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1、Production and OperationsManagement:Manufacturing and Services Presentation for Chapter 12Managing the Supply ChainChaseAquilanoJacobsEighth EditionIrwin/McGraw-Hill The McGraw-Hill Companies, Inc., 19982Chapter 12Managing the Supply ChainSupply Chain ManagementOutsourcingValue DensityPurchasingThe
2、Firm as SupplierJIT PurchasingGlobal Purchasing3Supply Chain ManagementApply a total systems approach to managing the entire flow ofinformationmaterialsand servicesRawmaterialsuppliersFactories &warehousesEndcustomer4OutsourcingPurchased items account for 60 to 70% of the cost of goods sold.Outsourc
3、ing allows firms to focus on their core competencies.Organizations outsource when they decide to purchase something they had been making in-house.Typically handled by materials management function.5Make or BuyCurrent trend favors outsourcing all activities that do not directly represent or support c
4、ore competencies.Are there any dangers associated with aggressive outsourcing? What are the implications for JIT production?6Value DensityValue per unit of weightWhy is it important to know value per unit of weight? Is high value density good or bad?7PurchasingNo longer just order takers.Purchasing
5、need to knowmaterialperformanceavailabilitysuppliers8The Firm as a SupplierIn this chapter, we discuss the role of the firm as a buyer of goods and services.How does the perspective change when the shoe is on the other foot?9Partnership RelationshipContinuing relationship involving a commitment over
6、 an extended time period,an exchange of information, andan acknowledgement of the risks & rewards of the relationship.10Supplier Selection Using the Analytical Hierarchy Process (AHP)Process used to determine weights for supplier-selection criteria.AHP allows individuals to use their own personal ps
7、ychometric scale for making pair-wise comparisons between criteria used to evaluate suppliers.Consistency measures can be calculated as a cross-check to determine how well the scale is being followed.11JIT Purchasing-RequirementsReduced lot sizesFrequent and reliable delivery schedulesReduced and hi
8、ghly reliable lead timesConsistently high quality levels for purchased materials 12JIT Purchasing-SuppliersFewer, nearby suppliersRepeat businessSupport suppliers competitivenessClusters of remote suppliersLimit competitive bidding to new partsResist vertical integrationEncourage suppliers to implem
9、ent JIT purchasing 13JIT Purchasing-QuantitiesSteady output rate (a desirable prerequisite)Frequent deliveries in small lot quantitiesLong-term contract agreements with minimal release paperworkDeliver quantities variable from release to release but fixed for whole contract term 14JIT Purchasing-Qua
10、ntities (Ctd)Little or no permissible overage or underage of receiptsSuppliers encouraged to package in exact quantitiesSuppliers encouraged to reduce their production lot sizes (or store unreleased material) 15JIT Purchasing-QualityMinimal product specifications imposed on supplierHelp suppliers to
11、 meet quality requirementsClose relationships between buyers and suppliers quality assurance peopleSuppliers encouraged to use process control charts instead of lot sampling inspection 16JIT Purchasing-ShippingScheduling of inbound freight Gain control by use of company-owned or contract shippingcon
12、tract warehousingtrailers for freight consolidation/storage 17JIT Purchasing-BenefitsConsistent qualitySavings on resourcesLower costsSpecial attentionSaving on toolingLoyalty associated with long-term relationships with suppliers 18Global SourcingOriginal strategy was to reduce production costs.Changing focus of global purchasing includespro
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