Supply chain operations (Making and Delivering)
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Transcript of Supply chain operations (Making and Delivering)
Supply Chain OperationsMAKING AND DELIVERING
SC Operations
Plan
Source
Make
Deleviry
Product Design (Make) Fewer parts, Simple Design, Modular Construction from generic sub-assemblies.
Supply chain Role: ◦ Flexible◦ Responsive◦ Efficient
Complicated Product Design
Simple Product Design
Product with high responsiveness and competitive cost
Manufacturing
Procurement
Design
Production Scheduling (Make) The Goal is to use available capacity (Equipment, labor, Facilities) in the most efficient and profitable manner.
High Utilization Rates
High levels of Customer Service
Low levels of inventory
Objectives of Production Scheduling
• Long production runs, • Centralized Manufacturing • Distribution Facilities
• Many short production runs• High inventory levels
• Short Production runs• JIT Delivery of raw materials
Scheduling a multi-product production facility
Determine the economic lot size for the
production runs of each product
Set the right sequence of production
runs for each product
Scheduling1
2
3 6
5
4 8
9
9
Run out time R= P/D
R= run out time P= number of units of product on hand D= product demand in units for a day or week
Facility Management (Make) All facility management decisions happen within the constraints set by decisions about facility locations.
Decisions in three areas :
1. The role each facility will play
2. How capacity is allocated in each facility
3. The allocation of suppliers and markets to each facility
Order Management (Deliver) Process of passing order information from customers back through the supply chain from retailers to distributors to service providers and producers
CustomerRetailers
Distributer
Service Provider
Producers
Four Rules of Efficient Order Management1. Enter the order Once and Only Once
◦ once—Capture the data electronically as close to its original source as possible and do not manually reenter the data as it moves through the supply chain.
2. Automate Order Routing◦ Manual intervention should be minimized for the routing and filling of routine orders.
3. Make order status Visible◦ Let customers track their orders through all the stages from entry of the order to
delivery of the products.
4. Use integrated Order management systems
Delivery Scheduling (Deliver) The delivery scheduling process works within the constraints set by transportation decisions.
Types of Delivery Scheduling 1. Direct Deliveries2. Milk Run Deliveries
1. The savings matrix technique2. The generalized assignment technique
Direct Deliveries
Location
Location
Milk Run Deliveries
Originated Location Location
Location
Location
Location
Location
Location
Location
OR
Delivery Sources1. Single product locations2. Distribution centers
Single product locations
Location
Location
Location
Customer
Distribution centers
Location
Location
Location
Center Customer
Crossdocking
Thanks