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Supply Chain Efficiency (Waste & Delays (Batch production ('Batch…

- - - - Womack & Jones, 2003
- - - - Blanchard, 2010
      - Demand fluctuations magnify through supply chain
        
        Management constraints
        
        Cannot be eliminated
      - May occur at any point in supply chain
      - Reduction practices
        
        Reduce number of stages in supply chain
        
        Share demand information across supply chain
        
        Generate smaller, more frequent replenishment orders
        
        Reducing lead times
        
        Limit promotions that create demand surges
      - CAUSES
        
        Lead times between supplier tiers
        
        Under or over-reaction to demand changes
        
        Demand uncertainty across supply chain
        
        COMPLICATIONS :warning:
        
        Process characteristics make co-ordination difficult
        
        Limited levels of collaboration between tiers
        
        Conflicts of interest
        
        Difficulties deciding who keeps stock & where
- - - - Wide or narrow
    - - Capacity at each tier
        
        Decreasing economic scale; increasing output variety
        
        Sell surplaces?
        
        Outsource shortages?
        
        Seasonal adjustment
      - Imbalance almost unavoidable
    - - Upstream
        
        Buy suppliers
        
        Security of supply
        
        Reliability of supply
        
        Restriction of supply
        
        Control over raw material costs
      - Downstream
        
        Buy distributors or customers
        
        Control customers
        
        Business guarantee
        
        Access to data
        
        Customer knowledge