Vendor-Managed Inventory At NIBCO Essay

Vendor-Managed Inventory at NIBCO Essay
NIBCO has 100 years history and $ 400 million revenues. The main product is flow control like
valves, fitting, and hangers so on. Compare to other same types of manufacturers, NIBCO wants to
provide low price and differentiation of flow control products. In these days, the product quality is
not only a requirement among the commodity markets. The value–added services also are good
ways to attract more customers. However, when NIBCO wants to give value–added services to
customers, the old system cannot suit their needs. The managers of NIBCO decided to use SAP R/3
implementation project, which helps them to deal with issues. From 1998 to 2001, SAP R/3
implementation has run smoothly in NIBCO. As a supply chain business processes, the ... Show
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Decreased in inventory levels from $102 million to $76 million
Inventory turns enhanced by 17% (from 3.66 to 4.27).
Reduction in administrative costs and annual sales by 19%.
Decreased cost of annual distribution by 20%.
Decreased costs of annual purchasing by $6 million.
Overall support staff was decreased by 16%.
Customer service center staff was decreased by 40%.
Financial closing cycle was decreased from 10 to 2.5 days.
Approximately $40 million (per year) decrease in baseline procurement costs.
Discussions:
Q1: The key advantages of SAP supply chain investments
1. Improved customer service by focusing on order accuracy and product available
2. Developed multichannel customer service capabilities and electronic partnerships for customers
and suppliers.
3. Increased the effectiveness and reduced the costs of doing business through continuous business
process improvements in both its internal and external supply chains.
Q2: Describe what types of transactions are involved in NIBCO's VMI program?
NIBCO's domestic wholesale and retail customers have already made an investment in EDI. For
those who need to start from the bottom, investment doesn't only include technology but also
ongoing technical support personnel. But another choice for that is outsourcing to an EDI trading
partner. 4 different types of EDI transactions are currently involved in NIBCO's VMI program.
1.
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The Operation Management Approach To Total Quality Management
Operation Management is the study of how people organize themselves for productive enterprise .In
order to be effective and efficient, an operation manager must possess a series of attitudes and skills
to push his/her company forward to reach goals and objectives. Operation management consists of
the four functions, that is, planning, organizing ,controlling and leading. These functions help in the
analysis of the activities done by the organization.
Operation is also about creating goods and services and it is known as the transformation process
which turns a range of inputs into the desired output (services) having the requisite quality level.
Management is the process which makes the combination and transformation of various resources
used in the operations scheme of the organization .If the same concept is extended to services
management, then the ... Show more content on Helpwriting.net ...
TQM does not prescribe a number of steps that must be followed in order to achieve high quality but
rather should be considered a framework within which organisations can work.
3.1.2.Just– In– Time
William J. Stevenson, in Production/Operations Management, defines the term just–in–time
manufacturing as "a repetitive production system in which processing and movement of material
and goods occurs just as they are needed,usually in small batches" (Stevenson, 1996). However,
just–in–time (JIT) is more than an inventory system. JIT manufacturing is a philosophy by which an
organization seeks continually to improve its products and processes by eliminating waste (Ptak,
1997)
3.1.3The Six Sigmas
Six sigma is a quality management approach that places heightenedmanagerial attention on
customer satisfaction and on seeking businessprocess improvements.

Star Industries
EXECUTIVE SUMMARY
As expansion is always the essential target of Star Industry Cooperation, especially in Viet Nam
because there is a huge and potential market for eco–friendly windows and doors constructed by
artificial wood.
The report is written for providing strategies how to expansive our market in Viet Nam and views of
operation department. It will also consider issues and solutions that related to market expansion.
Expansion in Viet Nam is a changeling for every Star Industry 's departments, particularly Operation
team.
The first part of the report will introduce some market researches' views contained supply and
demand issues available. Costs and benefits of researches also are provided. Potential issues and
these solutions will ... Show more content on Helpwriting.net ...
In the second part, some researches about customers 'demands and needs when choosing windows
and doors. Understanding the high demands and expectation from customers can help Star Industry
exactly service customers.
The costs, benefits and some potential issues, solutions will also be analyzed with proposed
procedure. Finally, action plan will show step–by–step how Operation department implement the
new strategy of expansion. II. Researches
1. Researches of Vietnamese and ASEAN market a. Supply
There are more than 2,000 manufacturers operating in Vietnam. However, they mainly focus on
exports as foreign customers often order in a large amount and no distribution channel is required.
Vietnam is among the largest furniture exporter in South East Asia, ranked by CSIL as the 6th
largest furniture exporter at world level.
Furniture exports from Vietnam, 2000–2010Đô la Mỹ (US$ million)
According to the Labor newspaper, there are only 20% of products manufactured by Vietnamese
companies while the remaining is from other countries such as China in the domestic market. Major
suppliers in Vietnam are European Plastics Window Company Limited, Dai Truong Thanh Company
Limited, TPL (manufacturers) and Dai Hoa Phat (distributor).
China is the major wood supplier for the world furniture industry. However, as many companies do
not want to overly depend on China, Vietnam is becoming an optimal alternative due to high quality
and inexpensive products.

Supply Chain Inventory Essay
The Role of Inventory in the Supply Chain.'
$1.6 billion, it is an estimation of manufacturers' and trade inventories in the United States in august
2012 (according to the US Department of Commerce). Inventory represents a significant part of
company budgets. They are costly and can be risky, but the company spend a lot of money in
inventories because they also provide some security for businesses. But what is exactly the role of
inventory? Why it is required and what is its purpose?
This essay explains in a first part what supply chain is. Then in a second part, it defines the term of
inventory and this purpose. Finally the last part considers the key role of inventory in the supply
chain and how is controlled. ... Show more content on Helpwriting.net ...
Indeed, to have a product ready and available when customers want it allows coming up efficiently
to their expectations. It is very important for a company to limit long waiting times for the customer
and inventory influences the time and cost of service. So, inventory allows to satisfy and to respond
efficiently to customer demand.
Then, inventory allows minimizing costs, it is speculative stock. For instance by exploiting
economies of scale that may exist during both production and distribution. Or, when the supplier
provides significant discounts for bulk purchases, storage can be useful too. Delivery costs will be
reduced if lot sizes are large.
Inventory has too a regulatory function; it allows managing and limiting irregularities in supply or
production. Therefore it reduces the risk of breakdowns and helps maintain an ongoing activity.
Besides, inventory allows protecting the company from price increases of materials or products
purchased or sold.
Finally, we can mention the pipeline inventory. This last kind of inventory allows to the company to
face with transportation delays in the supply chain network.
We can conclude that inventory provides some security in a complicated and uncertain environment.
Although inventory plays a major role in the supply chain, there are also some inconveniences.
Inventory is very costly and uses space that could be used in a more profitable way.

