Q 1 What is supply chain management ?

In commerce, supply chain management (SCM), the management of the flow

of goods and services,[2] between businesses and locations, and includes the movement and storage
of raw materials, of work-in-process inventory, and of finished goods as well as end to end order
fulfillment from point of origin to point of consumption. Interconnected, interrelated or interlinked
networks, channels and node businesses combine in the provision of products and services required
by end customers in a supply chain.[3]
Supply-chain management has been defined as the "design, planning, execution, control, and
monitoring of supply-chain activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring
performance globally".[4][5] SCM practice draws heavily on industrial engineering, systems
engineering, operations management, logistics, procurement, information technology and marketing,
[6]
 and strives for an integrated, multidisciplinary, multimethod approach. [7] Marketing channels play an
important role in supply-chain management. [6] Current[when?] research in supply-chain management is
concerned with topics related to sustainability and risk management,[8] among others. An important
concept discussed in SCM is supply chain resilience. Some suggest that the “people dimension” of
SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent
management are topics that have, so far, been underrepresented on the research agenda. [9] Supply
chain management (SCM) is the broad range of activities required to plan, control and execute a
product's flow from materials to production to distribution in the most economical way possible. SCM
encompasses the integrated planning and execution of processes required to optimize the flow of
materials, information and capital in functions that broadly include demand planning, sourcing,
production, inventory management and logistics -- or storage and transportation. [10]
Although it has the same goals as supply chain engineering, supply chain management is focused
on a more traditional management and business based approach, whereas supply chain engineering
is focused on a mathematical model based one.[11]

what are its objectives and scope ?

OBJECTIVES:

Reduce Operating Expenses

Supply chain management lays emphasis on bringing down the operational

expenses of a business. It reduces all types of business expenses like the
cost of purchase, production and delivery by providing a proper supply
chain. Holding period of both raw materials and finished goods is reduced
by facilitating a smooth flow of raw materials in between the supplier and a
company and movement of finished products between company and
customers. This avoids losses and minimizes the overall operating cost of
business.

Enhance Customer Satisfaction

Boosting the overall customer experience with business is another major

role by process of supply chain management. Proper analysis of customer
analysis is done before formulating any production strategy which leads to
production of right product. It keeps an eye on all activities within the
organization and checks the quality of products to ensure whether they
meet desired standards or not. Providing right quality of products at right
price enables in providing better satisfaction to c Improve Distribution
Channel

Supply chain management provides an efficient supply chain to business

which accelerates the whole process of distribution. Proper coordination in
between various transportation channel and warehouses is achieved for
facilitating faster movement of goods. This way the whole distribution
system is enhanced which enables in delivering product in right time and at
right location.

Strengthen Financial Position

It strengthen financial status of business by attaining better efficiency in its

process. Supply chain manager prevents any shortage of materials and
focuses on cutting any excessive costs. Any chance of funds blockage in
inventories is avoided by facilitating a speedy movement of goods.
Optimum funds are always maintained by managers within the business
which leads to strengthen the financial status. 

Regulate Proper Inventory

Maintaince of proper inventory is must for continued operations of business.

All inventories such as raw materials, spare parts and finished product are
properly recorded by managers for maintaining a right stock always. Any
situations like under stocking or over stocking is avoided that leads to
smooth functioning of business organization. 

Promotes Better Coordination

Supply chain management aims at establishing a better coordination among

all stakeholders of business. Proper channel is developed for easy
communication of employees, customers and suppliers with organization.
Manager can easily direct their employees and employees can also contact
their supervisors via the established channel in case of any problem erupts.
It promotes exchange of information among all parties and assist in bringing
proper coordination within the organization.

ustomers.

SCOPE:

Minimises Operating Cost

Supply chain management focuses on reducing the overall operating cost of
the organisation. It aims at bringing efficiency and raising the profitability of
organisations. By developing a proper chain it brings down the purchasing
cost, production cost and delivery cost. It enables smooth flow of raw
materials from the supplier to an organisation which reduces the holding
period of materials with the supplier and avoids any losses due to delay in
production. Similarly, companies are not required to hold on expensive
inventories for a longer time and distribute quickly through the supply chain.

