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Traditional Supply Chain Flows Demand flow Product flow Decision Support System Copyright ? 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 4-* CHAPTER 4 Order Processing and Information Systems Total Order Cycle: A Customers Perspective Key: 1. Order preparation and transmittal 1 days 2. Order received and entered into system 1 day 3. Order processed 1 day 4. Order picking/production and packing 1 days 5. Transit time 3 days 6. Warehouse receiving and placing into storage 1 day Total order cycle time 8 days 1. Customer places order 6. Order delivered to customer 5. Order shipped to customer 2. Order received 3. Order processed 4. Order picked and packed Total Order Cycle with Variability 2. Order entry and processing Frequency: 1 2 3 1. Order preparation and transmittal Frequency: 1 2 3 3. Order picking or production Frequency: 1 9 Frequency: TOTAL 3.5 days 8 20 days 5. Transportation Frequency: 1 3 5 6. Customer receiving Frequency: .5 1 1.5 The Path of a Customer’s Order Warehouse withdrawal Inventory file Production schedule Check credit Inventory available Ship customer order Customer delivery Order transmittal Customer order Enter customer order Invoice Back order Production Transportation scheduling Shipping documentation Process order Supplier Retailer Distributor Manufacturer Information-based Supply Chain Flows Timely, accurate information flow Supplier Manufacturer Distributor Retailer Smooth, continual product flow matched to demand Definition of EDI Interorganizational exchange of business documentation in
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