Premium Essay

Designing and Managing the Supply Chain

In: Business and Management

Submitted By yscs
Words 12407
Pages 50
Designing and Managing the Supply Chain
David Simchi-Levi Philip Kaminsky Edith Simchi-Levi

Solutions for Discussion Questions1
Kerem B¨lb¨l u u

1

We would like to thank Shiming Deng for his valuable contributions to the preparation of this manual.

Chapter 1

Introduction to Supply Chain Management
Discussion Questions
Question 1
Pick any car model manufactured by a domestic auto maker. For example, consider the 2002 Ford Thunderbird. a. The supply chain for a car typically includes the following components: 1. Suppliers for raw materials 2. Suppliers for parts and subsystems 3. Automobile manufacturer (Ford, in this example). Within a company, there are also different departments, which constitute the internal supply chain: i. Purchasing and material handing ii. Manufacturing iii. Marketing, etc. 4. Transportation providers 5. Automobile dealers b. Many Þrms are involved in the supply chain. 1. Raw material suppliers. For instance, suppliers for steel, rubber, plastics, etc. 2. Parts suppliers. For instance, suppliers for engines, steering wheels, seats, and electronic components, etc. 3. Automobile manufacturer. For instance, Ford. 4. Transportation providers. For instance, shippers, trucking companies, railroads, etc. 5. Automobile dealers. For example, Hayward Ford. c. All companies involved in the supply chain want to maximize their respective proÞts by increasing revenue and decreasing cost. However, companies may employ different 2

strategies in order to achieve this goal. Some of them focus on customer satisfaction and quick delivery, while others may be more concerned about minimizing inventory holding costs. d. In general, different parts of the supply chain have objectives that are not aligned with each other. 1. Purchasing: Stable order quantities, ßexible delivery lead times and little variation in mix. 2. Manufacturing: Long…...

Similar Documents

Premium Essay

Mgt 420 (Managing Quality in the Supply Chain)

...MGT 420 (Managing Quality in the Supply Chain) Course Assignments Week 1- 5 Click to Download Week 1 Exit Assessment Week 1 Individual Assignment; Role of Stakeholder Paper Week 2 LT Assignment Part I; BJB Manufacturing Company Quality Management Initiative Proposal Week 3 Individual Assignment; Theory Matrix Week 4 LT Assignment; Part II & III BJB Manufacturing Company Quality Management Implementation Strategy Week 5 Individual Assignment; Quality Management Organizations Week 5 LT Assignment; Part IV: BJB Manufacturing Company Quality Management Supplier Alliance Metrics Report MGT 420 Week 5 Final Examination (42 Multiple Choice) MGT 420 Final Exam Click to Download 1) If you select a physician solely on the reputation of the physician, you are basing your decision of which of the following dimensions of service quality? 2) Which of the following is the most traditional definition of quality? 3) Like engineers, operations managers are very concerned about product and process design. However, rather than focusing on only the technical aspects of those activities, operations concentrates on the __________ of these activities. 4) Which of the following is not an example of a strategic content variable? 5) The role of marketing in design has been to bring the voice of the __________ into the design process. 6) __________ is the process by which a leader influences a group to move toward the attainment of superordinate......

Words: 826 - Pages: 4

Premium Essay

Supply Chain

...A systems perspective on supply chain measurements Stefan Holmberg The Authors | Stefan Holmberg, Division of Logistics, Lund University, Sweden Abstract | Both practitioners and research scientists have noted a number of problems regarding measurement activities during the past decade. The problems reported suggest that measurement activities are fragmented both within and across organizations. Expands on a systems perspective on supply chain measurements and describes how problems can be communicated, understood and managed by developing methods and tools for describing interrelationships within supply chains. Empirical evidence from a case study of a Swedish home furnishing business supply chain provides data suggesting that firms within a supply chain cannot simply be categorized as either having adopted systems thinking or not. Rather, both structured models indicating a high degree of systems thinking, and problems showing fragmentation, are present. A performance model, which is used to reflect the systemic structure of an underlying supply chain and a potential integrator, is introduced and suggested as the focus of future research initiatives within supply chain measurements. Article type: case study. Keywords: Supply chain, Measurement, Systems integration, Performance measurement. Content Indicators: Research Implications** Practice Implications** Originality** Readability** International Journal of Physical Distribution & Logistics......

