TUTORIAL SUPPLY REQUIREMENT (Briefly explain the key issues in supple…
TUTORIAL SUPPLY REQUIREMENT
Briefly explain the key issues in supple chain?
Configuration of distribution
Entire chain of distribution intermediaries from the supplier to the consumer. A strong and efficient distribution network is one of the most important assets a manufacturer can have, and is the biggest deterrent that faces the new competitors.
Inventory control or stock control can be broadly defined as the activity of checking a shop’s stock
Supply chain integration and strategic partnering
An integrated collection of organizations that manage
information, product, and cash flows from a point of origin to a point of consumption with the goals of maximizing consumption satisfaction while minimizing the total costs of the organizations involved. The strategic supplier partnership identifies optimum practices that can facilitate supply chain process alignment and integration. In order to further expedite collaboration, it is necessary to implement the latest collaborative information systems that drive efficiency, performance, and quality throughout a supply chain
A plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers. Larger companies involved in making products will usually also put together a detailed production distribution strategy to guide its entry into its intended market.
The detailed specification of a manufactured item's parts and their relationship to the whole. A product design needs to take into account how the item will perform its intended functionality in an efficient, safe and reliable manner. The product also needs to be capable of being made economically and to be attractive to targeted consumers.
The difference between what a customer gets from a product, and what he or she has to give in order to get it.
An agreement by which a seller promises to supply all of the specified goods or services that a buyer needs over a certain time and at a fixed price, and the buyer agrees to purchase such goods or services exclusively from the seller during that time. In international markets a supply contract is often necessary in order to lock in discounted pricing and other benefits that the supplier is agreeing to provide to the client for a specific period of time. The terms of a supply contract often define everything from the means whereby the products are delivered, terms of payment, and any other aspect of the relationship that the two parties have determined to be necessary.
Information Technology and Decision Support System
A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions more easily. It is an "informational application" (to distinguish it from an "operational application" that collects the data in the course of normal business operation)
Discuss the drivers of risk in supply requirement?
High capacity utilization at supply source, Inflexibility of supply source
Natural disaster, labor dispute, supplier bankruptcy, war/terrorism
Information infrastructure breakdown, Extensive system networking
Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycle abd information distortion
What is bullwhip effect? Is it good or bad in logistics? Explain your answer.
The bullwhip effect can be explained as an occurrence detected by the supply chain where orders sent to the manufacturer and supplier create larger variance then the sales to the end customer. These irregular orders in the lower part of the supply chain develop to be more distinct higher up in the supply chain. This variance can interrupt the smoothness of the supply chain process as each link in the supply chain will over or underestimate the product demand resulting in exaggerated fluctuations. The bullwhip effect was named for the way the amplitude of a whip increases down its length. The further from the originating signal, the greater the distortion of the wave pattern. In a similar manner, forecast accuracy decreases as one moves upstream along the supply chain. For example, many consumer goods have fairly consistent consumption at retail. But this signal becomes more chaotic and unpredictable as you move away from consumer purchasing behavior. As a conclusion, bullwhip effect is bad to logistics.