How to Do Production Planning and Control
Production, Planning and Control
Dr. Sindhuja
The most important business module – Production. Why?...
Objectives
The ultimate objective of production planning and control, is to contribute to the profits of the
enterprise. this is accomplished by keeping the customers satisfied through the meeting of delivery
schedules. Specific objectives of production planning and control are to establish routes and
schedules for work that will ensure the optimum utilization of materials, workers, and machines and
to provide the means for ensuring the operation of the plant in accordance with these plans.
Components of PP
SOP: Sales and operations planning DRP: Distribution Requirements Planning MRP: Materials
Requirement ... Show more content on Helpwriting.net ...
It is tightly integrated with modules such as MM and SD thru the use of MRP which is also part of
PP
Flow of Production Planning
Customer order management Demand management
I/P MRP BOM
Purchase requisition
Planned order
A
A
Define work center
Routing

Goods issue
Release order
Order confirmation
Order settlement
Flow of PP
Demand generation thru demand management calculates the quantities to produce and the time for
the final assembly data from demand management is transferred to MRP. The data from demand mgt
can come from Customer Sales Order (firm) or Planned Order (forecast).
MRP checks for the availability of material at various stages of BOM.
– In case material is not available MRP generates planned order and Purchase requisition for
production of components in house and procurement from vendor respectively.
The planned orders are converted into production order by the planner and the purchase requisition
are converted into purchase order by the purchaser.
Production in charge converts the planned order to production order and carries out the
production activities once the order is released for production. Production is carried out as per the
operation steps provided in the routing. Work centers are also mentioned with each operation in the
routings where these operations are to be carried out. Once the

Advantages Of Vendor Managed Inventory
2. VENDOR MANAGED INVENTORIES
Vendor–managed inventory (VMI) is an inventory management system in which the supplier
undertakes the responsibility of maintaining inventory for the retailer and makes sure that there
won't be any stock out situation. VMI is a coordination mechanism which has been gaining a lot of
attention. The replenishment orders for the goods are no longer rendered by retailers, it is the
supplier who manages the replenishment orders, time and quantity. It originated with the realization
that vendors could efficiently control the flow of goods from raw materials to the final consumer,
and the buyers could enjoy reduced stock levels and increased service levels. The advantages of
VMI partnership include reduction of costs not ... Show more content on Helpwriting.net ...
The first approach works in a quite traditional way that the ownership of the inventory is transferred
when the goods are delivered. In the second approach the vendor owns the inventory until the goods
are sold to final customer, the retailer makes the payment to vendor when the goods are sold. This
approach is described as 'VMI on consignment'. The vendors are getting whole responsibility of the
supply chain in this approach together with the risk of unsold items which may bring some financial
risks to the vendors. But on the other hand retailers are getting much more advantages by
implementing this approach.
Although there are several samples of successful VMI implementations from different industries
each VMI project must be considered as unique because of following reasons;
1. Each industry has different resources, structure, and capability.
2. Products and processes in each industry differ.
3. The level of integration between supply chain members is different.
4. The strategic and operational objectives of every industry are different.
5. Regulations, policies, legal, and technical issues differ from country to country and from industry
to

Accounting: Supply Chain Management Terms and Ans
Chapter 2
Job Order Costing
TRUE/FALSE
1. Cost accounting systems are used to supply cost data information on costs incurred by a
manufacturing process or department.
ANS: T
2. A manufacturer may employ a job order cost system for some of its products and a process cost
system for others.
ANS: T
3. A job order cost accounting system provides for a separate record of the cost of each particular
quantity of product that passes through the factory.
ANS: T
4. A process cost accounting system provides for a separate record of the cost of each particular
quantity of product that passes through the factory.
ANS: F ... Show more content on Helpwriting.net ...
a. | Job order cost system | b. | General cost system | c. | Replacement cost system | d. | Process cost
system |
ANS: A
5. For which of the following businesses would the job order cost system be appropriate? a. | Meat
processor | b. | Automobile manufacturer | c. | Oil refinery | d. | Construction contractor |
ANS: D
6. For which of the following businesses would the process cost system be appropriate? a. | Book

Table And Chair Swot Analysis
Research by Lan and Unhelkar (2006) explain that the SWOT analysis aims is provide an overview
for businesses to have a broad picture of the organization capability in a supply chain.
Based on Lan and Unhelkar findings, the use of SWOT analysis is to check if the supply chain
management is running smoothly the time delivery parts, raw materials and finished goods where it
will show the positive and negative aspects within the Table & Chairs supply chain below.
Supply Chain Strengths
Tables & Chairs strengths
Core competency
Strength in negotiation
Qualified and reliable suppliers
Keeping costs below that of competitors
Have an excellent staff with strong knowledge of current products
A strong geographical location
Business reputation
Vendor Strengths
Quality ... Show more content on Helpwriting.net ...
However, Table & Chairs must improve the way of coping with the demands of order in order to
meet the customer needs and create an online integrated system connecting company, suppliers and
customers in order to have a speedy service as a competitive advantage against their competitors.
This new system will also reduce the transportation costs and reduce the time to deliver parts and
materials in order to beat the competitors in delivery time.
As a result of SWOT analysis, we believe that Tables & Chairs should introduce the e–chain supply
in order to improve flexibility and move toward real time operations by sharing information and
collaborating dynamically among partners and get rid of the traditional model in order to run the
process of getting the parts and materials from suppliers. As a consequence, it will facilitate a faster
and efficient service to meet the customer's special requirements. As a result, it will generate
customer satisfaction, better relationship with suppliers and Table & Chairs can be ahead of its
competitors in a tight

Supply Chain And Customer Relationship Management
Executive Summary
In the current scenario, there is a tremendous shift from traditional management systems to supply
chain and customer relationship management. Earlier companies used to follow traditional
management systems where the main emphasis was on the Activity–based costing (ABC). It
represents analyzing the activities and then assigning resources on to them. In all this process the
activities become cost centers and costing is defined at each stage. On the other hand with the
invention of technology and automated processes, now the management is moving towards use to
supply chain and customer relation management to track the suppliers of both raw materials and
finished products. Also, companies nowadays are taking steps to have a set of satisfied customers.
The shift in the vision of companies leads to development and use of both supply chain and
customer relation management tools.
This paper tries to find and compare the traditional management systems with the supply chain and
customer relation management system. The paper first defines each management system and then
move to compare and contract each with respect to the factors affecting the organizations.
In the traditional management system, the main emphasis is on the volumes allocated to overhead
costs and overhead items. The main costing element under it is the Activity Bases Costing (ABC).
ABC tries to utilize cost drivers in terms of both volume and nonvolume of activities and raw
materials. Managers

Case Study : ' Renker An Infomercial Studio '
Guthy – Renker Case Brief
Guthy – Renker an infomercial studio which has emerged into direct response marketing which has
discovered and developed different award winning products. Most of the function – product design,
manufacturing, media, call centers, fulfillment, shipping, customer service – are outsourced.
Whenever there is need of information Guthy – Renker be contingent on their IT department to
gather data and produce report. To overcome this difficulty and to reduce the manual effort they
have come up with its first formal Business Intelligence project. The company 's initial model of
business intelligence used a FoxPro based database management system which had several issues
with the maintenance and update of the data and was also not able to scale up with the growth of the
business. With expertise from Trinus Corporation, Steve Johnson (Vice President of Information
Technology) and Manish Gupta (Director of Information technology) rolled out new BI project.
Some of the major changes to the company were the standardization of data across the enterprise
and made data available to all the level business users with ease. They also made sure that the
reports are generated even for the one who got no technical expertise. According to Joseph, W.,
Clark & Omar, A., El Sawy. (2010), "BI capabilities are often described in terms of key performance
indicators, or KPIs" (p. 15).
Key Performance Indicators (KPIs) are used to evaluate tangible performance of an organization.

