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Supply Chain Concepts (LE)Ambarish ModakMonth 07, 2014 Internal

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Supply Chain of Today

Integrated supply chains

Demand Planning Responsiveness

Customer Relationship collaboration

Order fulfillment & delivery

Supplier Relationship Collaboration

Manufacturing customization

Reverse Logistics

Supply chain Integrative Processes

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Logistics

Design and administer systems to control movement and geographic positioning of raw materials, work-in Progress and finished inventories at lowest cost

Logistics Integration Objectives

Responsiveness

Variance Reduction

Inventory Reduction

Shipment Consolidation

Quality

Life Cycle support

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Manufacturing

Manufacturing Strategy– Engineer to Order( ETO )

– Make to order( MTO )

– Assemble to Order ( ATO)

– Make to plan (MTP)

Manufacturing Processes– Job Shop Process

– Batch Process

– Line Flow Process

– Continuous Process

Product Variety

Volume Strategy Consumer Leadtime

Job Shop Very high Very low ETO/MTO Very long

Batch High Low ETO/MTO/ATO

Long

Line Flow Limited High ATO/MTO Short

Continuous Very Limited Very high MTP Very Short

Contemporary Manufacturing developments

Mass customization

Lean systems

Flexible Manufacturing

Six Sigma

Materials Requirement Planning

Available to Promise

Design to Manufacture

Design to logistics

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Inventory

Inventory functionality– Geographical Specialization

– Decoupling

– Supply/Demand balancing

– Buffering uncertainty

Inventory Definitions– Inventory Policy

– Service level

– Average inventory

– Independent & dependent demand

Inventory carrying cost– Capital

– Taxes

– Insurance

– Obsolescence

– Storage

Planning Inventory– When to Order

– How much to ordero EOQo Volume transportation rateso Quantity discountso Production lot size, Dedicated

trucking, unitization

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Transportation

Participants

Modes of Transport– Truck

– Rail

– Water

– Pipeline

– Air

Transportation Economies– Economy of distance

– Economy of weight

– Economy of Density

– Handling

– Liability

– Market

Pricing Freight– Class rates

– Freight Classification

– Rate determination(minimum + surcharges)

– Commodity rates

Specialized transportation services– Package service

– Intermodal ( TOFC/COFC)

– Containership

Transportation Management– Operational

– Consolidation

– Negotiation

– Control

– Auditing and Claims administration

Documentation– Bill of Lading

– Freight Bill

– Shipment Manifest

Impact of Transportation on Product Pricing– FOB Origin

– FOB Destination

– Delivered Pricing ( Single Zone, Multi-zone, Basepoint

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Warehousing

Warehousing Benefits– Economico Consolidation and Break-bulko Sortingo Seasonal Storageo Reverse Logistics

– Serviceo Spot Stockingo Full-line stockingo Value added services

Consolidation

Break-Bulk

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Warehousing

Warehousing Operations– Handlingo Receivingo In-Storage Handlingo Shipping

– Storageo Active Storageo Extended Storage

Warehousing Decisions– Site Selection

– Design

– Product Mix Analysis

– Expansion

– Handling

Typical Warehouse Design Master Cartons Unitization Unit Load

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