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Supply Chain Definitions y Basic Concepts
Supply Chain Definitions y Basic Concepts
Supply Chains:
Definitions & Basic Concepts
5. Component
3. Wholesalers
Manufacturers
4. Manufacturing &
Assembly Plants
6. Subcomponent
Manufacturers 2. Retailers
7.
Manufacturing &
Assembly Plants
Component
Manufacturers
Subcomponent Wholesalers
Manufacturers Retailers
Perhaps, Supply NETWORK or Supply WEB
would be a more appropriate term than
Supply CHAIN!
1. Facilities
2. Inventory
3. Storage Resources
4. Transport Resources
5. Human Capital
All of these must be considered when making decisions on the supply chain
© Jayant Rajgopal, 2016
Department of Industrial Engineering
• Suppliers
– How are they sourced?
– In-house vs. outsourcing balance
• Human Resources
© Jayant Rajgopal, 2016
Department of Industrial Engineering
UPSTREAM DOWNSTREAM
INTERNAL
Component
Manufacturers Wholesalers
Manufacturing &
Subcomponent
Assembly Plants
Manufacturers
Retailers
Source: http://www.eastcorkcarparts.com/
Department of Industrial Engineering
– Inventory reduction
– Maintenance reduction
– Productivity improvement
– Order management improvement
minus
Planning Horizon
measured in years
Planning Horizon
measured in months
Planning Horizon
measured in
weeks/days
Source: at-scm.com © Jayant Rajgopal, 2016
Department of Industrial Engineering
VS.
Cannot have the same supply chain even though they sell similar products!
© Jayant Rajgopal, 2016
Department of Industrial Engineering
Lead time strategy Reduce but not at expense Aggressively reduce even if
of greater cost costs are significant
Supplier selection strategy Cost and lowest acceptable Speed, flexibility, quality,
quality reliability
Transportation strategy Greater reliance on low cost Greater reliance on
modes responsive (fast) modes