Words: 8785 - Pages: 36

Premium Essay

Supply Chain

.................................................... 12 Appendix A: Research Methodology .................................................................. 13 Appendix B: Related Aberdeen Research & Tools ............................................. 14 About AberdeenGroup ...................................................................................... 15 All print and electronic rights are the property of AberdeenGroup © 2005. AberdeenGroup The New Product Development Business Value Research Series Figures Figure 1: Ability to Meet Product Development Targets........................................2 Figure 2: Product Innovation Capabilities to Increase Revenue...........................5 Figure 3: Competitive Framework – Managing for Product Innovation Success ..9 Figure 4: Enabling Product Innovation Success................................................. 10 Tables Table 1: Benefits of Improved Product Innovation ................................................4 All print and electronic rights are the property of AberdeenGroup © 2005. AberdeenGroup The New Product Development Business Value Research Series Chapter One: Issue at Hand berdeen’s Product Innovation Agenda benchmark report evaluated the product innovation, product development, and engineering performance of manufacturers to determine the actions they are taking, business capabilities they are pursuing, and technical enablers they are using to contribute to their corporate product......

Words: 5072 - Pages: 21

Premium Essay

Supply Chain

...--·-- - - -- - O N -- SU PP LY CH AI N MA NA GE ME NT Stra tegy , Plan ning , and Ope ratio n Sunil Chopra Kellogg Schoo l of Manag ement Northwestern University Peter Meindl Stanfo rd University --------Prentice I-I all Uppe r Saddl e River , New Jersey ·--· PEAR SON -- · - · - - - "ibrary of Congress Cataloging-in-Publication Data :::hopra, Sunil Supply chain management: strategy, planning, and operation I Sunil Chopra, >eter Meind!.-3rd ed. p. em. Includes bibliographical references and index. ISBN: 0-13-208608-5 1. Marketing channels-Managemen t. 2. Delivery of goods-Management. i. Physical distribution of goods-Management. 4. Customer servicesvfanagement. 5. Industrial procurement. 6. Materials management. I. vfeindl, Peter II. Title. HF5415.13.C533 2007 658.7-dc22 2006004948 \VP/Executive Editor: Mark Pfaltzgraff ii:ditorial Director: Jeff Shelstad ;enior Project Manager: Alana Bradley E:ditorial Assistant: Barbara Witmer Vledia Product Development Manager: Nancy Welcher \VP/Executive Marketing Manager: Debbie Clare Vlarketing Assistant: Joanna Sabella ;enior Managing Editor (Production): Cynthia Regan flroduction Editor: Melissa Feimer flermissions Supervisor: Charles Morris Vlanufacturing Buyer: Michelle Klein Vlanager, Print Production: Christy Mahon Composition/Full-Service Project Management: Karen Ettinger, TechBooks, Inc. flrinter/Binder: Hamilton Printing Company Inc. fypeface: 10/12 Times Ten Roman :::redits and acknowledgments......