Boosts Customer Service

Supply chain management helps in providing better service to customers.

All production strategies are framed in accordance with requirements of
customers to manufacture right product.  It properly anticipates the
demands of customers before initiating the production. Supply managers
monitor all operations of business and ensure that quality products are
produced using best combination of resources. Right product available to
right cost provide better satisfaction to customers. This will boost their
confidence level in company’s products.

Enhance Financial Position

Management of supply chain has an effective role on the financial position

of business. It improves the efficiency of the organisation, cut down the
excessive cost and avoids any shortage. Supply chain manager bring down
the cost by reducing the use of fixed assets like plants, transportation
vehicles, warehouses etc. Proper supply chain results in speedy flow of
products which minimises the blockage of funds in inventories. It ensures
that optimum funds are always available which helps in improving financial
position.

Manages Distribution

Distribution of products at the right time and the right location is a complex
task for every organisation. Supply chain management accelerated the
overall distribution system of an organisation. It coordinates with various
transportation channels and warehouses for attaining faster movement of
goods. Supply chain managers ensure that all products get delivered at the
right location within the time limit. By developing a proper network for
movement of goods it has to ease the whole distribution system.

Bring Coordination Among Partners

Proper coordination among all partners of business increase productivity

and profitability. It develops a proper channel through which employees,
supplier and customers can easily interact with business. Managers can
easily control the activities of their subordinates by communicating them all
the required information.

Employees in case of any problem or error can contact their supervisors.

Customers can also access their brands for any information through self-
portals which are developed as a part of the customer support system. This
enables a better exchange of information and brings coordination among
partners.

Inventory Management

Maintaining an optimum inventory is a must for uninterrupted operation of

every business. It keeps record of all inventories that is raw materials, spare
parts and finished goods. Supply chain managers ensure that the proper
amount of inventory is always maintained within the organisation. They
work towards avoiding situations like understocking or overstocking. Supply
chain managers frame proper strategies for procuring, producing and
maintaining all inventories as per requirements.

Supplier Management

Supply chain management works on strengthening the relationships

between business and suppliers. It tracks and records every interactions or
transaction with the suppliers. Proper supply chain enables timely
procurement of all required raw materials from suppliers. It develops a
proper network through which suppliers and business can easily interact.
Supply chain management solutions provide a self-service portal through
which suppliers can contact the company in case of any issues or problems.

Q2 (1) WHAT DO YOU UNDERSTAND BY BULLWHIP EFFECT?

The system which connects all the elements between the producer and the
consumer is called the supply chain. This definition of the supply chain
shows its complexity, dynamics and uncertainty. Successful operation of
supply chains requires the best possible coordination of its elements, which
obviously indicates the utmost importance of the information flow along
them. The operation of supply chains on the whole has to be more
successful than the operation of their individual elements. It should be noted
that such a complex process may give rise to a series of problems,
unwanted events, as well as substantial reduction in profits and the level of
service. One of such unwanted phenomena which may occur in the supply
chain is the "bullwhip effect". This is a possible increase in the diversity, of
orders which occurs when we move along the elements of the supply chain
(from the customers' orders to the producers' orders). The work analyses
the processes within the supply chains and the occurrence of the bullwhip
effect. The main causes of the bullwhip effect that we encounter daily in the
supply chains have been clearly defined. The paper also presents the main
negative consequences of such a disturbance within the supply chains, and
provides possible solutions for avoiding the bullwhip effect.

