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Supply chain Design &

Optimization
Prepared by:
AL-Zahrani, Khalid
AL-Suwalim, Othman
AL Kulayb, Ibrahim

Objectives

Define the Supply chain
design&Optimization.
Explain the Organizational Architecture
and information systems architecure.
Illustrate Databases Networks,
software,configuration and informatin
infrastructre design.
Show the most important stages of
supply network technology optimization .

 We will discuss the stages applied from a company to reach an advanced level of supply network technology optimization.  .Intoduction In the beginning we will state the elements of organizational archituctre in parallel to information systems architucture.

Organizational architucture and information systems architecture .

logistics strategies and so on .Organizational strategy  These strategies are the fundementals of supply chain management and includes decisions about products. business strategies such as make-toorder.make-to-stock.core competinces.

Results in a high level end to end vision of the information system structure. . Sets princples . priorites and common goals for network design.Information strategies     Translates the organizations strategy into commitment to treat information systems as strategic investments. Existing systems are compared with what is envisioned by conducting gap analysis with supply chain partners.

Information Content Definition   Making decisions about type of data and data collection methods. In addition to access . In extended SC it includes decisions about targeted market segments . controlling and analysis. product distribution and profit sharing. . performance measures .its degree of accuracy and storing style.

Requires training and ongoing management support. . daily operation and continius improvement initiatives to ensure that the organization’s data and software systems perform as expected.Information policies and control  Methods used in information infrastructure design.

 .  Provides decisions for communication tools and interface devices.Information Infrastructure Design Establish translated policies and control into a consistent and effective information systems that reduces data duplication and errors. software selection and configuration of hardware and software.  Supports effective anlaysis and efficent transaction processing  Provide detailed decisions for network performing .

specific vendor search and selection. databases .networks. softwares and configuration decisions must be selected to satisfy business requirments even as providing a positive ROI. Choices on networking .softwares and configuration     Exact decisions on networks. . Makes decisions to add new technology or update exisiting.availability and data usefulness for decision making. decisions of DBMS are significant. For the organization to maintain its integrity.Databases.

.Information infrastructure change  For continus improvement and system change the supply network design must include progress plans.

It also includes feedback mechanisim to evaluate project success. These plans must focus on expendatures and improvement efforts. . These plans creates project schedules and tasks. schedule . and prioritization   IT action plans are results of operational gap analysis .Action plan. tactical system improvement and strategy update sessions.

 Supply network optimization happens in sequntial stages until it reaches Extended enterprise stage. .SC optimization  Often envolves developing capabilities to find least cost solution for entire network.

Enhanced warehousing CPFR Production scheduling Simple MRP MRP II MRP-ERP Integrated ERP Integration with Suppliers Fax/Phone EDI/Fax/Phone EDI VMI. online RFQ Customer Delivery Research Local Inventory Available-topromise Capable-topromise Stage 1: Multiple Dysfunction Capability Internet . Across all parties SC planning Little exchange of information Inventory reduction. End-to-end integration.Stages of Supply Network Technology Optimization 2 : Semi Functional enterprise 3 : Integrated Enterprise 4 : Extended Enterprise Static web sites Website Across all functions E-commerce Integration None Batch Internal process. Demand planning. Forecasting. Logistics . Design teams.

can electronically exchange documents . The manufacturer has access to the distributers inventory data and is responsible for generating purchase orders. By adhering to the same standard. EDI : Electronic communication system that provides standards for exchanging data via any electronic means. two different companies. even in two different countries.Explanation VMI: Means of optimizing supply chain performance in which the manufacturer is responsible for maintaining the distributors inventory levels.

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C.D F.B.C.B.accessed and controlled. E.C G.D .Multiple Choice Questions: Q#1  Information content definition involves making decisions on … A. What data needs to be collectd . A. B. How will it be stored . B. How its accuracy will be maintained D. C. How it will be collected . A.

C.C. B.D . Customer delivery E.B.C F.Q#2  Supply chain continuously increases its sophistication in terms of … A. MRP and ERP B. A. SC planning and production scheduling D. Internal and external integration.

Both of the above. D. Stage 3: Integrated enterprise .Q#3  At which stage companies use documented processes and align key performance measures to goals… A. Stage 1: Multiple Dysfunction B. Stage 2: Semi-functional enterprise C.

Q#4  A. CPFR reffers to Cumulitave planning & forcasting & replanishment C. softwares and configuration decisions must be selected to satisfy business requirments even as providing a positive ROI. D. . Choices on networking . In stage 4: extended enterprise requires overcoming cultural and technical resistance to change. All of the following statements are FALSE except : A company must move all its business units to the next level at the same time B.