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Operations Management Chapter 11 –Supply-Chain Management(PPT-36)
The Strategic Importance of the Supply Chain Supply-Chain Management A Supply Chain Global Supply-Chain Issues Global Supply-Chain Issues Supply-Chain Economics Outsourcing Ethics in the Supply Chain Principles and Standards for Ethical Supply Management Conduct Principles and Standards for Ethical Supply Management Conduct Principles and Standards for Ethical Supply Management Conduct Principles and Standards for Ethical Supply Management Conduct Supply-Chain Strategies Many Suppliers Few Suppliers Vertical Integration Vertical Integration Keiretsu Networks Virtual Companies Managing the Supply Chain Issues that complicate development of an Integrated Supply Chain Issues that complicate development of an Integrated Supply Chain Opportunities to Deal with the Bullwhip Effect Internet Purchasing Vendor Selection Vendor Selection Logistics Management Distribution Systems Distribution Systems Distribution Systems Distribution Systems Cost of Shipping Alternatives Example 3 on Page 450 Cost of Shipping Alternatives Logistics, Security, and JIT Pipelines Used for transporting oil, gas, and other chemical products Product in transit is a form of inventory and has a carrying or holding cost Faster shipping is generally more expensive than slower shipping We can evaluate the two costs to better understand the trade-off (shipping costs vs. holding costs) A shipment of new connectors for semiconductors needs to go from San Jose to Singapore for assembly. The value of the connectors is $1,750 and the holding cost is 40% per year. One airfreight carrier can ship the connectors 1 day faster than its competitor, at an extra cost of $20. Value of connectors = $1,750.00 Holding cost = 40% per year Second carrier is 1 day faster and $20 more expensive Daily cost of holding product = x /365 annual holding cost product value = (.40 x $1,750)/ 365 = $1.92 Since it costs less to hold the product one day longer than it does for the faster shipping ($1.92 $20), we should use the chea
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