Chopra Scm5 Ch01

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    Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall . 1-1

    Course Code MGT 561

    Supply Chain Management

    Book: Supply Chain anage!ent Strategy,

    Planning, and "peration

    5th

     edition (earson u!lishing" #uthor: Sunil Chopra and eter Meindl

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    Course Strategi& 'utline

    1. Building a strategi& rame)ork to analy*e supply &hains

    $. +esigning a supply &hain net)orks%. lanning and &oordinating demand and supply in

    supply &hain

    ,. lanning and managing inentories in a supply &hain5. +esigning and planning transportation net)orks

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    PowerPoint presentation to accompany 

    Chopra and Meindl Supply Chain Management, 5e

    1-,

    Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall .Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall .Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall .

    1-,

    Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall .

    1-,

    Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall .

    1-,

    Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall .

    nderstanding theSupply Chain

    1

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    /earning '!0e&ties

    1. +is&uss the goal o a supply &hain and eplainthe impa&t o supply &hain de&isions on thesu&&ess o a irm.

    $. 2dentiy the three key supply &hain de&isionphases and eplain the signii&an&e o ea&hone.

    %. +es&ri!e the &y&le and push3pull ie)s o asupply &hain.

    ,. Classiy the supply &hain ma&ro pro&esses in airm.

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    4hat is a Supply Chain (13%"

     #ll stages inoled7 dire&tly or indire&tly7 inulilling a &ustomer re8uest

    2n&ludes manua&turers7 suppliers7 transporters7)arehouses7 retailers7 and &ustomers

    4ithin ea&h &ompany7 the supply &hain in&ludesall un&tions inoled in ulilling a &ustomerre8uest #product de$elop!ent, !ar%eting, operations,distribution, &inance, custo!er ser$ice'

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    4hat is a Supply Chain ($3%"

    Customer is an integral part of the supplychain

    2n&ludes moement o produ&ts rom suppliers tomanua&turers to distri!utors and inormation7unds7 and produ&ts in !oth dire&tions

    May !e more a&&urate to use the term supplynetwork; or supply web;

    Typical supply chain stages: &ustomers7retailers7 distri!utors7 manua&turers7 suppliers  #ll stages may not be present in all supply

    &hains (e.g.7 no retailer or distri!utor or +ell"

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    4hat is a Supply Chain (%3%"

    =igure 1-1 Stages o a detergent supply &hain

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    =lo)s in a Supply Chain

    =igure 1-$ Supply &hain stages

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    The '!0e&tie o a Supply Chain (13%"

    Maimi*e oerall alue &reated

    +isaster supply &hains

    Supply Chain Surplus( Custo!er )alue * Supply Chain Cost 

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    The '!0e&tie o a Supply Chain($3%" @ample: a &ustomer pur&hases a )ireless

    router rom Best Buy or A6? (reenue"

    Supply chain incurs costs (inormation7storage7 transportation7 &omponents7 assem!ly7et&."

    +ieren&e !et)een A6? and the sum o all othese &osts is the supply &hain proit

    Supply &hain proita!ility is total proit to !eshared a&ross all stages o the supply &hain Success should be measured by total supply

    chain profitability7 not proits at an indiidual

    stage

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    The '!0e&tie o a Supply Chain(%3%"

    Customer the only sour&e o reenue Sources of cost include, lo)s o

    inormation7 produ&ts7 or unds !et)eenstages o the supply &hain

    @e&tie supply &hain management is themanagement o lo)s between andamong the supply &hain stages tomaimi*e total supply &hain surplus

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    2mportan&e oSupply Chain +e&isions Cases

    4al-Mart7 A1 !illion sales in 1>

    +ell7 A56 !illion in $??67 adopted ne) supply&hain strategies

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    +e&ision hases o a Supply Chain

    Supply &hain strategy or design  Eo) to stru&ture the supply &hain oer the

    net seeral years

    Supply &hain planning  +e&isions oer the net 8uarter or year 

    Supply &hain operation  +aily or )eekly operational de&isions

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    Supply Chain Strategy or +esign

    +e&isions a!out the stru&ture o the supply &hainand )hat pro&esses ea&h stage )ill perorm Strategi& supply &hain de&isions

      /o&ations and &apa&ities o a&ilities

      rodu&ts to !e made or stored at arious lo&ations

      Modes o transportation

      2normation systems

    Supply &hain design must support strategi&o!0e&ties

    Supply &hain design de&isions are long-term andepensie to reerse must take into a&&ountmarket un&ertainty

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    Supply Chain lanning (13$"

    +einition o a set o poli&ies that goernshort-term operations

    =ied !y the supply &oniguration rompreious phase

    Starts )ith a ore&ast o demand in the&oming year 

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    Supply Chain lanning ($3$"

    lanning de&isions:  4hi&h markets )ill !e supplied rom )hi&h lo&ations

      lanned !uildup o inentories

      Su!&ontra&ting7 !a&kup lo&ations  2nentory poli&ies

      Timing and si*e o market promotions

    Must &onsider in planning de&isions demandun&ertainty7 e&hange rates7 &ompetition oerthe time hori*on

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    Supply Chain 'peration

    Time hori*on is )eekly or daily +e&isions regarding indiidual &ustomer orders Supply &hain &oniguration is ied and operating

    poli&ies are determined

    Goal is to implement the operating poli&ies asee&tiely as possi!le

     #llo&ate orders to inentory or produ&tion7 set

    order due dates7 generate pi&k lists at a)arehouse7 allo&ate an order to a parti&ularshipment7 set deliery s&hedules7 pla&ereplenishment orders

    Mu&h less un&ertainty (short time hori*on"

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    ro&ess Fie) o a Supply Chain

    Cycle )ie+ : pro&esses in a supply &hain arediided into a series o &y&les7 ea&h perormedat the intera&es !et)een t)o su&&essie supply

    &hain stages PushPull )ie+ : pro&esses in a supply &hain are

    diided into t)o &ategories depending on)hether they are ee&uted in response to a

    &ustomer order ( pull " or in anti&ipation o a&ustomer order ( push"

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    Cy&le Fie)

    o SupplyChainro&esses

    =igure 1-%

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    ush3ull Fie) o Supply Chains

    =igure 1-5

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    ush3ull Fie) oSupply Chain ro&esses

    Supply &hain pro&esses all into one o t)o&ategories depending on the timing o theiree&ution relatie to &ustomer demand

    ull: ee&ution is initiated in response to a&ustomer order (rea&tie"

    ush: ee&ution is initiated in anti&ipation o

    &ustomer orders (spe&ulatie" ush3pull !oundary separates push pro&essesrom pull pro&esses

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    ush3ull Fie) oSupply Chain ro&esses

    seul in &onsidering strategi& de&isions relatingto supply &hain design more glo!al ie) oho) supply &hain pro&esses relate to &ustomer

    orders The relatie proportion o push and pull

    pro&esses &an hae an impa&t on supply &hainperorman&e

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    ush3ull Fie) +ell

    =igure 1-9

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    Supply Chain Ma&ro ro&esses

    Supply &hain pro&esses dis&ussed in thet)o ie)s &an !e &lassiied into

      Customer elationship Management (CM"  2nternal Supply Chain Management (2SCM"

      Supplier elationship Management (SM"

    2ntegration among the a!oe three ma&ropro&esses is &riti&al or ee&tie andsu&&essul supply &hain management

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    Supply Chain Ma&ro ro&esses

    =igure 1-<

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    @amples o Supply Chains eading assignment

    Gate)ay and #pple Hara

    4.4. Grainger and M&Master-Carr  Toyota #ma*on