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SUPPLY REQUIREMENT (Briefly explain the key issues in supple chain?…
SUPPLY REQUIREMENT
Briefly explain the key issues in supple chain?
- Configuration of distribution network This issue deals with the design of a distribution network to serve a specific market.
-This will consist of a set of warehouses and retail outlets with the manufacturing plant & supply resources, based on consideration of location & capacity of each of these elements.-This will also determine the level of service available to the customers. :explode:
- Inventory control
- This is concerned with the levels of inventory to be held at various points in the supply chain. As inventory represents costs, the sensible approach is to hold as low an inventory as possible but businesses are forced to hold inventories as a buffer to counter the affects of an uncertain demand. :explode:
- Product design
- Concerned with the design of the product and it’s impact on total cost of the product.
- It is possible that the design determines the strategies to be followed regarding inventory or transportation. : :explode:
- Customer value
- The key issue is the definition of customer value in an age of increasing consumer power.
:explode:
- Supply contracts
- Relationships between suppliers and buyers are established by means of supply contracts that specific pricing and volume discounts, delivery lead times, quality, returns, and so forth.
:explode:
- Distribution strategy
- Concerned with the distribution of the firm’s products.
- There are several strategies available such as the classical distribution strategy or direct shipping.
:explode:
- Information technology and decision support system
- Information technology is a critical enabler of effective supply chain management.
- Much of the current interest in supply chain management is motivated by the opportunities that appeared due to the abundance of data and the savings that can be achieved by sophisticated analysis of these data.
- Proper analysis and data processing is depend on many other factors and that may be a hurdle in SCM.
:explode:
- Supply chain integration and strategy partnering
- This is about sharing of information and efficient use of the information for coordinating business processes to deliver a superior value to the customers.
:explode:
Discuss the drivers of risk in supply requirement?
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Forecast
Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycle : :fire:
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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. It is bad in logistic. For example the manufacturer overproduces coffee, wholesaler stockpiles extra coffee and local store holds extra coffee and delays next order. : :forbidden: