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1、Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-1Chapter 1Understanding the Supply ChainCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-2Traditional View: Logistics in the US Economy (2006, 2007)uFreight Transportation$809, $856 BillionuInventory Expense$446
2、, $487 BillionuAdministrative Expense$50, $54 BillionuTotal Logistics Costs$1.31, $1.4 TrillionuLogistics Related Activity 10%, 10.1% of GNPSource: 18th and 19th Annual State of Logistics Report Logistics MagazineCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-3Traditional View:
3、 Logistics in the Manufacturing FirmuProfit4%uLogistics Cost21%uMarketing Cost27%uManufacturing Cost48%ProfitLogistics CostMarketing CostManufacturing CostCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-4Supply Chain Management: The Magnitude in the Traditional ViewuEstimated th
4、at the grocery industry could save $30 billion (10% of operating cost) by using effective logistics and supply chain strategies A typical box of cereal spends 104 days from factory to sale A typical car spends 15 days from factory to dealershipuLaura Ashley turns its inventory 10 times a year, five
5、times faster than 3 years agoCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-5Supply Chain Management: The True MagnitudeuCompaq estimates it lost $.5 billion to $1 billion in sales in 1995 because laptops were not available when and where neededuWhen the 1 gig processor was int
6、roduced by AMD, the price of the 800 mb processor dropped by 30%uP&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demandCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-6OutlineuWhat is a Supply Chain?uDecision Pha
7、ses in a Supply ChainuProcess View of a Supply ChainuThe Importance of Supply Chain FlowsuExamples of Supply ChainsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-7What is a Supply Chain?uIntroductionuThe objective of a supply chainCopyright 2010 Pearson Education, Inc. Publishi
8、ng as Prentice Hall.1-8What is a Supply Chain?uAll stages involved, directly or indirectly, in fulfilling a customer requestuIncludes manufacturers, suppliers, transporters, warehouses, retailers, and customersuWithin each company, the supply chain includes all functions involved in fulfilling a cus
9、tomer request (product development, marketing, operations, distribution, finance, customer service)uExamples: Fig. 1.1 Detergent supply chain (Wal-Mart), DellCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-9What is a Supply Chain?uCustomer is an integral part of the supply chain
10、uIncludes movement of products from suppliers to manufacturers to distributors, but also includes movement of information, funds, and products in both directionsuProbably more accurate to use the term “supply network” or “supply web”uTypical supply chain stages: customers, retailers, distributors, m
11、anufacturers, suppliers (Fig. 1.2)uAll stages may not be present in all supply chains(e.g., no retailer or distributor for Dell)Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-10What is a Supply Chain?Customer wantsdetergent and goes to JewelJewelSupermarketJewel or thirdparty D
12、CP&G or othermanufacturerPlasticProducerChemicalmanufacturer(e.g. Oil Company)TennecoPackagingPaper ManufacturerTimberIndustryChemicalmanufacturer(e.g. Oil Company)Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-11Flows in a Supply ChainCustomerInformationProductFundsCopyrig
13、ht 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-12The Objective of a Supply ChainuMaximize overall value createduSupply chain value: difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customers requestuValue is corr
14、elated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain)Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-13The Objective of a Supply ChainuExample: Dell receives $2000 from a customer for a computer
15、 (revenue)uSupply chain incurs costs (information, storage, transportation, components, assembly, etc.)uDifference between $2000 and the sum of all of these costs is the supply chain profituSupply chain profitability is total profit to be shared across all stages of the supply chainuSupply chain suc
16、cess should be measured by total supply chain profitability, not profits at an individual stageCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-14The Objective of a Supply ChainuSources of supply chain revenue: the customeruSources of supply chain cost: flows of information, prod
17、ucts, or funds between stages of the supply chainuSupply chain management is the management of flows between and among supply chain stages to maximize total supply chain profitabilityCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-15Decision Phases of a Supply ChainuSupply chain
18、 strategy or designuSupply chain planninguSupply chain operationCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-16Supply Chain Strategy or DesignuDecisions about the structure of the supply chain and what processes each stage will performuStrategic supply chain decisions Locatio
19、ns and capacities of facilities Products to be made or stored at various locations Modes of transportation Information systemsuSupply chain design must support strategic objectivesuSupply chain design decisions are long-term and expensive to reverse must take into account market uncertaintyCopyright
20、 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-17Supply Chain PlanninguDefinition of a set of policies that govern short-term operationsuFixed by the supply configuration from previous phaseuStarts with a forecast of demand in the coming yearCopyright 2010 Pearson Education, Inc. Publis
