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Supply Chain (Five Stages (Distributors (transport prod. to retailer…

- - - - Decisions - (eg. made at a product fmaily level)
      - Time frame (eg. 3 to 8 months)
      - Goal -minimise (eg. operational cost while observing constraints)
    - - Subcontracting
      - Inventory
      - Production
      - Stockouts (removal of inventory)
      - Levels of capacity
      - Pricing
    - - Workforce
      - Overtime
      - Production rate
      - Machine capacity level
      - Subcontracting
      - Backlog
      - Inventory on hand
- - - - Min (Quantity shipped from plant site i to customer j) x (cost of producing and shipping one unit from factory i to market j) ] + Sum of [(annual fixed cost of keeping factory i open ) x (1 or 0 depending on whether the plant is open or closed)]
    - - shipped amount <= capacity of plant
      - shipped amount = annual demand
- - - - due to mismatch between supply and demand
      - impacts
        
        material flow time
        
        throughput
        
        cost (efficiency) and responsiveness
        
        Little's Law
        
        Inventory (I) = Flow time (T) x Throughput (D)
    - - role in compet. strat.
        
        economies of scale (efficiency priority)
        
        "proportionate saving in costs gained by an increased level of production"
        
        large no. of smaller facilities (responsiveness priority)
      - role in supply chain
        
        the 'where' of the supply chain
        
        manufacturing/storage (warehouses
      - capacity
        
        proximity to customers
        
        manufacturing methodology
        
        flexibility vs efficiency
        
        location
        
        centralisation (efficiency) vs. decentralisation (responsiveness)
        
        warehouse metholdogy
        
        product focused vs. process focused
        
        overall trade-off
        
        responsiveness vs. efficiency
- - - - design options
        
        impact on customer service
        
        product availability
        
        customer experience
        
        product variety
        
        order visibility
        
        response time
        
        returnability
        
        cost to provide this level of service
      - performance evaluated on
        
        cost of meeting customer needs
        
        customer needs that are met
    - - distributor/warehouse
      - retailer
      - manufacturer
    - - carrier delivery
        
        factory to retailer (warehouse storage) to customer
      - last mile delievery
      - direct shipping
        
        manufacture to customer
      - customer pick up