Strategic: How many warehouses should Amazon build? Where should they be built? Strategic decisions relate to allocation of resources. Planning: What titles are stocked in house? What replenishment policies to follow? Geographical responsibility by warehouse. Planning decisions relate to policies for utilization of resources. Operation: How is a specific order to be filled? From where? Shipping mode etc. Operation decisions relate to filling specific orders given resources. Discuss the time frame for each decision and how the strategic decision defines constraints for the planning decision which defines constraints for the operation decision.
This is a pretty simple formula- Sometimes expressed as I=RT
Tradeoff necessary at some point
Fragmentation- less vertical integration, interests hard to coordinate Globalization- benefits- new, potentially cheapter sources, new markets but downside: competition, less-protection… facilities further apart, making coordination more difficult Executing and putting into place a strategy can be harder than thinking up one- need good change management! (I.e. I have a great strategy for losing weight_ diet and exercise)
Fiti 2) Can review each 3) Multiple owners-> local optimization, increased product variety, lower life cycles, more demanding customers, etc…
Dr. Cholette DS855 – Fall 2006 Supply Chain Drivers and Obstacles