Predicting of demand is the significant tool in order the production planning

and provisions, managing the surface or creating levels of personalized
services. Predicting demand by many technologies is relying on earlier data
and their importance is setting up from patterns utilized heretofore earlier of
demand for near future. Of values predicted with regard to high
responsiveness for of the ones most current, this approach is obtaining in
general high (low) values of demand predicted in accordance to periods
high (low) of demand. It is being transferred by demand of clients to
wholesalers, distributors or producers in the form of the retail order which is
current demand for partners of the chain of supplies of the higher mark at
the same time. Forecasts of demand are rarely in practice when thorough
and what's more they are still refer to the poor quality higher marks in the
chain of supplies. In the majority of chains of supplies, individual
participants in the chain are trying to rationalize sizes of one's orders in
accordance to economic decisions, what the distortion of real demand of
clients is being created, through as well as bad redirection of demand at
members of the chain of supplies from upper of its levels. Promotions and
price hesitation also have influence for distorting demand.

(2) EXPLAIN THE RIPPLE EFFECT IN A SUPPLY CHAIN MANAGEMENT

A ripple effect occurs when an initial disturbance to a system propagates

outward to disturb an increasingly larger portion of the system, like ripples
expanding across the water when an object is dropped into it.

The ripple effect is often used colloquially to mean

a multiplier in macroeconomics. For example, an individual's reduction in
spending reduces the incomes of others and their ability to spend.[1]

In sociology, the ripple effect can be observed in how social interactions can
affect situations not directly related to the initial interaction,[2]
[page needed] and in charitable activities where information can be
disseminated and passed from community to community to broaden its
impact.[3]

The concept has been applied in computer science within the field

of software metrics as a complexity measure

Q3 EXPLAIN GREEN SUPPLY CHAIN MANAGEMENT ?

Green supply chain management

The term 'Green supply chain management' (GSCM) refers to the concept
of integrating sustainable environmental processes into the traditional
supply chain. This can include processes such as product design, material
sourcing and selection, manufacturing and production, operation and end-
of-life management.

Instead of simply attempting to mitigate the environmental impact of the

supply chain, GSCM involves driving value creation throughout the supply
chain organisations to reduce total environmental impact.
While the specific goal of GSCM is often the reduction of CO2 emissions,
other tangible benefits for an organisation include; greater efficiency of
assets, less waste production, greater innovation, reduction of production
costs, reuse of raw materials, increased profitability, perception of added
value to the client base, and so on.

Integral to the success of GSCM is the approach taken by each party to

their upstream and downstream partners in the supply chain. A much
greater degree of collaboration, transparency and integration of supply
chain processes and systems is required for the initiative to be effective.

ASSIGNMENT 2
WHAT IS MANUFACTURING FLOW SYSTEM?

Manufacturing material flow is the movement of components, raw materials, and

other inventory through the processing cycle to create a finished product and
deliver it to the consumer.
Material flow is arguably the most important function in a manufacturing company
because it addresses the process of creating products from materials, and those
products and their sale are necessary for the financial viability of the company.

EXPLAIN WORK FLOW AUTOMATION IN DETAIL

Workflow Automation refers to the design, execution, and automation

of processes based on workflow rules where human tasks, data or files
are routed between people or systems based on pre-defined business
rules.

Why Workflow Automation Is Used

By automating workflows, especially those processes that are primarily

handled manually by employees, significant improvements can be made
in:

Efficiency

Productivity

Accuracy

Audibility
Accountability

Job Satisfaction

How to Build an Automated Workflow

Using a drag and drop interface to add and arrange tasks, automated
workflows can be planned and designed visually to either simulate or
improve upon existing processes. In most cases, the process is
illustrated in a static format and reviewed by all stakeholders for
accuracy. Once the static design is finalized, work begins on designing
the actual process including forms, tasks, recipients, alerts/notifications,
etc. This is done using workflow automation software that includes pre-
built tasks that can be arranged and connected as needed.

