Supply Chain Management

1.

Introduction:

Cultural heritage is closely linked to the world around us. It is not just an ornament that we
humans can put on. It's not just a color accent. This is why we are human. Without culture, there
would be no human beings. The term "culture" refers to customs, beliefs and a way of life that
ranges from the spiritual to the more material. It gives us meaning and a way to live our lives.
Human beings are the creators of culture, and at the same time it is what defines us as humans.
One of the most fundamental aspects of culture is the question of religion and its symbolism. It is
essential to recognize the importance of religious identity as well as to be aware of the current
efforts to move forward with regard to interreligious dialogue which is in fact intercultural
dialogue.

A distribution network is described as the movement of goods from a manufacturer or supplier to

the end user. The network is made up of warehouses, storage facilities and transportation systems
that facilitate the flow of goods until they are delivered to the end consumer. The process of
ensuring that the customer receives the item from the manufacturer is accomplished through
direct selling or by using a retail network.

Concept and Application

Distribution networks change over time as businesses grow and seek to connect with more
customers. That's why they should be designed in a way that allows for long-term optimization.
Determining the most efficient and effective distribution system and supply chain satisfaction of
customer demand is one factor. To meet the global demand of customers, it must be carried out
at affordable costs and with the required quality of service. This requires analysis and specific
supply chain management and planning.
Distribution networks are built by analyzing all key cost and service factors. Customer location
is one of the primary drivers of distribution and supply chain models. Companies must determine
the location of their customers in order to create an efficient distribution system that works
efficiently, with an affordable price and which will not have a significant impact on the cost of
the product for the consumer. The geographical location of the customer is a good basis for
logistics planning. As is the case with ‘Parampara’ location is of the essence to lower the costs
and time.

Another important factor is the frequency and quantity of orders. It is crucial for a business to
understand how often customers purchase a product as well as the volume of purchases
associated with the product. It helps to control the delivery of stocks. Transportation costs and
the type of transportation required are important factors in building the distribution model. Order
frequency and consumer locations help determine the best type of transportation needed, as well
as the cost associated with the modes of transportation and vehicles needed. Storage is an
additional factor in designing an efficient distribution system. The business must decide on the
best warehouse locations, sizes, accessibility and cost, to ensure that the best choice is made to
meet distribution needs and to ensure overall customer satisfaction.

Benefits of Deciding on a Distribution Network

The advantages of using existing distribution networks or setting up one up are (but aren't only):

1. Cost reduction
The process of setting up a new distribution center can be costly for some businesses and
manufacturers. Having a distribution system in place provides convenience and speed, and also
increases access to products (geographically) and removes the expense and difficulty associated
with the human resources, time and capital required.

2. More customer contact

A well-functioning distribution system enables customers to reach a wider audience as it

improves the speed with which products are delivered to the consumer. It also allows for
opportunities to reach different geographic regions.

Additional Resources

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 Disintermediation
 Economics of Production
 Operations Management
 Value Chain

Conclusion

Perishable foodstuffs represent a significant portion of the products that are transported daily
from suppliers to consumers. However, research on the design of distribution networks for
perishable goods is scarce. This study expanded the LMRP by focusing on the shelf life of the
product that is dispensed. The developed model determines the most optimal configuration as
well as managing inventory decisions for the network. Additionally, the model identifies a
balance between improving storage conditions, which is interpreted as higher inventory costs,
but longer life, and accepting lower inventory cost, but resulting in an article with a shorter time.
A sensitivity analysis of the key parameters is carried out to verify the model and the solution
method. In the future, it is recommended that the inventory control policy for perishables that
decrease in value over time be included in the DND model.
2.

Introduction

Safety stock is excess inventory held by an organization to help reduce the risk of being out of
stock or "out of stock" during manufacturing.

Safety stock maintenance is a proactive approach to inventory management that attempts to

establish a minimum amount of inventory to be kept as a buffer against increases in demand
(sales) or supply shortages. This contrasts with reactive approaches that trigger procurement
activities only when material demand is imminent. In most cases, the two approaches are used
together depending on a number of factors. For example, safety stock may be maintained only
for inexpensive or time-consuming items. Properly managing safety stock is as much about
keeping enough material available to meet demand as it is about reducing the amount of safety
stock to avoid excessive unused inventory. Using the tools available appropriately and
establishing reliable inventory workflows and policies can help your organization run smoothly
and efficiently.

Concept and Application

Although your organization is still in the response or recovery phase, it's never too early to start
thinking about the future. Given the complexity of the pandemic and the lack of a vaccine,
organizations should prepare for a sudden and unexpected increase in COVID-19 cases and
optimize PPE stock now. Here are some considerations:

Utilization

Guidelines for PPE use were changed during the first wave of COVID-19 shortages and resource
conservation was considered clinically acceptable. You should ask your nursing and infection
control departments about the reuse of designated single-use items. Disposable items that had
reusable options were one of the solutions to fill the shortage gaps. In addition to alleviating the
global shortage, reusable products provide a green alternative to disposables in raw materials,
manufacturing waste, transportation, packaging, and ultimately landfill reduction.
Financial approach

Supplies for seasonal use such as flu or hurricane season are needed for a set period. These
supplies were probably included in the budget and are consumed at the end of the season. They
may have been expensed in the normal course of business on the assumption that eventual use
will result in a reduction in expenses in the period following the season.