Notes On Supply Chain Management
BIS 647 Enterprise Systems for
Management using
SAP Software
Report
Group 4
Padmavati Srinivas Pappala – pappa1ps (GBI–082)
Tarakarama Ravi Teja Godavarthi – godav1t(GBI–067)
Venkata Satya Raviteja Kollu– kollu1v(GBI–071)
Topic: Supply Chain Management in the field of business
ABSTRACT
The term supply chain defines the combined efforts of different organization in reaching of a
product to the end user. The concept of Supply Chain Management lies in the idea of maximizing
the customer value and attain competitive advantage. The SCM incorporates the development and
capacity of raw materials, work–in–procedure stock, and completed products from the beginning
point to processing to the final customer.
By proper management of the ... Show more content on Helpwriting.net ...
INTRODUCTION Every product or service goes through several processes and steps before
reaching the customer. When a company makes a product from raw materials bought from a supplier
and sell it to a customer then, there is a supply chain in place (Murray, 2014).Each product has a
different series of steps that transform the raw materials into finished products, events in the supply
chain lead to this conversion. Supply chain represents the flow of information and finances also and
not just materials. Here, information means the knowledge of delivery dates and stock updates.
Materials flow in the direction of the supply chain while finances flow in the opposite direction and
information flows in both the directions (Renganathan, 2014). Supply chain management can be
defined as the things that are done to influence the supply chain in order to get the desired results
with competence in the best interest of the market being served (Basic Concepts of Supply chain
Management). Each supply chain has its unique set of demands and challenges which vary
depending upon the size of the business and the product itself.
ELEMENTS OF SUPPLY CHAIN There is a basic outline to the exercise of supply chain
management. It involves several elements that help in the movement of the product or service from
the manufacturer to the customer. The elements involved are customer, planning, purchasing,
inventory, production and transportation.

Case Study Questions On Strategic Manufacturing Management
MANF6860 STRATEGIC MANUFACTURING MANAGEMENT
Assignment 1
Jacky Ming Jie Chen
Z3466229
Q1. Who are the main customer groups (or potential customer groups) within the industry? In what
ways might they exercise their influence? How would you describe their bargaining power?
As supermarkets and the additional ownerships of Woolworths do not exercise strategy on a single
or niche market but based on general customers consisting of individuals satisfying their needs,
Woolworth's main customer groups may be distributed in two different groups. The wealthier group
that consists of a higher quality of living due to their higher annual income and a poverty or less–
wealthier level group due to their low income. Both groups could be separated by a median salary
split based on the latest available data from statistics. Possible influences of income level may be
demographical and geographical in which the combined will determine which group customers
belong to. There are different ways in which the customer groups may exercise their influence, the
difference is mainly based on which group customers belong to.
The higher income group may exercise their influence by manners that are logical in terms of their
wealth. For example, a wealthier customer may purchase the most expensive products which are
advertised or marketed as the best in comparison to its competitors. Wealthier customers may also
prefer to shop in bulks as the large purchases may not influence their budget

Dell's Supply Chain Management
Direct Sales and Build–to–Order Model: Dell's computers, workstations, and servers are built–to–
order and none are produced for inventory purposes which clearly cuts Dell's cost on inventory. Dell
customers could order through their website or even via phone, custom–made servers and
workstations based on the needs of their applications. For desktop and laptop, customers are able to
order whatever configuration of microprocessor speed, random access memory (RAM), hard–disk
capacity, CD–ROM drive, fax/modem, monitor size, speakers, and other accessories they favored.
The orders will then be directed to the nearest factory. Dell has proven to be successful in
minimizing inventory and bringing new products in the market quickly enabling them ... Show more
content on Helpwriting.net ...
In Dell's website, there is also an interface called the 'premier page' for corporate customers to
facilitate B2B or Business to Business sales and to separate them from the personal use customers.
The interface is designed for purchasing manager or whoever is in charge to log on and place an
order. This interface is also customized according to the company's needs. The bullwhip effect is
also being reduced as a result of Dell's direct sales model. Dell contracts special web pages for
suppliers, allowing them to view orders for components they produce when a customer orders them
through Dell's website. This will give suppliers the advantage and the possibility to plan based on
customers demand. This also allows Dell to achieve substantial unit cost advantage. Dell is able to
minimize rapid depreciation and inventory write–off costs by its direct sales model. Through Dell's
direct sales model, Dell is able to collect payment in 5 days on average after a product is being sold.
However, Dell still continues to pay their supplier according to the traditional billing schedule as
when it comes to money, the traditional way of billing, invoicing and etc is still preferable.
Inventory is low and is negative in Dell's working capital, thus, making able for Dell to concentrate
on increasing its performance.
Q3. What are the main disadvantages of Dell's direct sales model? The most remarkable thing about
Dell is its direct sales model. A

Gillette Case
Gillette
Logistics Management
Logistics – 1st semester
With regard to developing and introducing new products, what lessons did Gillette learn from the
Wilkinson Sword and Bic experiences?
Gillette learned that they had to think ahead and be creative to be competitive.
They learned that they have to develop their products before their competitors to be the leading
company of the market and staying popular to the customers.
Russel B. Adams Jr., says in the Gillette case study text: "This is what happens to you if you're not
up there keeping ahead of the market", which shows that Gillette is aware of the problem and of
course will try to fix it.
To keep up with customers demands they had to do as Bic, who made disposable ... Show more
Here we have to look at what the customer requirements are which is what Gillette needs to look at.
If we look at the "house of quality", the customers will have requirements regarding performance,
like if the shaver is affordable and if it has a smart design.
Then they compare the customers requirements to the products characteristics to see if the product
lives up to the requirements. Maybe one of the characteristics of the shaver would be that the new
razors are better and really good for your skin but expensive. Because the customers requirement
was that it had to be inexpensive, it doesn't meet customers requirements.
We can then look at synergies between some of the features and if they can be combined.
After making this analysis we know what customers requirements are and if our product lives up to
them.
When we are all done talking about QFD, we will have tried to identify the specific manufacturing
and service process steps needed to meet the customers requirements by taking each requirement
and product specification and figure out what material is needed to produce this product and what
the processes for making the product are and so on.
So it is not just about developing and being good at one thing, you have to meet the customers
requirements and try to develop a product they really want to buy. An analysis like explained above
can help Gillette understanding its customers.

