a mismatch between supply and demand Source of cost and influence on responsiveness Impact on material flow time: time elapsed between when material enters the supply chain to when it exits the supply chain throughput rate at which sales to end consumers occur I RT Little’s Law I inventor