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Supply Chains:
Definitions & Basic Concepts
5. Component
3. Wholesalers
Manufacturers
4. Manufacturing &
Assembly Plants
6. Subcomponent
Manufacturers 2. Retailers
7.
Manufacturing &
Assembly Plants
Component
Manufacturers
Subcomponent Wholesalers
Manufacturers Retailers
Perhaps,SupplyNETWORKorSupplyWEB
wouldbeamoreappropriatetermthan
SupplyCHAIN!
1. Facilities
2. Inventory
3. Storage Resources
4. Transport Resources
5. Human Capital
All of these must be considered when making decisions on the supply chain
Jayant Rajgopal, 2016
Department of Industrial Engineering
Suppliers
How are they sourced?
In-house vs. outsourcing balance
Human Resources
Jayant Rajgopal, 2016
Department of Industrial Engineering
UPSTREAM DOWNSTREAM
INTERNAL
Component
Manufacturers Wholesalers
Manufacturing &
Subcomponent
Assembly Plants
Manufacturers
Retailers
Source: http://www.eastcorkcarparts.com/
Department of Industrial Engineering
Inventory reduction
Maintenance reduction
Productivity improvement
Order management improvement
minus
Planning Horizon
measured in years
Planning Horizon
measured in months
Planning Horizon
measured in
weeks/days
Source: at-scm.com Jayant Rajgopal, 2016
Department of Industrial Engineering
VS.
Cannot have the same supply chain even though they sell similar products!
Jayant Rajgopal, 2016
Department of Industrial Engineering
Lead time strategy Reduce but not at expense Aggressively reduce even if
of greater cost costs are significant
Supplier selection strategy Cost and lowest acceptable Speed, flexibility, quality,
quality reliability
Transportation strategy Greater reliance on low cost Greater reliance on
modes responsive (fast) modes