A company like Gillette

Case Study of Seven-Eleven Japan Company
Supply Chain Management Case study of Seven–Eleven Japan Company A. Background Seven–
Eleven, a famous convenience store, was established in 1973 and had its first store in Tokyo in May
1974. It was found by Masatoshi Ito while he thought that superstores were the wave of the future
after a trip to the United States. The company was first listed on the Tokyo Stock Exchange in
October 1979. During 1985–2009, the numbers of store and its annual sales experienced tremendous
growth that the number of stores increased to 12753 and annual sales increased to 2785 billion yen.
At the moment, Seven–Eleven Japan was the world's largest chain in term of retail outlets. The idea
of convenience store was very popular immediately through the ... Show more content on
Helpwriting.net ...
Therefore, they can guarantee the freshness in the perishable products at Seven–Eleven. Also,
suppliers can delivery in large amount with one full truck load as there has a store big enough to
keep the products with the method to keep the product longer and still perish. For the cons side,
because the size of Japan is much smaller than the United State, compare with the number of stores,
there are 13049 stores over the Japan and in United States are 6726. The smaller size of land, the
greater number of stores of Japan means that the density of stores in Japan is very high, therefore
customer can assess to stores more easily. On the other hand, the low density of stores in United
State may cause inconvenience to customers and deliver a few product everyday may using too
much cost with the longer distance of each branch. Also, it will increase transportation cost at stores
because of increased delivery as Distribution Centers need to deliver the product everyday with a
few amounts in order to keep the freshness of the product. Then, Seven–Eleven will lose the
economics of scale advantages, as Seven–Eleven need to order the product everyday in the fewer
amounts. 4. What changes of the supply chain strategies of Seven–Eleven Japan do you suggest in
view of the introduction of the e–business of 7dream.com and "Otoriyose–bin"? I think the e–
business of 7dream.com and "Otoriyose–bin" is good ideas. The 7dream

Supply Chain Management of Fmcg Companies
Supply Chain Management of FMCG industry Group A2 Akshaya M Rajee–MBA10003 Eldho M
Abraham –MBA10025 Lijo Jose–MBA10047 Ramya S–MBA10069 Sreeram C–MBA10093
3/9/2011 INTRODUCTION A Supply Chain is a network of facilities and distribution options that
performs the function of procurement of materials transformation of these materials into
intermediate and finished products and the distribution of these finished products to customers. It is
the process used by the companies to ensure that their supply chain is efficient and cost effective. It
also basically a collection steps which a company follows to transform raw materials into finished
products the five different stages are Plan Develop Make Deliver and Return Plan A plan or ... Show
SAP has helped emami to achieve this. Improved Timeliness The SAP implementation is helping to
reduce the amount of time and effort it takes to full fill customer requests and transactions
Strengthens Relationships It increases the quality of customer interactions. Information is accurate
The system acts as a warehouse for information and helps to build accurate customer profile.
DABUR INDIA LIMITED Overview Dabur India Limited is a leading Indian consumer goods
company. The company was started as an Ayurvedic medicine company; it has come a long way
today to become one of the leading consumer products manufacturers in India. The company is
providing naturebased solutions for a healthy and holistic lifestyle. Supply Chain Process Dabur
went on to follow its own model in the supply chain department. It decided not to use a packaged
SCM solution due to the high cost and relative lack of complications in its supply chain. It
developed an in house easy–to–use Intranet based data–warehouse displays asof–yesterday sales,
stock, receivables, banking, and other MIS. The integrated system has a number of unique features.
The features are Tight integration schemes Stockists credit limit control Automated banking cheques
Online cheque reconciliation Dabur's stockists supply to 1.5 million retailers. Seventy percent of the
sales are accounted for by the top 500 stockists. The incorporation of these top stockists into its
supply chain is a first for any FMCG

Case Study Of Carrefour
INTRODUCTION  Hyper star is a subsidiary of Carrefour.
 Carrefour is a French chain retailer–store.
 Its world's 2nd largest retailers.
 Hyper star bought in Pakistan by majid al futtaim.
 Majid Al Futtaim is an Emirati holding company based in Dubai, which as of 2015 owned and
operated shopping malls, retail, and leisure establishments in the Middle East and North Africa, with
operations in 13 countries. DEFINATION OF INVENTORY
"Inventory is one of the drivers of supply chain. Inventory is the stock of goods held for doing
business."
INVENTORY CONSISTS OF THE FOLLOWING:
 Raw material required for production process.
 Work in progress (WIP), eg, semi finished goods.
 Captive consume able goods, goods used by manufacturer.
 ... Show more content on Helpwriting.net ...
We are conduct interview with RASHID RAHEEM a senior manager of supply chain department in
hyper star. We ask some questionnaires with him and he giving us answers of those questions.
These are the answers according to their supply chain department.
CHALLENGE: challenge of inventory that hyper star supply chain faces is cost effective, lead time,
changes in different taxes policies doing work according them.
TOOLS: KPI's key performance index can easily target.
BENEFITS: Possibility in transparency in cycle and good conviencial decision.
INVENTORY SECURITY: For reconciliation of inventory they used process security document
notes, Material receive notes, Material issue Notes.
CONTROL INVENTORY: Advancement in control the inventory.
ISSUES: Shortage of material .low stock, bad planning of other departments.
WEAKNESS: MR, Rashid Rahim says there is no weakness, Weakness is depending on the
individual, and strength provided by supply chain

Walmart 's Target Strategy For Growth Essay
Walmart's Generic Strategy
Cost Leadership is Walmart's generic strategy. Walmart's focus is on maintaining low prices of
goods and services. Walmart is known for low prices, which is the main selling point of the
business. The company keeps its prices low through cost reduction in operations.
4.2 Walmart's Intensive Strategies
Market Penetration. Walmart uses market penetration as its main intensive strategy for growth.
Market penetration involves selling more goods and services to the current target market. Walmart
sells more goods and services to its current consumers by offering discounts, promotions, and
special packages.
Market Development. Walmart uses market development as its secondary intensive strategy for
growth. This intensive growth strategy involves entering new markets to sell to consumers other
than those that the company currently has.
5. Walmart Supply Chain Management
Walmart's value proposition is based on offering Everyday Low Price (EDLP). This is the core of
Walmart's Business Model and the rest of the key features of Walmart's Business Model are aligned
to keep the everyday low price.
5.1 Procurement and Distribution
Since 1987, Walmart ruled the world's largest private satellite communication network. This
network allows the instantaneous transfer of data between headquarters, distribution centers,
suppliers and stores. Moreover, Usage of vast networking system allows for management to
communicate effectively with all employees, or even better,

Dell's Value Chain
Dell's Value Chain
1. How has Dell used its direct sales and build–to–order model to develop an exceptional supply
chain? Dell has used its direct sales and build–to–order model to develop an exceptional supply
chain by taking customer feedback very seriously. Dell uses the feedback to further evaluate and
when necessary, implement change to improve their supply chain. The company maintains close–
knit relationships with customers, and maintains very close, professional relations with their
suppliers. Dell collects a larger amount of customer information than is the industry norm. This also
works to the company 's advantage. The close–knit relationships with customers that Dell maintains
allow the company to determine what products ... Show more content on Helpwriting.net ...
The greatest advantage Dell experiences are the direct elimination of all retail and distribution costs
for their products. Because Dell does not have to operate multiple locations, warehouses, etc, they
can offer their products at lower prices, which attract even more consumers. Dell does not have the
same high fixed expenses that their competitors have, who operate multiple factory locations. Dell
also competes with retailers who already have a stock by doing just the opposite – not carrying a
stock. When a consumer wants a particular model of computer, the retailer must have the item in
stock. When a customer shops at Dell, the customer designs exactly what they want. A customer can
design a very basic, bare–bones model, or a model that includes almost limitless options. The
computer is then built in a matter of hours. The customer has his or her own, custom–designed
system in a matter of a few days. There is no waiting for out–of–stock products, and Dell holds
minimal inventory by utilizing such a well–designed system.
5. How does Dell 's supply chain deal with the bullwhip effect? The Bullwhip Effect in itself is a
situation whereby the variation in orders is heightened as it gradually moves up the supply chain
through a specific process. The process moves from consumer to distribution, and then moves to
suppliers. To deal with the Bullwhip Effect, Dell is open with sharing knowledge with their

