Factors Perfo. Scm2003
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Factors Affecting the Performance of Supply Chain Management
A) Logistical Factors:2. 3. 4.
Facilities Inventory Transportation
B) Cross-functional Factors:7. 8. 9.
Information Sourcing pricing
It is actual physical location in Supply Chain Network where product is stored, assembled or fabricated. Facilities are a key factors of SC performance in terms of responsiveness and efficiency. Two major facilities :a) production sites b) storage sites
Role Location Capacity
Capacity Utilization Theoretical flow Actual avg. flow Flow time efficiency Product variety
Inventory exists in SC because of mismatch between supply and demand. An important role that inventory plays in SC is to increase amount of demand that can be satisfied by having the product ready and available when the customer wants it. Another significant role that inventory plays is to reduce cost by exploiting economics of scale that may exist during production and distribution. To have more responsiveness-more inventory
Cycle inventory Safety inventory Seasonal inventory Level of product availability
It moves product between different stages in SC. Modes of transportation Road Air Water Rail Pipelines Faster transportation allows a SC to be more responsive but reduces its efficiency.
Design of Transportation Network:Collection of transportation modes, locations and routes along which product can be shipped. Choice of Transportation Mode:- It is the manner in which a product is moved from one location in the SC network to another.
Information serves as the connection between various stages of SC, allowing them to co-ordinate and maximize total SC profitability. Information is also crucial to the daily operations of each stage in a SC. For instance, Prod. Scheduling syst. uses info. on demand to create a schedule to produce a right product in an efficient manner. Warehouse mgt syst uses info to create visibility of inventory.
Push Versus Pull Coordination and Information Sharing Forecasting and Aggregate Planning Enabling technologies
It is the set of business processes required to purchase goods and services. Managers must first decide which tasks will be outsourced and those that will be performed within the firm.
Components of Sourcing Decisions:In-House or Outsource Supplier Selection
It is the process by which a firm decides how much to charge customers for its goods and services. Pricing affects the customer segments that choose to buy the product , as well as the customers satisfactions. Pricing is one of the most significant factors that affect the level and type of demand that the SC will face.
Pricing and Economies of scale Everyday Low Pricing v/s High-Low Pricing Fixed Price v/s Menu Pricing
A) Logistical Factors:2. 3. 4.
Facilities Inventory Transportation
B) Cross-functional Factors:7. 8. 9.
Information Sourcing pricing
It is actual physical location in Supply Chain Network where product is stored, assembled or fabricated. Facilities are a key factors of SC performance in terms of responsiveness and efficiency. Two major facilities :a) production sites b) storage sites
Role Location Capacity
Capacity Utilization Theoretical flow Actual avg. flow Flow time efficiency Product variety
Inventory exists in SC because of mismatch between supply and demand. An important role that inventory plays in SC is to increase amount of demand that can be satisfied by having the product ready and available when the customer wants it. Another significant role that inventory plays is to reduce cost by exploiting economics of scale that may exist during production and distribution. To have more responsiveness-more inventory
Cycle inventory Safety inventory Seasonal inventory Level of product availability
It moves product between different stages in SC. Modes of transportation Road Air Water Rail Pipelines Faster transportation allows a SC to be more responsive but reduces its efficiency.
Design of Transportation Network:Collection of transportation modes, locations and routes along which product can be shipped. Choice of Transportation Mode:- It is the manner in which a product is moved from one location in the SC network to another.
Information serves as the connection between various stages of SC, allowing them to co-ordinate and maximize total SC profitability. Information is also crucial to the daily operations of each stage in a SC. For instance, Prod. Scheduling syst. uses info. on demand to create a schedule to produce a right product in an efficient manner. Warehouse mgt syst uses info to create visibility of inventory.
Push Versus Pull Coordination and Information Sharing Forecasting and Aggregate Planning Enabling technologies
It is the set of business processes required to purchase goods and services. Managers must first decide which tasks will be outsourced and those that will be performed within the firm.
Components of Sourcing Decisions:In-House or Outsource Supplier Selection
It is the process by which a firm decides how much to charge customers for its goods and services. Pricing affects the customer segments that choose to buy the product , as well as the customers satisfactions. Pricing is one of the most significant factors that affect the level and type of demand that the SC will face.
Pricing and Economies of scale Everyday Low Pricing v/s High-Low Pricing Fixed Price v/s Menu Pricing
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