Words: 138607 - Pages: 555

Premium Essay

Designing a Supply Chain Operations Plan”

...PROJECT QUESTION THREE: “Develop a supply chain operations plan for a hypothetical new enterprise, based on information about real-world resources, vendors and customers. Justify the design”. COMPANY’S NAME: FLETCHER DELIVERY SERVICES (FDS) TABLE OF CONTENTS 1.0 Introduction 2.0 Problems 3.0 Purpose of Supply Chain Strategy 4.0 Goals of the Company (FDS) 5.0 Strategic Vision 6.0 Strategic Mission 7.0 Corporate or Company’s Vision 8.0 Abstract 9.0 Developing a Strategic Supply Chain Operations Plan 10.0 Components of the Plan 11.0 Implementations of Defined Strategies 12.0 Avoiding Business Failures 13.0 Recognizing Organization Challenges 14.0 Conclusions 15.0 References 1.0 INTRODUCTION FLETCHER DELIVERY SERVICES (FDS) has just gone into business of parcel and package courier delivery service. Before the coming of FDS, deliveries are not on time, parcels and packages are poorly handled without proper care and the security of packages. The company needs a Supply Chain Operations Plan so as to be able to compete and even have a competitive advantage over the existing delivery companies. There is a need for putting in place, a Supply Chain Strategy that will be interactive enough as to be able to constantly evaluate all the operational components including the costs, the benefits and the trade-offs (Happek, 2005). There is going to be in place a Business Strategy (BS) for FDS that among other things, will prompt its core competencies into......

Words: 2791 - Pages: 12

Premium Essay

Managing Uncertainty in a Supply Chain

...2014/11/20 Why do we need inventory? 1 WE  IE  Managing economics of scale in a SC  Cycle inventory (Ch 11)  Managing uncertainty in a SC  Safety inventory and risk polling (Ch 12, 13) 2 WE  IE 1 2014/11/20 Managing Uncertainty in a Supply Chain — Safety Inventory Chapter 12 Wen‐Chih Chen Dept. of Industrial Engineering & Management National Chiao Tung University, TAIWAN 3 WE  IE Safety Inventory  Safety inventory is carried to satisfy possible demand that exceeds the amount forecasted. 4 WE  IE 2 2014/11/20 Determining the Safety Stock Level Safety inventory uncertainty uncertainty Supply Demand Performance: availability (responsiveness), costs (efficiency) 5 WE  IE Key Decisions    What is the appropriate level of product availability? How much safety inventory is needed for the desired level of product availability? What actions can be taken to improve product availability while reducing safety inventory? 6 WE  IE 3 2014/11/20 Measuring Product Availability  Product fill rate (fr)  % of product demand satisfied from product in inventory % of orders filled from available inventory % of replenishment cycles that end with ALL customer demand being met  Order fill rate   Cycle service level (CSL)  7 WE  IE Measuring Demand Uncertainty   : avg. demand @ period i......

Words: 1560 - Pages: 7

Premium Essay

Supply Chain

...Map the Supply Chain Lydia Federico MKT/421 November 24, 2014 Richard Theroux Map the Supply Chain The area of business that had decided to research is the world of perfumes and colognes industry. When discussing the supply chain of perfumes and colognes production, it is important to discuss both their "brick and mortar" facilities and their organizational web sites. Both the "brick and mortar" facilities and the web sites play a vital role in the success of modern day fragrances industry, so it is important to discuss both. First, the "brick and mortar" environment supply chain.  Describing the supply chain of a traditional "brick and mortar" perfume industry is very similar to explaining the supply chain of a typical business-to-consumer organization. The suppliers provide the materials to create the samples for each fragrance and cologne to be created at different laboratories. The laboratories have the main responsibility of manufacturing the fragrance substances, the formulation of fragrance compounds, the mixing of fragrance substances into fragrance compounds, the formulation of fragranced end-products. They are also responsible for Industrial and professional end-use of washing and cleaning products as well as end-use of polishes and wax blends. All of this needs to be done in order for the fragrances to be safe for the consumer and also for the environment. “The use is considered safe. If the same target is exposed to one substance through......

