Professional Documents
Culture Documents
Supply-Chain Management
Bullwhip Effect
Outsourcing
Value Density
Mass Customization
2
WHAT IS A SUPPLY-CHAIN?
4
FORMULAS FOR MEASURING SUPPLY-CHAIN
PERFORMANCE
6
EXAMPLE OF MEASURING SUPPLY-CHAIN
PERFORMANCE (CONTINUED)
Cost of goods sold
Inventory turnover =
Average aggregate inventory value
= $160/$35
= 4.57
7
BULLWHIP EFFECT
The magnification of variability in orders in the supply-
chain
Quantity
Quantity
Order
Order
Order
Time Time Time
Types of SC’s
Efficient SC’s
Risk-Hedging SC’s
Responsive SC’s
Agile SC’s
9
HAU LEE’S SC UNCERTAINTY
FRAMEWORK
Demand Uncertainty
Low (Functional High (Innovative
products) products)
10
WHAT IS OUTSOURCING?
11
REASONS TO OUTSOURCE
Organizationally-driven
Improvement-driven
Financially-driven
Revenue-driven
Cost-driven
Employee-driven
12
VALUE DENSITY
13
MASS CUSTOMIZATION
14
Reference: Operations Management for
Competitive Advantage
By Chase, Jacobs & Aquilano, 10e