DECISION

PHASES IN SUPPLY
CHAIN
2013334058, 2013-60, 2013-61, 2013-63
Supply chain is the sequence of processes involved in
the production and distribution of a commodity.

A successful supply chain management

required due to

Flow of
Information Product Variety Funds

Decision is taken in every phase or steps.

 DECISION
PHASES
A typical supply chain may involve a variety of stages, such as

Customers Retailers Distributors

Manufacturer Suppliers

And to take the decision in every phase can be said as supply chain
decision phase.

Overall Objectives of decision phase:

• Raise the supply chain
Surplus.
 N E S
O
I AS
I S SCM

E C PH
D
Decision
Phases

Supply Supply Supply

Chain Chain Chain
Strategy Planning Operati
or on
Design
1.Supply Chain Strategy or Design

How to structure the

supply chain over the next several year?
DECISION
What the chain configuration will be?
TAKEN
About
How resource will be allocated?

What process will be perform in each stage?

What The marketing and pricing plans for a product?

 g ic n
e
t ch s a i
t a
r y n
S pl sio
u p ci
s de
Locations and capacities of facilities

Products to be made or stored at

various locations

Modes of transportation

Information systems
 A firm need to concern about:
the configuration support the overall
objectives
Uncertainty in anticipated market condition over
the next year

Example
Cisco’s Decision regarding
It’s choice of supply source for components,
Contract manufacturers for manufacturing,
Location & Capacity of it’s warehouses.

**Cisco’s ( American multinational technology conglomerate)

 2.Supply Chain Planning

FORECASTING HOW MANY?

WHEN TO ORDER TRANSPORTATION

Planning decisions:
Which markets will be supplied from which locations

Planned build-up of inventories

Timing and size of market

Subcontracting, backup locations

Inventory policies

promotions

Companies define a set of operating policies that govern

short term operation.
Goal
maximizing surplus that can be generated
over the planning horizon.

Company must include

Uncertainty in demand,
Exchange rates,
Competition over the time horizon
3.Supply Chain Operation

Primary Condition
-------Supply Chain configuration is fixed
-------Planning Policies are already defined

Companies makes decision regarding

---------individual customer order

Time horizon
------------daily or weekly
In Supply Chain Operation-
• Firms allocate inventory or production to individual
order
• Set a date that order that an order is to be filled
• Generate pick lists at a warehouse
• Allocate an order to a particular shipping mode and
shipment
• Set delivery Schedule truck
• Placed replenishment order
Less uncertainty
about demand due to operational decision are
being made in short term manner.

Goal
is to exploit the reduction of uncertainty and
optimize performance.
 Decision Phases and time frame
TIME FRAME TYPE TYPICAL DECISIONS
•Supply chain network design (How many plants?
Location and capacities of plants and warehouses?)
years •Supply chain strategies (Sell direct or through
Strategic
retailers? Outsource or in-house? Focus on cost or
customer service?)
•Product mix at each plant

Tactical •Workforce & Production planning

•Inventory policies (safety stock level)
3 mo.- 1year •Which locations supply which markets
•Transportation strategies

•Production scheduling
daily Operational •Decisions regarding individual orders
•Place replenishment orders
 Benefits

Profitability

Success

Development
THANKS FOR YOUR
PRESENCE