TUTORIAL SUPPLY REQUIREMENT (KEY ISSUES (Supply Chain integration: …
TUTORIAL SUPPLY REQUIREMENT
WHAT IS BULLWHIP EFFECT
The bullwhip effect explained about an excessive in the supply chain where the demand of product is more than the supply in every each flow of the supply chain network. Its only interrupt the smoothness of the supply chain process.
the capacity of order will limited the store
only increase raw material cost
the possibly of lost sales is high
Supply Chain integration
Sharing of info and efficient use of the info for coordinating business process to deliver a superior value to the customers
Concern with the design of the product and its impact on the total cost of the product
Concern with the levels of the inventory to be held at the various points in supply chain
Concern with the distribution of the firm's product
Configuration of distribution network
involve planning in designing the flow of distribution network to a specific market
Seeks for good relationship between supplier and buyers
DRIVERS OF RISK IN SUPPLY REQUIREMENT
Inflexibility of supply sources
Extensive system networking
Concern with purchasing and production function, inventory policies and transportation strategies including the frequency with customer are invited. The decision usually updated on an annual basis.
Usually this is made with long term objectives and with long lasting effects. This include decision regarding location of carious facilities, including the manufacture plant, distribution warehouses and the structure of the distribution channel.
Concern day to day management activities such as scheduling/routing, lead time quotations and vehicle loading.