Chapter 14
The chapter 14 case talks about Amazon, and describes its way until became one of the largest
companies of online shopping, and Kindle as one of the first generation of Kindle. Amazon
according to the case has no roof over its head which would mean that technically there's not a
particular shopping store where you can go and buy something. But is online shopping, and where
the sellers and buyers are connected with each–other through phone calls, website, and emails as a
particular way to connect every one of us. As of now Amazon is one of the biggest online sellers
with almost $32.4 in 2010. Only with the amount of money that Amazon profits, we can see that it is
a very big company, and pretty much the biggest one. Today there are a high ... Show more content
on Helpwriting.net ...
So in this case we talk about a manufacturing, because the books, or other goods are there already,
and taken out only if a customer buys it. Location: according to the location I would say that
Amazon looks like more as a service firm instead because it doesn't require a physical production.
The people creating and delivering the service can be located anywhere. Otherwise manufacturers
must have a physical location for their production and stock holding operations. Production does not
necessarily take place on the manufacturer's own site; it can take place at any point in the supply
chain. 2. Describe the role of technology in both Amazon's manufacturing and service operations.
Operations strategy defines the way in which a firm competes in the marketplace. Examples of these
strategies include (a) low cost, (b) quality, (c) speed of delivery, and (d) customization. Managers in
the past had to decide which of these strategies was most applicable to the particular market segment
they were serving. In so doing, they recognized that there were trade–offs involved. These
traditional trade–offs are no longer valid for most businesses because technology has "raised the
performance bar" by allowing firms to compete on several of these dimensions simultaneously. For
example, firms using technology, such as Dell Computer, can now produce and quickly deliver
individually customized products, and at a very competitive price. Technology

Accounting: Supply Chain Management Terms and Ans
Chapter 2 Job Order Costing TRUE/FALSE 1. Cost accounting systems are used to supply cost data
information on costs incurred by a manufacturing process or department. ANS: T 2. A manufacturer
may employ a job order cost system for some of its products and a process cost system for others.
ANS: T 3. A job order cost accounting system provides for a separate record of the cost of each
particular quantity of product that passes through the factory. ANS: T 4. A process cost accounting
system provides for a separate record of the cost of each particular quantity of product that passes
through the factory. ANS: F 5. A process cost ... Show more content on Helpwriting.net ...
If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying
overhead, as of this point in time (year to date) the overhead is over/under applied by? a. |
$1,000,000 over | b. | $1,000,000 under | c. | $500,000 over | d. | $500,000 under | ANS: A 16. At the
end of the year, overhead applied was $35,000,000. Actual overhead was $34,200,000. Closing
over/under applied overhead into cost of goods sold would cause net income to increase/decrease
by? a. | Increase by $800,000 | b. | Decrease by $800,000 | c. | Not effect net income. | d. | Decrease
net income by $200,000 | ANS: A 17. Which of the following would most likely be a period cost? a.
| Depreciation on factory lunchroom furniture. | b. | Salary of telephone receptionist in the sales
office. | c. | Salary of a security guard for the factory parking lot. | d. | Computer chips used by a
computer manufacturer. | ANS: B 18. Which of the following would most likely be a product cost?
a. | Salary of VP of sales. | b. | Advertising for a particular product. | c. | Drill bits for a drill press
used in the plant assembly area. | d. | Salary of the company receptionist. | ANS: C 19. The
document authorizing the issuance of materials from the storeroom is the: a. | materials requisition |
b. | purchase requisition | c. | receiving report | d. | purchase

Supply Chain Management Essay example
Supply Chain Management
Supply chain management lets an organization get their products of raw goods to the place they are
needed at the right time, the right place, and what exactly they have ordered, and at a reasonable
cost. It moves from parts supplier to manufacturers to wholesale to retailer then consumer. Supply
chain management plays an important role supplying the manufacturers all the way down to the
consumer, so they can satisfy their customers, and to have good benefits for their company, if the
supply chain management is managed good, they will have a good outcome for their company.
Supply chain management does involve some factors; location of facilities of where the goods will
be flowing from, production is another ... Show more content on Helpwriting.net ...
The procedures of this chain that takes place in a good way or efficient way they will make their
organization have a good outcome, and they will produce more customers.
Many or most of the companies that produce raw materials, products, are affected by the supply
chain management, once they have their supply chain going and the links of the chain are linked to
one another, they have a good outcome for their organization or company it does take planning and
implementing the applications to have a good flow going for your raw goods too, and materials to
get where they need to be. It is affected anytime during their producing of the materials or products.
There are mistakes in the supply chain management that can effect your supply chain management.
From one source they do have top ten mistakes running your supply chain management, listing.
Always viewing the supply chain as a "chain" believing that supply chain management is about
managing a chain, but its planning the whole chain, not just linking, trying to achieve your business
when your always doing business as usual when companies are to comfortable at where they are
knowing there are going to be changes or they have to do some rearranging for their market, and
being in their comfort zone, they have to face that their will be challenges among

Nestle's Supply Chain Management Definition In Operations...
Supply chain management definition in operations management text book explain that the
management of activities related to procuring materials and services, transforming them into
intermediate goods and final products, and delivering them through a distribution system. The
objective is to build a chain of suppliers that focus on maximizing value to the ultimate customer.
Nestlé had their own supply chain vision in which to achieve high level of customer satisfaction
through low cost, highly efficient operations that has been driven by value creation and continuous
improvement. Creating a continuous improvement culture that has been driven by performance
measures and reward are the one of the Nestlé supply chain mission. To ensure competitive ... Show
Nestlé in Pakistan should have own dairy farms near the factory. The advantages are more towards
employment opportunities for local people around that region. The transportation cost that incurs
from the collection centres to the factory can be reduced. Nestlé also should install Voice Picking
technology in warehouse. The benefits that can be gained from here to the future are reducing the
time and human errors include increasing the efficiency. The conclusion that we can make is, the
sustainability, compliance, "Farmer Connect" sourcing model contribute to the increase of the price
stability, farmer loyalty, sustainable production and consistent quality also on the quantity of the
food. Nestlé will keep maintaining its supply chain all over the country. The relationship that Nestlé
builds is not only among the customers but also among the suppliers, distributers and retailers.
Supply chain strategies that Nestlé followed for goods and services to be obtained from outside
sources are by negotiating with many suppliers and by rolling one supplier against another in Nestlé
Pakistan. Nestlé also had developed "keiretsu networks", Japanese term that describe the suppliers
who become part of the company coalition (Jay

