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1、The Characteristics of Supply Chain Management Order Response TimeProduct AvailabilityLead TimeOrder ChangesDue Date PerformanceResource InvestmentAsset ProductivityInventorySupplier & Capacity ContractsLevel ofServiceCost ofServiceThe Business ChallengesComplexityVariabilityConflicting Objectiv
2、esWhat are the characteristics of Supply Chan Management, why is it so hard to manage?ComplexityLead Times Limit FlexibilityLittle or No Predictability and Poor Product MixJanuary? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Chronic CapacityShortagesCurrent Processes and Structures Inhibit Perfor
3、manceInventory Used to Cover ProblemsComplications in the Electronics IndustryComplexity in Component / Semiconductor Manufacturing Mass customization Personalization Product mix effects on capacity Multiple options Contracted vs. owned capacity Combined make-to-forecast and make-to-order Inverted B
4、OM Binning Multi-stage global productionUncertainty in the supply chain results in significant variabilityEarlyOn-timeLateEarlyOn-timeLateUnderForecastOverEarlyOn-timeLateCustomer DemandSupplier PerformanceManufacturingCustomer DeliveriesRawMaterialsFinishedGoods Past Performance Market Research Ana
5、lytical Technique Incentive Programs Responsiveness Transportation Location Quality Process Design Product Design Capacity QualityBy Tom DavisSupplyChannel OrdersActualLaunchReal ShortageReturns/CancellationsOver-SupplyChannel Fill and Phantom DemandTargetLaunchEnd of LifeTrue End Customer DemandUni
6、ts Per PeriodTimeMultiple forecasts and unreliable fulfillment today create the bullwhip effect.Shortened product life cycle has increased the uncertainty.Ramp-upOngoingEnd of LifeRamp-upOngoingEnd of LifeRole of InventoryHighUsualLowCost of ShortageHighUsualLowCost of OverageLowUsualHighBy Professo
7、r Hau L. Lee, Stanford UniversityVariabilityNatural Demand Material supply Production DistributionSelf-Introduced Replenishment strategies Planning processes Inventory strategiesTraditional functional alignments continue to impede Supply Chain Performance. Misaligned Functional Goals & Behaviors
8、PurchasingManufacturingDistributionSales & Customer ServiceGoal:Behavior:Lowest purchase priceHighest utilizationLowest cost100% customer satisfactionnLong lead timesnHigh raw material inventory levelnLong run lengthsnInflexible schedulesnHigh WIP inventorynLong order fill timesnInflexible sched
9、ulesnHigh inventoriesnPromise flexibility Conflicting Objectives - ManufacturingLittles Law Littles LawAssetUtilizationWIPINVCycleTimeVariabilityThroughputWIPCycle TimeVariabilityConflicting Objectives - Customer Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill RatesConflicting Objectives - Corporate Li
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