Words: 797 - Pages: 4

Premium Essay

Supply Chain

...Lacey Edwards Memorial University OF NEwfoundland Student Number: 201135217 Lacey Edwards Memorial University OF NEwfoundland Student Number: 201135217 Inventory Essay Business 6415 – Supply Chain Management Inventory Essay Business 6415 – Supply Chain Management Risk pooling is a powerful tool that addresses the variability in the supply chain because it suggests that demand uncertainty can be reduced if a company combines the demand uncertainty from across locations into one. This theory is based on the fact that high demand from one customer will be offset by low demand from another and likewise. As well, this may impact the average inventory because the demand variability may cause a decrease in safety stock (Piramanayagam, 2009). This report will provide a general overview of risk pooling which will include several types of risk pooling, three critical points of risk pooling, as well as examples where risk pooling is critical during supply chain decision making. Piramanayagam (2009) suggests that the concept behind risk pooling is to redesign the supply chain through the production process or product in order to reduce the demand uncertainty or facilitate a company’s needs when dealing with demand uncertainty and there are several types of risk pooling that allows a company to accomplish this: lead-time pooling, capacity pooling, product pooling, and location pooling. Lead-time pooling is when lead-time is reduced by introducing a distribution center closer...

Words: 955 - Pages: 4

Premium Essay

Managing Sustainable Supply Chain in Mcdonald

...implicit compact that was about protection, autonomy and entitlement. How can management change the psychology of the physicians that they can do whatever they like because they are protected by the administration? Conclusion: Since implementing the TQM management model has both upsides and downsides, management should implement TQM considering the downsides too. In my view, VMCC should standardize the work process so that it can reduce waste and save time. It can also give some autonomy to physicians as a team in special cases. Another conclusion focuses on reducing the cost of the company. I think Management can consolidate less profitable service lines, but with proper caution so that this decision does not affect the entire value chain activities. Last conclusion focuses on how to change the psychology of the physicians from emotional retreat. Management can review the performance of the physicians, group effort, group participation and respect for other members. It can also consider one or two incompetent group members too, so that one of the team members within the group cannot destroy whole team effort. Analysis: VMCC executives think that TQM is a bunch of administrative teams meeting, deciding on new processes or better ways of doing things and handing the responsibility down to the rest of the employees. Kaplan, the CEO of VMCC, took several strategies to implement the model. The first strategy is Value stream mapping in which activities such as patient check......

Words: 901 - Pages: 4

Premium Essay

Supply Chain

...International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 2, June 2015 ISSUES AND CHALLENGES IN THE SUPPLY CHAIN OF FRUITS & VEGETABLES SECTOR IN INDIA: A REVIEW Saurav Negi1 and Neeraj Anand2 1 Doctoral Research Fellow, Centre for Continuing Education, University of Petroleum and Energy Studies, Dehradun, India 2 Professor and Head (LSCM & Operations), College of Management and Economic Studies, University of Petroleum and Energy Studies, Dehradun, India ABSTRACT Purpose- The entire supply chain of Fruits and Vegetables in India is laden with various issues and challenges. To list the possible challenges and suggest a way forward, there is a need to study the supply chain of Fruits and Vegetables sector in India. So the purpose of this paper is to discuss the supply chain of fruits and vegetables sector in India and explain the issues which are affecting it. Authors also suggested the corresponding mitigation strategies to overcome the identified issues and challenges. Design/methodology/approach-Descriptive research has been used for this study. The supply chain of Fruits and Vegetables sector has been explained and attempt has been made towards identifying the issues affecting the supply chain of the sector. The present study undertakes a thorough review of basic and contemporary literature available and tries to explain the factors affecting the supply chain of Fruits and Vegetables sector in India. The literature has been......