Supply Chain Management Paper
Supply chains management (SCM) is one of popular concept in business administration both in
practical areas and academic discipline. Supply chains management can be seen as a response to the
changing of global market conditions. Level of uncertainty in almost every aspect of our life from
political to economy, from natural disaster to advance technology has lead massive changes in
global and local market. SCM then is one of the concepts used by both scholar and company to
overcome the challenge of recent drastic market change (paconsulting.com n.d.). In SCM, every
aspect and every party connected to the market should be considered as important players. The link
of the supply chains in modern world has become longer and more complex, ... Show more content
on Helpwriting.net ...
This challenging condition of global economy for 2014 that is remains unpredicted; SCM is become
more important in economic and business discussion. SCM will not only affect company's
organizational performance due to better management of its supply chain but also its competitive
advantage. Business consultant, scholars, business practitioners from small firms to MNC are
become more aware the importance of SCM (Li et al 2014).
Retail business or retail industry is one of the economic sectors that face challenging economic
conditions in 2014. Global economic conditions has lead to the decreasing of consumer's buying
power, thus, consumers now become more selective on spending their money. Retail business that is
connected directly with the end user should be more creative to attract consumer buying their goods
or services. Retail business's complex supply chains make it a perfect example of how a good SCM
will affect on company's performance in this challenging era.
Based on the brief background above, I purpose a research proposal about how supply chains
management process affect organizational performance and competitive advantage of a company
especially in retail business in Britain as the leader in world's retail industry. Literature Review
Supply Chain Management (SCM)
Supply chain management is a popular term in business administration

Dell Supply Chain Management Case Study
To what extent has Dell used supply chain management to gain and retain a competitive advantage
in the computer market? Corporate
Today many organizations are concerned with productivity and efficiency. In order to keep cost
down these organizations resort to the use of sophisticated electronics to run huge supply and
distribution network that enables the company to keep cost and prices at rock bottom, while delivery
extra ordinary products and services to their customers. In doing all of this Operations Management
must exist as well. According to Richard L.Daft. Operation Management can be formally defined as
the field of management that specializes in the production of goods and services and uses special
tools and techniques for solving ... Show more content on Helpwriting.net ...
According to ..............logistic management is the part of supply chain management that plans,
implements and controls the efficient, effective forward and reverse flow and storage of goods,
services, and related information between the point of origin and the point of consumption in order
to meet customer requirements. Logistic management is important in achieving Dell's objective. A
critical aspect of logistic management is managing inventory moving raw materials into the facility
and moving finished goods out to customers. Moving finished goods out to customers is known as
distribution. Distribution refers to the process through which goods and services go on their way to
customers. The faster and more accurate accompany can fill customers order , the lower the cost for
the organization the greater the likelihood that the customers will return .Dell uses a direct channel
of distribution. Logistics management helps to contain costs as it relates to transportation when it is
well coordinated. Example :when a customer orders a pc from Dell using the direct channel of
distribution a courier is contracted to deliver the product to the customer in a specified. With
logistics management a customer will be able to receive products ordered on

Improving The Manufacturing And Service Delivery Processes...
Abstract
Information technology utilized to improve the manufacturing and service delivery processes for
companies can deliver individually different products to different individual customers cost
efficiently is called mass customization. When product components are put together in a
modularized way, the mass customization can reduce the company's all in costs. The mass
customizing companies are driven by observing individual customer request and by comparing them
to what other customers have requested. As the demand for customizing products rise, companies
are offering build to order services to enable customers to configure products to their own needs.
Utilizing mass customization provides a better matching product to its customers liking as its chosen
customization level increases. However, if a company chooses not to use mass customization, they
may result in selling a standard product. Price customization can lead to a broader adoption of mass
customization, and the company can take advantage of their customized products. Cosmetic
customization presents a standard product differently to different customers. Transparent
customization provides each customer with a customized product without telling him or her about
the actual product itself.
Good services cannot come from processes alone. The important process for winning customer
loyalty is through customization. Mass customization is a process for customizing cost efficiently.
Companies can reduce its unit

Consumer Packaged Goods Industry
The Consumer Packaged Goods (CPG) Industry and Solution Providers
By Jay R. Jeffreys, PE; Director, Wonderware Solution Provider Programs
Table of Contents 1. The CPG Industry
................................................................................................................................... 3 2. Industry
Comparisons ........................................................................................................................... 4 3.
What CPG Companies Need from Solution Providers ................................................................ 5
Page 2
1.
The CPG Industry
The Wonderware Solution Provider Program currently ... Show more content on Helpwriting.net ...
The non–cyclical category includes beverages, tobacco, personal products, office supplies and food
items. The Industry Browser information tools at the Yahoo! Finance Industry Center
(biz.yahoo.com/p/3conameu.html) may surprise you in terms of the relative sizes and profitability of
some segments in the Consumer Goods categories. For instance, the top five segments by market
capitalization are as follows:
Page 4
Segment Auto manufacturers Food – major diversified Cigarettes Beverages – soft drinks
Cleaning products
Market Capitalization ($B) 296 281 269 266 205
The largest segments are not necessarily the most profitable, however. The top five segments by
overall profit margin are: Segment Cigarettes Cleaning products Beverages – brewers Beverages –

soft drinks Confectioners Net Profit Margin (%) 17 13 12 11 10
Somewhat surprisingly, the largest segment by market capitalization – Auto Manufacturers – is one
of the least profitable at just 1.8%. The sizable and highly visible – but keenly competitive –
Electronic Equipment category is squeezed down to just 2.5% overall net margin.
3.
What CPG Companies Need from Solution Providers
For our Consumer Packaged Goods customers to succeed, they must deal with a number of internal
and external pressures and demands. Those internal drivers include: Protecting or increasing profits

Logistics Activities, Concept And Technology
1.0 Introduction Logistics is that part of the supply chain process that plans, implements, and
controls the efficient, effective flow and storage of goods, services, and related information from the
point–of–origin to the point of– consumption in order to meet customers ' requirements (Enarsson,
2015). Simply put, logistic means moving product from one point to another in the most effective
way. The purpose of this assignment is to discuss the logistics activities, concept and technology
because I know logistics is very important that is why I want to write more about it and explain each
of the terms.
1.1 Importance of Logistics
What would the world be if there is no logistics? Logistics are very important because it contributes
about 10% of GDP, leads to higher level of employment, greater economic growth. Logistics is am
important component of GDP. That means the costs involve in logistics itself contributes to the
GDP. Logistics facilitates in getting products and services as and when they are needed and desired
to the customer. It also helps in economic transactions, serving as a major enabler of growth of trade
and commerce in an economy. Moreover, logistics has become an important component of GDP and
thus affects rate of inflation, interest rates, productivity, energy costs, currency valuation and
availability of investment capital. It also creates competitive advantage like place and time utility,
customer satisfaction, proprietary asset and so on. Competitive

Supply Chain Management within the Healthcare Sector
Supply chain management
With the aging of the population and the increasing developments of technology, healthcare facilities
are more and more pressured to provide high quality medical services. This increasing stress
associated with the changing needs of the population forces the healthcare providers to also develop
and to adjust their operations. Specifically, they are informally required to place an increased
emphasis on the administrative and business side of their operations. In this specific order of ideas,
the role of supply chain management increases (Uzsoy, 2005).
In a traditional setting, supply chain management would integrate the totality of operations and
processes which ensure that the product is created and delivered to the end consumer (Handfield,
2011). Within the setting of healthcare provision, the supply chain management would refer to the
totality of the operations which ensure that the medical act is created and delivered to the patient;
this medical act includes both the services of the medical teams, as well as the medical products
required, such as medical equipments, beds, MRI machines, or medicines.
At a primary level, the supply chain would be formed from the primary manufacturers, followed by
the secondary manufacturers, the distribution centers and the wholesalers. From the wholesalers, the
medical equipments and pharmaceuticals would be transmitted to hospitals and clinics. This supply
chain management in the healthcare industry is

