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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.
BULLWHIP EFFECT
the capacity of order will limited the store
only increase raw material cost
the possibly of lost sales is high
KEY ISSUES
Supply Chain integration
:
Sharing of info and efficient use of the info for coordinating business process to deliver a superior value to the customers
Product design
:
Concern with the design of the product and its impact on the total cost of the product
Inventory control
:
Concern with the levels of the inventory to be held at the various points in supply chain
Distribution strategy
:
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
Supply Contract
:
Seeks for good relationship between supplier and buyers
DRIVERS OF RISK IN SUPPLY REQUIREMENT
Delays
Inflexibility of supply sources
System
Extensive system networking
Disruption
Natural Disaster
Forecast
Info distortation
DECISION LEVEL
Tactical level
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.
Strategic level
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.
Operation level
Concern day to day management activities such as scheduling/routing, lead time quotations and vehicle loading.