TUTORIAL SUPPLY REQUIREMENT (DRIVERS OF RISK IN SUPPLY REQUIREMENT ( …
TUTORIAL SUPPLY REQUIREMENT
KEY ISSUES IN SUPPLE CHAIN
Concern activities of firm at various level of decision making which are levels of operation level, tactical level, and strategic level. KEY ISSUES:
1) Configuration of distribution network:
-consist set of warehouse and retail outlet.
determined the level of services to the customers.
2) Inventory contro
focus on cost; produce as low cost of inventory as possible
detect the uncertainty demand
3) Supply chain integration and strategic partnering
Concern with the complex issues of strategic inter organization to get the competitive advantage.
Sharing the information and the efficient of it in order to deliver the superior value to the customers.
4) Distribution strategy:
-concerned with the distribution of the firm’s product.
Strategy available: 1) Classical distribution (produce product and the demand or order)
2) Direct shipping (get the demand and produce)
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6) Customer value:
-provide the best value according to the increasing of the customer buying power.
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WHAT IS BULLWHIP EFFECT
Distribution channel phenomenon in which forecast yield supply chain inefficiencies.
*lead to either inefficient production or excessive inventory
leads to a low utilization of the distribution channel.
DRIVERS OF RISK IN SUPPLY REQUIREMENT
i. Natural disaster
ii. Labor dispute
iii. Supplier bankruptcy
iv. War/ terrorism
i. High capacity utilization at supply source
ii. Inflexibility of supply source
i. Information infrastructure e-breakdown
ii. Extensive system networking
i. Inaccurate forecast due to long lead times, season, product variety, short life cycle
ii. Information distortion.