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Supply Chain
Operations
MAKING AND DELIVERING
SC
Operations
Plan
Source
Make
Deleviry
Product Design (Make)
Fewer parts, Simple Design, Modular Construction from generic sub-assemblies.
Supply chain Role:
◦ F...
Complicated Product Design
Simple Product Design
Product with high responsiveness
and competitive cost
Manufacturing
Procurement
Design
Production Scheduling (Make)
The Goal is to use available capacity
(Equipment, labor, Facilities) in the most efficient an...
High Utilization
Rates
High levels of
Customer Service
Low levels of
inventory
Objectives of Production Scheduling
• Long ...
Scheduling a multi-product production
facility
Determine the
economic lot
size for the
production runs
of each product
Set...
Run out time
R= P/D
R= run out time
P= number of units of product on hand
D= product demand in units for a day or week
Facility Management (Make)
All facility management decisions happen within the constraints set by decisions about facility...
Order Management (Deliver)
Process of passing order information from customers back
through the supply chain from retailer...
Four Rules of Efficient Order
Management
1. Enter the order Once and Only Once
◦ once—Capture the data electronically as c...
Delivery Scheduling (Deliver)
The delivery scheduling process works within the
constraints set by transportation decisions.
Types of Delivery Scheduling
1. Direct Deliveries
2. Milk Run Deliveries
1. The savings matrix technique
2. The generalize...
Direct Deliveries
Location
Location
Milk Run Deliveries
Originated Location Location
Location
Location
Location
Location
Location
Location
OR
Delivery Sources
1. Single product locations
2. Distribution centers
Single product locations
Location
Location
Location
Customer
Distribution centers
Location
Location
Location
Center Customer
Crossdocking
Thanks
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Supply chain operations (Making and Delivering)

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Supply chain operations (Making and Delivering)

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Supply chain operations (Making and Delivering)

  1. 1. Supply Chain Operations MAKING AND DELIVERING
  2. 2. SC Operations Plan Source Make Deleviry
  3. 3. Product Design (Make) Fewer parts, Simple Design, Modular Construction from generic sub-assemblies. Supply chain Role: ◦ Flexible ◦ Responsive ◦ Efficient
  4. 4. Complicated Product Design
  5. 5. Simple Product Design
  6. 6. Product with high responsiveness and competitive cost Manufacturing Procurement Design
  7. 7. Production Scheduling (Make) The Goal is to use available capacity (Equipment, labor, Facilities) in the most efficient and profitable manner.
  8. 8. High Utilization Rates High levels of Customer Service Low levels of inventory Objectives of Production Scheduling • Long production runs, • Centralized Manufacturing • Distribution Facilities • Many short production runs • High inventory levels • Short Production runs • JIT Delivery of raw materials
  9. 9. Scheduling a multi-product production facility Determine the economic lot size for the production runs of each product Set the right sequence of production runs for each product Scheduling 1 2 3 6 5 4 8 9 9
  10. 10. Run out time R= P/D R= run out time P= number of units of product on hand D= product demand in units for a day or week
  11. 11. Facility Management (Make) All facility management decisions happen within the constraints set by decisions about facility locations. Decisions in three areas : 1. The role each facility will play 2. How capacity is allocated in each facility 3. The allocation of suppliers and markets to each facility
  12. 12. Order Management (Deliver) Process of passing order information from customers back through the supply chain from retailers to distributors to service providers and producers Customer Retailers Distributer Service Provider Producers
  13. 13. Four Rules of Efficient Order Management 1. Enter the order Once and Only Once ◦ once—Capture the data electronically as close to its original source as possible and do not manually reenter the data as it moves through the supply chain. 2. Automate Order Routing ◦ Manual intervention should be minimized for the routing and filling of routine orders. 3. Make order status Visible ◦ Let customers track their orders through all the stages from entry of the order to delivery of the products. 4. Use integrated Order management systems
  14. 14. Delivery Scheduling (Deliver) The delivery scheduling process works within the constraints set by transportation decisions.
  15. 15. Types of Delivery Scheduling 1. Direct Deliveries 2. Milk Run Deliveries 1. The savings matrix technique 2. The generalized assignment technique
  16. 16. Direct Deliveries Location Location
  17. 17. Milk Run Deliveries Originated Location Location Location Location Location Location Location Location OR
  18. 18. Delivery Sources 1. Single product locations 2. Distribution centers
  19. 19. Single product locations Location Location Location Customer
  20. 20. Distribution centers Location Location Location Center Customer Crossdocking
  21. 21. Thanks

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