EXPLAIN MATERIAL HANDLING SYSTEM

Home Learning Center Fundamentals Material Handling

Material Handling

Overview

Material handling is the movement, protection, storage and control of

materials and products throughout manufacturing, warehousing,
distribution, consumption and disposal. As a process, material handling
incorporates a wide range of manual, semi-automated and automated
equipment and systems that support logistics and make the supply chain
work. Their application helps with:

Forecasting

Resource allocation

Production planning

Flow and process management

Inventory management and control

Customer delivery

After-sales support and service

A company’s material handling system and processes are put in place to

improve customer service, reduce inventory, shorten delivery time, and
lower overall handling costs in manufacturing, distribution and
transportation.

WHAT ARE THE FACTORS AND PRINCILES FOR STRATEGIC

SELECTION AND DECISION OF MATERIAL HANDLING
EQUIPMENT SYSTEM
1. PROPERTIES OF THE MATERIAL
Whether it is solid, liquid or gas, and in what size, shape and
weight it is to be moved, are important considerations and can
already lead to a preliminary elimination from the range of
available equipment under review. Similarly, if the material is
fragile, corrosive or toxic this will imply that certain handling
methods and containers will be preferable to others.

2. LAYOUT AND CHARACTERISTICS OF THE

BUILDING
Another restricting factor is the availability of space for handling.
A low-level ceiling may preclude the use of hoists or cranes, and
the presence of supporting columns in awkward places can limit
the size of the material-handling equipment. If the building is
multi-storied, chutes or ramps for industrial trucks may be used.
The layout itself will indicate the type of production operation
(continuous, intermittent, fixed position or group) and can indicate
some items of equipment that will be more suitable than others.
Floor capacity also helps in selecting the best material handling
equipment.
3. PRODUCTION FLOW
If the flow is fairly constant between two fixed positions that are
not likely to change, fixed equipment such as conveyors or chutes
can be successfully used. If, on the other hand, the flow is not
constant and the direction changes occasionally from one point to
another because several products are being produced
simultaneously, moving equipment such as trucks would be
preferable.

4. COST CONSIDERATIONS
This is one of the most important considerations. The above
factors can help to narrow the range of suitable equipment, while
costing can help in making a final decision. Several cost elements
need to be taken into consideration when comparisons are made
between various items of equipment that are all capable of
handling the same load. Initial investment and operating and
maintenance costs are the major cost to be considered. By
calculating and comparing the total cost for each of the items of
equipment under consideration, a more rational decision can be
reached on the most appropriate choice.
5. NATURE OF OPERATIONS
The selection of equipment also depends on the nature of
operations like whether handling is temporary or permanent,
whether the flow is continuous or intermittent and material flow
pattern-vertical or horizontal.

6. ENGINEERING FACTORS
The selection of equipment also depends on engineering factors
like door and ceiling dimensions, floor space, floor conditions,
and structural strength.

7. EQUIPMENT RELIABILITY
The reliability of the equipment and supplier reputation and the
after-sale service also plays an important role in selecting material
handling equipment.

Q3 WHAT IS WAREHOUSING ? WHAT ARE THE

STRATEGY FOR WHAREHOUSING?

Warehousing is the process of storing physical goods before they are

sold or further distributed in a dedicated warehouse or storage
facility. Warehouses safely and securely store products in an
 organized way to track where items are located, when they arrived,
how long they have been there, and the quantity on hand.

For small or new businesses, warehousing inventory may be done

from home until they outgrow the space. At that point, a business
will have to rent storage space, lease a warehouse, or outsource
logistics to a third-party and store inventory in their warehousing
facilities.

In ecommerce, products are stored until an order is placed online, at

which point the order is shipped directly to the consumer from the
facility in which it was stored. In traditional retail, inventory may be
temporarily stored in a warehouse before it’s shipped to a brick and
mortar store.