21、hing as Prentice Hall.1-18Supply Chain PlanninguPlanning decisions: Which markets will be supplied from which locations Planned buildup of inventories Subcontracting, backup locations Inventory policies Timing and size of market promotionsuMust consider in planning decisions demand uncertainty, exch
22、ange rates, competition over the time horizonCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-19Supply Chain OperationuTime horizon is weekly or dailyuDecisions regarding individual customer ordersuSupply chain configuration is fixed and operating policies are determineduGoal is
23、to implement the operating policies as effectively as possibleuAllocate orders to inventory or production, set order due dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery schedules, place replenishment ordersuMuch less uncertainty (short time horizon
24、)Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-20Process View of a Supply ChainuCycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stagesuPush/pull view: processes in a supply chain
25、are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push)Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-21Cycle View of Supply ChainsCustomer Order CycleReplenishment CycleManufact
26、uring CycleProcurement CycleCustomerRetailerDistributorManufacturerSupplierCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-22Cycle View of a Supply ChainuEach cycle occurs at the interface between two successive stagesuCustomer order cycle (customer-retailer)uReplenishment cycle
27、 (retailer-distributor)uManufacturing cycle (distributor-manufacturer)uProcurement cycle (manufacturer-supplier)uCycle view clearly defines processes involved and the owners of each process. Specifies the roles and responsibilities of each member and the desired outcome of each process.Copyright 201
28、0 Pearson Education, Inc. Publishing as Prentice Hall.1-23Push/Pull View of Supply ChainsProcurement,Manufacturing andReplenishment cyclesCustomer OrderCycleCustomerOrder ArrivesPUSH PROCESSESPULL PROCESSESCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-24Push/Pull View of Suppl
29、y Chain ProcessesuSupply chain processes fall into one of two categories depending on the timing of their execution relative to customer demanduPull: execution is initiated in response to a customer order (reactive)uPush: execution is initiated in anticipation of customer orders (speculative)uPush/p
30、ull boundary separates push processes from pull processesCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-25Push/Pull View of Supply Chain ProcessesuUseful in considering strategic decisions relating to supply chain design more global view of how supply chain processes relate to
31、customer ordersuCan combine the push/pull and cycle views L.L. Bean (Figure 1.6) Dell (Figure 1.7)uThe relative proportion of push and pull processes can have an impact on supply chain performanceCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-26Supply Chain Macro Processes in a
32、 Firm uSupply chain processes discussed in the two views can be classified into (Figure 1.8): Customer Relationship Management (CRM) Internal Supply Chain Management (ISCM) Supplier Relationship Management (SRM)uIntegration among the above three macro processes is critical for effective and successf
33、ul supply chain managementCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-27Examples of Supply ChainsuGatewayuZarauMcMaster Carr / W.W. GraingeruToyotauAmazon / Borders / Barnes and NobleuWebvan / Peapod / JewelWhat are some key issues in these supply chains?Copyright 2010 Pears
34、on Education, Inc. Publishing as Prentice Hall.1-28Gateway: A Direct Sales ManufactureruWhy did Gateway have multiple production facilities in the US? What advantages or disadvantages does this strategy offer relative to Dell, which has one facility?uWhat factors did Gateway consider when deciding w
35、hich plants to close?uWhy does Gateway not carry any finished goods inventory at its retail stores?uShould a firm with an investment in retail stores carry any finished goods inventory?uIs the Dell model of selling directly without any retail stores always less expensive than a supply chain with ret
36、ail stores?uWhat are the supply chain implications of Gateways decision to offer fewer configurations?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-297-ElevenuWhat factors influence decisions of opening and closing stores? Location of stores?uWhy has 7-Eleven chosen off-site p
37、reparation of fresh food?uWhy does 7-Eleven discourage direct store delivery from vendors?uWhere are distribution centers located and how many stores does each center serve? How are stores assigned to distribution centers?uWhy does 7-Eleven combine fresh food shipments by temperature?uWhat point of
38、sale data does 7-Eleven gather and what information is made available to store managers? How should information systems be structured?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-30W.W. Grainger and McMaster CarruHow many DCs should there be and where should they be located?u
39、How should product stocking be managed at the DCs? Should all DCs carry all products?uWhat products should be carried in inventory and what products should be left at the supplier?uWhat products should Grainger carry at a store?uHow should markets be allocated to DCs?uHow should replenishment of inv
40、entory be managed at various stocking locations?uHow should Web orders be handled?uWhat transportation modes should be used?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.1-31ToyotauWhere should plants be located, what degree of flexibility should each have, and what capacity should each have?uShould plants be able to produce for all mar
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