Building up a long-term (at least 90 days) emergency PPE stockpile for an unpredictable event
such as COVID-19 could require a significant investment. To defer expenses and financial
statement impact, create a perpetual inventory location for these supplies and carry the value of
the inventory as an asset. The only caveat is to estimate the total investment and work with your
CFO to ensure cash flow and asset accounts are reviewed and approved by finance.

Strategic Sourcing

The first tenant of the supply strategy is supply assurance. Neither price, nor quality, nor service
matter if the product is not available. Availability of supply, free from geopolitical influences or
unstable markets, should be the main conditional go/no-go requirement.

To understand risks, strategic options and contingency plans, assess supplier relationships and
contracts using PEST (political, economic, sociological and technological) strengths for critical
or target categories. Also identify potential market disruptors and develop early indicators and
action plans to mitigate supply shortages. We may not be able to identify all events like the
COVID-19 pandemic, but having contingency plans in place is a first step towards adapting your
supply chain agilely. Participate in a cloud-based control tower solution, such as the Vizient
Supply Chain Resilience solution, to gain greater visibility into your HCO's inventory, as well as
inventory from participating suppliers and manufacturers. Real-time inventory visibility is
essential to respond to a crisis or systemic supply disruptions in the future. Knowing who has
inventory available, in real time, provides the flexibility to locate and purchase available
products.
Inventory management

If the PPE items are already in your permanent inventory (warehouse or main store), the simple
solution would be to adjust your minimum and maximum quantities until you provide the desired
emergency stock levels. If sufficient storage space is not available, you will still need to
designate a secure overstock location at your facility. A more accurate solution would be to
construct the overstock space as a separate, perpetual asset inventory space that would essentially
be a redundant inventory location. To ensure proper stock rotation, use this separate location to
transfer stock to the warehouse or main store, then place replenishment orders in the redundant
emergency inventory location, thus avoiding stock expiration .

Conclusion

Safety stock maintenance is an essential part of being a retailer and a manufacturer. This will
help reduce the risk of out of stock, which leads to inefficiency, unhappy customers, and
ultimately lost sales and reduced profits. Before choosing the right formula for your safety stock,
you must first consider the quality and quantity of your data. As data is an essential element in
all these calculations, a solid and reliable data set to work from is essential. Otherwise, your
calculations could be inaccurate, causing more problems than they solve.

3a.

Introduction:

Aggregate planning is a method for developing an overall manufacturing plan that ensures
uninterrupted production in a facility. Aggregate planning is generally applied over a period of 3
to 18 months. Aggregate planning covers all production activities at a facility (or for larger
companies, across multiple facilities), not just individual production runs or the manufacture of
individual products. For this reason, global production planning helps manufacturers optimize
resource utilization despite significant variations in demand for individual products, which result
from changes in customer orders, supply chain dynamics and other elements.
Concept and Application

The role of Aggregate planning is to minimize operating costs by matching production demand
to production capacity. An overall plan specifies what materials and other resources are needed
and when they should be purchased to minimize costs. The ideal outcome of overall planning is
to maximize the productivity of an installation at the lowest possible cost to the manufacturer.

With the main objectives of minimizing costs and maximizing profits, the strategic objectives of
overall planning include:

Minimize Inventory Investment - It optimally balances efforts to minimize the cost of inventory
management and storage with efforts to ensure sufficient inventory to meet independent and
dependent demands through material resource planning.

Minimize labor demand and fluctuation - It uses data from demand forecasts and material
resource planning to calculate an optimal labor plan - a plan that balances the cost of
onboarding/layoffs due to fluctuating labor with the cost of worker downtime and/or overtime.

Maximize production rates while minimizing fluctuations - Aggregate planning software analyzes
production capacity against demand forecasts to maximize the overall production rate while
avoiding periods of idle capacity.

Maximize utilization of production facilities and equipment – Overall planning software

considers available production equipment and facilities and targets maximum utilization over the
overall planning period.

To achieve these goals, Aggregate planning software can use one of two approaches, or a
combination of both. The hunting approach attempts to match production capacity to demand.
With this approach, a manufacturer adjusts the supply and availability of resources to keep up
with fluctuations in customer orders (or make-to-stock). This approach allows a manufacturer to
minimize inventory levels and maximize resource utilization, but the manufacturer must deal
with the costs associated with capacity adjustments: onboarding and layoffs of labor or floor
space under.

Conclusion:
By fulfilling the strategic objectives of aggregate planning, a manufacturer can balance short-
and long-term production demands and optimize productivity and profits.

3b.

The ideal outcome of overall planning is to maximize the productivity of an installation at the
lowest possible cost to the manufacturer.

With the main objectives of minimizing costs and maximizing profits, the strategic objectives of
overall planning include for ‘Hercules’

Minimize Inventory Investment - The Tiles factory leader should store less inventory so as to
minimize the cost. For this correct forecast for the order should be available. This way
unnecessary inventory will not be lying around and not take much space which will in return
save the extra cost for purchasing the inventory.

Minimize labor demand and fluctuation – Data from demand forecasts and material resource
planning should be used to calculate an optimal labor plan - a plan that will balance the cost of
onboarding/layoffs due to fluctuating labor with the cost of worker downtime and/or overtime.
More labors lying idle simply adds to the cost. It is advisable to rather give overtime when
needed.

Maximize production rates while minimizing fluctuations - Proper analyzes of production

capacity against demand forecasts to maximize the overall production rate while avoiding
periods of idle capacity should be done. This way we can avoid fluctuations to an extent.

Maximize utilization of production facilities and equipment – Overall planning software

considers available production equipment and facilities and targets maximum utilization over the
overall planning period.