Please enable JavaScript.
Coggle requires JavaScript to display documents.
SUPPLY REQUIREMENT (The Key Issues in Supply Chain (:fire:Configuration of…
SUPPLY REQUIREMENT
-
-
Decision Level
:explode: Operational level
Concern day to day management activities such as scheduling/ routing, lead time quotations and vehicle loading
:explode:Tactical Level
Concern with purchasing and production functions, inventory policies and transportation strategies including the frequency with with customers are invited. The decision usually updated on an annual basis.
:explode: Strategic Level
Made with long term objectives and with long lasting effects. This include decision regarding location of various facilities, including the manufacture plant,distribution warehouses and the structure of the distribution channel.
Bullwhip Effect
:tada: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 than 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 thesupply chain.
:tada: It is bad in logistics as 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.