20. Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Upstream Downstream

21. Customer Retailer Distributor Manufacturer Supplier Customer Order Cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle Pull Push

23. Manufacturer Cost = Rs. 1 Retailer Cost = Rs. 5 Q = 1000 Customer Cost = Rs. 10 Demand = 900 Profit Rs. 4000 Manufacturer Cost = Rs. 1 Retailer Cost = Rs. 5 Q = 1200 Customer Cost = Rs. 10 Demand = 1080 Profit Rs. 5520 Buy Back Profit Rs. 4000 Buy Back at Rs. 3 Profit Rs. 5160 No risk Bears All risk Sharing of risks

29. Cost Inventory costs Transport costs Total costs Rail Air

33. Profile of Inventory Level Over Time Quantity on hand Q Receive order Place order Receive order Place order Receive order Lead time Reorder point Demand rate Time Constant Demand

35. Time Inventory Order Size Note: • No Stockouts • Order when no inventory • Order Size determines policy

36. Order Quantity (Q) The Total-Cost Curve is U-Shaped Ordering Costs Q O Annual Cost ( optimal order quantity) or EOQ Holding Costs

42. Manufacturer Customers In-transit Merge by carriers Retailer

43. Manufacturer Customers Warehouse Storage by Distributor/Retailer