Threats From Threat Of AYE
Threat of Substitutes
There are moderated threats from substitute of AYE. Supermarkets are still the best choice for
anyone who want to quickly buy good and high quality products. Even though other sellers are
selling the same products, which could make AYE loses some customers, but the products they sell
are in specific category, for example, Seven–Eleven is selling food and beverage specifically, and
others small products. Such that, it still lack of some products. Moreover, there are effects of online–
supermarkets, in terms of convenient purchasing. However, online–supermarket requires minimum
price in order to purchase products. Also, it has to deliver which means there will be shipping time.
So, overall, AYE is not affected much, because ... Show more content on Helpwriting.net ...
How to maintain current customers
Currently, there are many supermarkets and local retailers that have a lot of branches and continuing
to open the new branch every single day, thus, this will cause the competitiveness within the
supermarket industry, thus, the AYE needs to find the better way to manage and maintain the current
customers in order to keep them purchasing their products and it needs to be archived as soon as
possible.
Problem
Change Paper–base system
The main problem of the AYE in the current situation is the use of data management and storage.
AYE has been using paper–base system for storing important data and information which is too
inaccurate, inefficient, and time consuming. The system leads various troubles, such as, paper lost,
or deteriorated. Furthermore, it slow down other processes deliberately. For example, not even
delaying the ordering process, but also stock checking. Moreover, it is less efficiency when storing
data and information than using computer calculation. Such that, AYE should adjust the system
concerning the better performance of data

Relationship Between Buyer And Buyer
There are two main types of buyer and seller relationships. The buyer is the person or organisation
that purchases products from suppliers. A buyer could be a manufacturer purchasing raw materials
or a customer buying a finished product from a retailer. The relationship between the buyer and
seller can be either short term (once off or low commitment purchases) or long term, involving
regular purchases based on established agreements. The success of a good buyer seller relationship
is that they understand each other and have a good "fit". But who are the partners in the supply chain
relationship?? Raw material source The process starts with a supplier of raw materials that either
mines, harvests or collect the raw materials for manufacturer ... Show more content on
Helpwriting.net ...
That value can be based on services, quality, on–time deliveries, returns management, or some
combination of these. It's what makes buyers increase their percentage of purchases from individual
suppliers for the long run. This provides a double–edged benefit for suppliers: when a buyer
increases its purchase of a needed material or product or goods, this not only enhances the chosen
supplier's bottom line, but also negatively impacts the competition. Further, this increased
collaboration between supply chain buyer and seller leads to another valuable outcome: increased
efficiencies. The Longer the Collaboration, the Lower the Costs One of the greatest benefits from
long–term supply chain collaboration (and one that consistently delights operationally oriented
managers) are the cost savings that result from routine procedures over the life of the relationship.
When buyers and suppliers begin a relationship, there interactions often are fraught with
inefficiencies and expensive company legacy's , adding to the cost of doing business in year one. In
year two, however, procedures typically become more streamlined, issues in IT are worked through,
and interpersonal relationships between organizations become more

Research Paper On Supply Chain Management
Supply Chain Management Q1) In today's business environment, no enterprise can expect to build a
successful product, process, or service advantage without affiliating their strategies with those of the
supply chain system in which they are heavily linked. The literature examined for the purpose of this
essay identifies the many different definitions of Supply Chain Management and the overall
effectiveness of supply chain management to a business in the twenty first century. This essay also
highlights whether supply chain management is a passing fad or a fundamental change. There are
many definitions formed for supply chain management as there are many different perspectives for
the understanding of the concept from supply chain management: Supply chain management is the
management of a network of interconnected businesses involved in the ultimate provision of product
and service packages required by end customers [Harland 1996]. Hence, supply chain management
covers all the necessary movement and storage of raw materials, work–in–process inventory, and
finished goods from the point of origin to the point of consumption. According to Prof. Adithya
Ghose, a supply chain entails all activities associated with the flow and transformation of goods
from raw materials to end users. The concept of supply chain refers to the ... Show more content on
Helpwriting.net ...
As e–commerce continues to grow globally, customers have more options to order products than
ever before. Shipping options need to keep up to date with the demands of the marketplace, which
requires companies to adapt their supply chains to meet customers' needs and preferences. Whether
it be a small parcel or a bulk product, shipping in a quick and efficient manner is key to a business'
success. It is understood that supply chain management systems aid companies to determine the
optimal ways to ship while reducing costs to the lowest possible

Production Flow Process Of PT Adaro Indonesia
1. INTRODUCTION
PT Adaro Indonesia is one of the largest coal mining companies in Indonesia. Since those early
days, the Tabalong mine has grown to be the southern hemisphere's largest single–mine site, and
production has grown from an initial 1 million tons in 1992, with some years recording
extraordinary growth. In 2006, for example, Adaro Indonesia increased production by more than
28% from the previous year to 34.4 million tons. And it has product called "Envirocoal" to be
marketed in the world. This is a sub bituminous coal that has low levels of pollutants, including low
levels of ash, sulfur, and nitrogen And it has a reputation as one of the environmentally coal, as well
as solid fuel at the most cost effective.
Coal is produced from three mining pits (Tutupan, Paringin and Wara) located in South Kalimantan.
And it distributed to customers by road and river routes (fig.1). This requires a good coal chain
system [1]. One of it is "rom to port" operations using a double vessel trailer (fig.2). ... Show more
Very interesting to handle that is not as easy, because in "rom to port" operations has several internal
restrictions

Customer Benefits Package And Value Chain Analysis Essay
The aim of this case study is to define that how operational strategy, customer benefits package and
value chain analysis are all work simultaneously for manufacturing goods and providing better
services to their customers and how organizations earn huge profit by their goods and services.
Operations management is an integral part of all organizations. Basically operations management
has the responsibility of controlling number of tools like how to design new products, how to
manage its development. Operations management is responsible for fulfilling the demand of buyers
with the manufacturing and providing items on time to its customers. Companies cannot become
successful in any field if they do not use or follow the operations management strategies properly in
their business. Here discuss two organizations which are Samsung and Allphones. Samsung
Company manufacturing the goods whereas, Allphones Company provides the service to their
customers. Nowadays, Samsung electronics are becoming the second most famous and largest
company of mobile phones in the world. It is manufacturing many things like home Appliance,
tablets, computers, Laptops, TVs & AV, but here can be discussed only mobile phones or smart
phones. Operations management perform the task according to plan of the organization. According
to the manufacturing factory operations management would insure about design of products, correct
preservation, raw materials as well as it is also has responsible for managing

