CHAPTER 6: SUPPLY REQUIREMENT (KEY ISSUES IN LOGISTICS (configuration of…
CHAPTER 6: SUPPLY REQUIREMENT
KEY ISSUES IN LOGISTICS
configuration of distribution network
deals with design of a distribution network to serve a specific market - will determine the level of service available to the customers
concerned with level of inventory to be held at various points in the supply chain.
supply chain integration & strategic partnering
concern with the complex issue of strategic inter organizational partnership for achieving competitive advantage
concern with the distribution of the firm's products available strategy such as classical distribution strategy or direct shipping
concern with the design of product &its impact on total cost of the product.
KEY DRIVERS OF RISK IN SUPPLY CHAIN
natural disaster, labor dispute, supplier bankruptcy, war/ terrosim
high capacity utilizationa supply source and inflexibility of supply source
inaccurate forecast due to long lead times, seasonality, product variety, short life cycle,information distortion
is a distribution channel phenomenon in which forecasts yield supply chain inefficiency. it refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain
it is not good in logistic. because of manufacture will overproduce product, wholesaler stockpile extra products, local store holds extra products and delays next order. all of this effect will costs on company loss.