1. Use Sales Forecasts

One of the most impactful warehousing strategies to include in your
planning is to use sales data to coordinate your team. Look at both past
and future projections to get a sense of how many orders will come in at
any given time.
This allows you to schedule your employees more efficiently throughout
the week. Doing this in advance of each quarter gives you time to see
potential setbacks before they happen and formulate a plan. If you have
a warehouse with heavy volume, this strategy is a must to keep your
team on track and ready to respond to potential problems.
2. Estimate Your Expenses
It’s possible to increase your bottom line by simply reducing expenses.
But without taking a long, hard look at what you need month-to-month,
you won’t be able to be proactive about your warehousing strategies.
For example, if past sales activity shows there’s a lull in dock activity the
last week of every month, this is an opportunity to reduce costs in labor
and equipment.
3. Automate
Automation is one of the best warehousing strategies you can use to
make your team more efficient. The type of automation you use is based
on where you need operations or analytics support to make sure the
information you’re acting from is accurate.
Bad data entry and reporting waste companies time and money each
year. Make sure the technology you choose includes the features that
make sense for the needs of your day-to-day operations.
Too much technology can actually be a distraction for your team. Find
that balance between state of the art features and simplicity so your
team makes an easy transition into using the new system.
4. Choose the Right Location
Labor is the driving force of many warehouses. Make sure you choose a
location that gives you access to the best available talent for your
warehousing needs.
It’s unlikely that hourly staff will commute across long distances for jobs
they can get closer to home. A competitive employer finds a location in
reasonable proximity to its workforce when feasible but not directly in the
area of other businesses that might take away your talent.
5. Evict Old Inventory
Unless you’re selling long term storage space, inventory that doesn’t sell
is costing you money. Space is a premium in any warehouse and should
be treated like gold.
Get rid of inventory that takes too long to move or doesn’t move at all.
The space the inventory takes up is an opportunity for additional profit
for your company.

6. Centralizing Warehouses
A popular warehousing strategy, this is a change from the smaller,
regional approach to warehousing. Instead of many small decentralized
warehouses, companies are seeing the value of a larger facility that
serves the same customer base. Why? Well, if you consider what goes
into warehouse facilities — transportation, staffing, security, climate
control, lighting, etc. — it is often less expensive to maintain a single
large facility than many smaller ones.
The result of this warehousing strategy is more affordable warehousing.
In turn, this means more cost-efficient logistics for customers. We
operate one warehouse, centrally located for your convenience.
7. Outsourcing To Third Parties
We’re a third-party logistics provider, so we understand this warehousing
strategy particularly well! Companies who had previously warehoused
their own inventory are outsourcing to reputable companies like our own,
as a lower-cost alternative that doesn’t sacrifice on quality.
Ours is a public warehouse, attractive to companies wanting to
outsource by renting space for their needs, like emergency storage or
temporary storage. It’s also great for smaller businesses with less
inventory, or companies that need seasonal warehousing.
When organizations outsource to third parties like us, other logistics
services follow. These include freight transport, rail shipping and
receiving, container delivery and, import export logistics. This works well
for clients who want full-service logistics on an as-needed basis at an
affordable rate.
8. Electronic Monitoring Systems
Gone are the days of relying on security patrols to ensure that
warehoused inventory is safe. While security staff continues to play an
important role in warehousing, today’s warehousing strategies focus on
technological solutions.
This type of system deters theft, internal and external. It reduces the
number of people who need to have access to assets, while also
protecting them from damage. An electronic monitoring system is ideal
for theft prevention, but it also works well to monitor for fire, flooding, and
other natural disasters.
This means two things for you as the customer. First, you can rest
assured that your products are safe in our public warehouse. Second,
there’s no need to pay more for security staff nor to pay artificially
inflated prices thanks to the loss of products. Labor costs will always add
to overall expenses, and in this case, it’s a cost easily controlled through
tech. We provide secure, safe warehousing at an affordable price.
9. Lean Warehouse Operations
Overall, all of these warehousing strategies point to one main practice,
which is lean operations. By optimizing the resources at our fingertips,
we reduce the time it takes to:
 handle inventory
 coordinate for effective supply chain management
 look for stock,
 load and unload onto transport
We manage customer specifications and needs so that we can reduce
the time and expense required to get your products where they need to
go. We base everything we do on a lean, flexible model and we can
adapt to your needs, responding quickly with an affordable solution. Our
aim is always efficiency.
Q4 (A) WHAT DO YOU UNDERSTAND BY SPACE
UTILISATION?
 The basic definition of space utilization is your building’s
occupancy divided by its capacity. This gives you a percentage of
how much of the space in your office that you’re using versus
how much is sitting idle.