: Supply Chain Management Is Primarily of Interest to...
Overview
Supply chains are networks of organisations, information, technologies, activities and resources
involved in the movement and conversion of physical goods or services from suppliers to end
consumers. These different organisations are interlinked by physical, information and monetary
flows. Organisations create value by transforming raw products into finished goods or repositioning
of resources thru space and time, which is based on networks of supply chains. Both ways, it
involves the movement and conversion of physical goods and information throughout supply chains
across the world. Therefore organisations and supply chains are closely interlinked in the creation of
value for its customers. Manufacturing firms produce goods for ... Show more content on
Helpwriting.net ...
The timing of capacity changes also needs to be taken into consideration to achieve maximum
efficenty given that demands of their products varies with seasonal changes. The ability to react to
market demand changes quickly will determine manufacturers flexibility in keeping up with these
demands. Manufacturers needs facilities to produce, whether warehouses to store its raw materials
or finished goods, or manufacturing plants to produce their products. Services facilities are needed
by certain manufacturing industries such as consumer electronics to cater for returns. Distribution
centres also determine the efficenty of production distribution and un–nesessary inventory holding
will result in higher holding cost. Such facilities require large investments and are integral of the
manufacturer's supply chain strategy and thus proper planning is needed when making these
decisions regardong the size, location which affect the overall operations. How manufacturers run
their productions also determine how successful will they be in terms of productivity and quality
levels. Different types of equipment and processes also affect the cost and output of the
manufacturing plant. Information systems that flow both upstream and downstream affects the
forecasting, planning, inventory and production levels, they must be robust to ensure the
manufacturing firm is able to react accordingly to changing demands and variations. In addition to
their internal environment,

Bottleneck Theory
Principles of Inventory Management
MBA/550
September 02, 2006
Introduction
The purpose for this paper is to identify two principles of inventory management. An explanation on
how inventory management affects a businesses cash conversion cycle and cost of goods will be
covered. Next, supply chain components as they relate to the week four simulations will be
discussed. Lastly, an explanation of the bottleneck theory will be given along with two solutions on
how to resolve the bottleneck issue.
Inventory Management
Many companies who sell and provide merchandise for their customers more than likely house
inventory. Inventory management is important for an organization to help with the order in which
products are stocked, ... Show more content on Helpwriting.net ...
They eventually established more than 1,500 nationwide service routes offering hundreds of
products. In 1932, their Jewel Tea Company began a retail store division in Chicago with the
purchase of 70 stores from Loblaw Groceterias. Jewel merged with Osco Drug in 1961 and led the
industry in developing the food–drug combination store format. Through subsequent mergers with
American Stores in 1989 and with Albertsons in 1999, Jewel–Osco® maintained market leadership,
accounting for 40 percent of the supermarket business in the Chicago area (www.supervalu.com.)
The Bottleneck Theory
A simple definition of bottleneck could be an activity for which the work equals or exceeds the
capacity of the activity. For example, when company (a) places an order for raw materials from
company (b) who has a shortage on resources. And then companies (c, d, and f) order the same
material from company (b). There is what is called a bottleneck. This means that company (b) does
not have the resources to provide all companies with their orders. This is a problem for all parties
the supplier could potentially lose these customers as well as this profit. The buyers could lose their
customers and could effect the company's future business relations. Two solutions to prevent this
problem in the future could be an increase in resource shipping for example, doubling the norm of
shipping. Also, utilizing new options for shipping such as new ship

Supply Chain Logistics Essay
Logistics & Supply Chain Management
YourFirstName YourLastName
University title
Abstract
For any production and distribution to be successful, then it should be able to produce quality goods
and products. It should also ensure that the goods get to the customer in good condition and on time
among others. This is achieved through efficient and effective production and distribution logistics.
Customer orders may face delays in delivery and therefore not meeting customer satisfaction, which
could cause problems with customer retention. Analysis of data helps in coming up with the best
actions that a manager or a CEO should take. This paper seeks to discover the factors that affect
distribution in any given organization.
SECTION I: INTRODUCTION Hymur Limited deals with the production of coolers that are used
for outdoor picnics.That said, the production as well as distribution of these products are carried out
in a facility situated on the East Coast. Due to low density products and high shipment rates, the
company has challenges delivering and reaching the West Coast. Currently, the company ships
products from the East Coast center of distribution and the East Coast facility to the West Coast and
this is challenging. The company can adopt other alternatives such as giving a contract to another
company to do the distribution to the West Coast on its behalf or establish a production and a
distribution facility on the West Coast. Having multiple

Brief Introduction Of New Ivory
Brief introduction of New ivory
New ivory is company started in 2001 mainly focus on development and manufacture of fresh and
tasty sauce, gravies, dips and dressing. New ivory is a leader in UK in this food's growing market
and work with well known retailer of UK. Company's entire focus is on add value to customer in
each and all aspect whether it is the case of product design, process efficiency or any another
requirement. at new ivory, they listen carefully customer requirement and simultaneously add their
own detailed with customer requirement. Company believes in customer specific process, flexible
equipment and work with great approach that allow designing product in efficient manner.
During last 3 years there is massive increase ... Show more content on Helpwriting.net ...
Along with this proper business plan new packaging style is also a key area (Adam Jones, MD).
Business process of New Ivory
At new ivory there are major business process include finance, supply chain management, operation
and capacity management and quality assurance
Finance
In terms of finance point of view cost of sales increase in 2013 near around 8 %(New ivory
finanacial.pdf) compare to previous year which substantially reduce operation profit. Along with this
there is huge amount of increase in administration expense. Major factor that contribute to increase
administrative expense is salary of employee (John Newton, Finance Controller).
Biggest cost factor at new ivory is ingredients and packaging cost and it contributes near around
50% of total cost of company. Out of 21 million cost, raw material and packaging and ingredients
cost cover near around 11 million(John Newton, Finance Controller).in terms of subdivide in
package and raw material cost, packaging cost include near around 50% and raw material cost 40%
respectively. In terms to meet requirement of customer it is necessary for a company to stock
different type of packaging and it increase company's holding cost.
As per Mr. John "Waste is another major factor which increase cost for company". So as per my
point of view strong implementation of lean principle will be very effective and proper forecasting
of customer order and on the basis of forecasting planning

Intel's Value Chain
Intel's Value Chain
Since 1998, Intel has developed and used an e–business strategy to maintain relationships with its
customers, employees and suppliers. The company's goal is to become a 100% ‘e–business
enabled' corporation. In terms of the value chain concept, Intel has reaped tangible benefits in the
volume of business it does on the Web, as well as created savings of time and money for both itself
and its customers.
Intel's strategy in terms of the primary value chain activities:
Inbound Logistics: Intel used the traditional methods of pen, paper and telephone to place and track
its supplies and suppliers. Furthermore, it ordered supplies only in response to customer orders.
Today, Intel uses the Internet to speed the flow of ... Show more content on Helpwriting.net ...
Intel has established alliances with other leading software technology providers and solutions such
as Oracle and SAP to give added value to its customers.
Intel's strategy in terms of the secondary value chain activities:
Procurement: More than 50 of Intel's most important material suppliers have online access to
confidential engineering and product–specification documents, reducing the amount of time it takes
to design products and get answers about Intel's needs. Using a "vendor–managed inventory
process," allows Intel to accurately reconcile its suppliers' inventory on hand, materials in transit,
and shipment projections with a customer's shop–floor consumption rate. The process has given
Intel more–accurate forecasting data and allowed the company to respond faster to demand
fluctuations.
Technology development: The RosettaNet business process standards used in conjunction with
XML forms is the heart of the technology that allows Intel to build more efficient links with its
suppliers and customers. There are as many as 1,000 customers and suppliers that might benefit
from doing business with Intel through RosettaNet, though many customers will still be working
with Intel through existing EDI systems or browser–based interfaces for the next few years.
Human resource management: At Intel, the emphasis is on hiring and retaining talent from

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