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DMFD 3513 Chapter-5 Supply Chain Management

DMFD 3513 Chapter-5 Supply Chain Management



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Published by Haery Sihombing

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Published by: Haery Sihombing on Jul 23, 2008
Copyright:Attribution Non-commercial


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Supply Chain Management Supply Chain Management 
Ir. HaeryIr. HaerySihombingSihombing/IP/IP
PensyarahFakultiKejuruteraanPembuatanUniversitiTeknologiMalaysia Melaka
Lecture OutlineLecture Outline
Supply Chain Management
Information Technology: A Supply Chain Enabler
Supply Chain Integration
Supply Chain Management Software
Measuring Supply Chain Performance
Global Supply Chain
Supply ChainSupply Chain
 All facilities, functions, activities, All facilities, functions, activities,associated with flow and transformationassociated with flow and transformationof goods and services from raw materialsof goods and services from raw materialsto customer, as well as the associatedto customer, as well as the associatedinformation flowsinformation flows
 An integrated group of processes to An integrated group of processes tosource,source,make,make,andanddeliver deliver productsproducts
Supply Chain IllustrationSupply Chain Illustration
Supply Chain ProcessesSupply Chain ProcessesSupply Chain for Service ProvidersSupply Chain for Service Providers
More difficult than manufacturingMore difficult than manufacturing
Does not focus on the flow of physicalDoes not focus on the flow of physicalgoodsgoods
Focuses on human resources and supportFocuses on human resources and supportservicesservices
More compact and less extendedMore compact and less extended
 Value vs. Supply Chain Value vs. Supply Chain
 Value chain Value chain
every step from raw materials to theeventual end user
ultimate goal is delivery of maximum valueto the end user
Supply chainSupply chain
activities that get raw materials andsubassemblies into manufacturing operation
Terms are used interchangeablyTerms are used interchangeably
Supply Chain Management (SCM)
Managing flow of information through supplyManaging flow of information through supplychain in order to attain the level of chain in order to attain the level of synchronization that will make it moresynchronization that will make it moreresponsive to customer needs while loweringresponsive to customer needs while loweringcostscosts
Keys to effective SCMKeys to effective SCM
Supply Chain UncertaintySupply Chain Uncertainty
One goal in SCM:
respond to uncertainty incustomer demandwithout creating costlyexcess inventory
Negative effects of uncertainty
incomplete orders
insurance against supplychain uncertainty
Factors that contributeto uncertainty
inaccurate demandforecasting
long variable lead times
late deliveries
incomplete shipments
product changes batchordering
price fluctuations anddiscounts
inflated orders
Bullwhip EffectBullwhip Effect
Occurs when slight demand variability isOccurs when slight demand variability ismagnified as information moves back upstreammagnified as information moves back upstream

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