Where many businesses struggle is determining the proper space

utilization. How much can we divide up our space, how much
space do we need to give each individual, and how will this
impact our productivity? These are the questions that office
managers ask themselves when thinking about office space
utilization.

There is something called JLL’s 3-30-300 rule. This means that

for every square foot of space, the business pays 3 dollars on
utilities, $30 on rent, and $300 on the payroll. Of course, these
are not concrete numbers, but you can use this as a platform to
determine how much you spend per square foot.

(B) WHAT ARE THE STRATEGIES TO IMPROVE SPACE

UTILISATION

The Starting Point

Quantify your storage profile in terms of capacity and utilization. Thoroughly understand
the flow and utilization of the current layout, including rack configuration, slotting/pick
philosophy, receiving, putaway, replenishment, inventory management and packing and
shipping. Include seasonal peak trends and a thorough volume analysis of inbound and
outbound product flow.

Use Your Vertical Space

Look up and make sure you’re using all the vertical space available. Investigate storage
media to take advantage of your clear span height. How much cubic feet of vertical
space is not being used? Be sure to know how your design might impact your sprinkler
design and fire code.

Analyze Your Department Space

Identify functions that do not require high ceilings in areas where lower stacking heights
are dictated by the clear height. We often see unused overhead space where large
departments like packing and shipping are performed.

Consolidate Locations

If you have multiple locations for storing the same item, consider combining them to
create better warehouse space utilization. This can be done during the putaway process
and as a standalone function.

Right-Size Your Slots

Match the size and sales of the item to the right sized pick slot to maximize the
utilization of the picking slot cube. Having various sizes of picking slots can facilitate this
process. The same logic applies to locations where you store reserve or overstocks. In
forward picking, keep 4-7 days of sales by SKU to reduce replenishment.

Use Off-Site Location for Overstock

If you store a large quantity of excess inventory for a few items, consider some type of
offsite storage for the excess, thus freeing up space for supporting the fulfillment
operation.

Drop Shipping As An Option

If you store and ship large items, consider utilizing some form of drop shipping to reduce
your in-house inventory and costs.

Aisle Widths

How wide are your warehouse aisles? Try to design the minimum width required to
match the material handling equipment used without compromising operating efficiency.

Cross Docking
If possible, consider cross docking large releases of back orders or single-line orders to
reduce the amount of inventory requiring storage locations.

Best Utilization of Your Building

Make sure you study your building to determine how it can best be utilized from a space
standpoint. Consider clear stacking height, column spacing, building impediments and
overall process flow. Try to match vertical space needs with the building characteristics.

Depth of Storage

Review not only the effective use of the height of locations, but also the depth of
storage; for example, consider double-depth racking.

Supply Storage

If you have to store supplies or packing materials, try to manage the inventory to avoid
overstocks. See if your corrugated supplier can keep some inventory at its site for you,
and take delivery every few days.

Door Use

If you have separate shipping and receiving docks, consider combining them to save
space.

Mezzanine Installation

If your building layout permits, consider the use of a mezzanine to house functions that
do not require high-bay storage. These can be expensive and are fairly permanent, but
will maximize warehouse space utilization.

Keep It Simple

Where you have a choice between a complex and simple solution, choose the simple
solution. For example, consider adding pallet rack tiers upward. An example of
complexity could be moving racking to narrow aisles. Is there a return on investment for
your solutions?

Warehouse space often represents 15% to 20% of the cost per order. Moving to new
space is expensive and takes a lot of time. Make sure you have assigned someone
responsible for your ongoing planning and warehouse space utilization analysis
process.