Words: 6133 - Pages: 25

Premium Essay

Supply Chain

...CHAPTER TWO  Supply Chain Management Chapter 2 Supply-Chain Management PROBLEMS 1. Buzzrite Company a. Current Year’s average aggregate value = $48,000,000/6 = $8,000,000 Next year’s average aggregate inventory value = ($48,000,000 × 1.25)/6 = $10,000,000 Increase in the average aggregate inventory value = ($10,000,000 – 8,000,000) = $2,000,000 b. Number of turns to support next year’s sales with no increase in inventory value = (1.25)(6) = 7.5 turns. Thus, the change in inventory turnover = new – old = 1.5 inventory turns, or 25% higher inventory turns. 2. Precision Enterprises. Average aggregate inventory value = Raw materials + WIP + Finished goods = $3,129,500 + $6,237,000 + $2,686,500 = $12,053,000 a. Sales per week Weeks of supply b. Inventory turnover 14 = Cost of goods sold/52 weeks per year = $32,500,000/52 = $625,000 = Average aggregate inventory value/ Weekly sales = $12,053,000/$625,000 = 19.28 wk = (Annual sales)/(Average aggregate inventory value) = $32,500,000/$12,053,000 = 2.6964 turns/year CHAPTER TWO  Supply Chain Management 3. Sterling Inc. a. Average Inventory (units) Part Number RM-1 RM-2 Value ($/unit) 20,000 5,000 RM-3 RM-4 WIP-1 WIP-2 FG-1 FG-2 1.00 5.00 3,000 1,000 6,000 8,000 1,000 500 44,500 Total Value ($) 20,000 25,000 6.00 8.00 10.00 12.00 65.00 88.00 18,000 8,000 60,000 96,000 65,000 44,000 336,000 Average aggregate......

Words: 15067 - Pages: 61

Premium Essay

Supply Chain

...business model analysis in only a handful of studies. A firm’s tangible, intangible and human resources enable firm and managerial actions. Managing firm resources is yet another critical management task, described here as resource modeling. Rational management of firm resources follows the logic that the 6 resources must be valuable, i.e. as a source of firm competitive advantage, appropriable, and sustainable.11 The fourth critical management task in developing a business is financial modeling. Managers define revenue models, cost drivers and capital asset models to measure what they manage as well as manage what they measure. Underlying those metrics is the logic that explains why a firm makes a profit. If there is one thing that is shared across all business model definitions and between those definitions and the strategic management literature, it is how a firm captures the residual value from its offerings, activities, and resources. The logics for financial modeling are premium pricing, cost leadership, and asset flexibility.12 To summarize, the business model framework briefly described above divides a business model into four component models, in order to address the key aspects of management thoughts and actions in designing and developing a business. When the central purpose of a business is economic profit, managing those components should follow a number of logics, also mentioned in the framework. These logics are informed by the widely......

Words: 4310 - Pages: 18

Premium Essay

Apple Inc.: Managing a Global Supply Chain

...rP os t W14161 APPLE INC.: MANAGING A GLOBAL SUPPLY CHAIN 1 Ken Mark wrote this case under the supervision of Professor P. Fraser Johnson solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. op yo This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation INTRODUCTION Version: 2014-06-12 tC Jessica Grant was an analyst with BXE Capital (BXE), a money management firm based in Toronto. 2 It was February 28, 2014, and Grant was discussing her U.S. equity mandate with BXE’s vice president, Phillip Duchene. Both Grant and Duchene were trying to identify what changes, if any, they should make to BXE’s portfolio. “Apple is investing in its next generation of products, potentially the first new major product lines since Tim Cook took over from Steve Jobs,”......

Words: 11092 - Pages: 45

Premium Essay

Supply Chain

...Course Title : Supply Chain Management Course Code : BUS 306 Year of Study : 3 Number of Credits : 3 credits Duration in Weeks : 15 weeks Contact Hours Per Week : Lecture (2.0 hours) Tutorial (1.0 hour) Pre-requisite Course(s) : Nil Course Aims This course aims to provide students with a clear, well-structured and comprehensive understanding of basic concepts and principles of supply chain management. The course will highlight the very important role of supply chain management in creating customer values, and how it plays in today’s global business world. Besides, this course also presents the strategic context in which supply chain managers work. Teaching Approach Both lectures and tutorials will be used. Lectures are designed to introduce the topics and develop students’ understanding of the materials. Tutorials are designed to consolidate what students have learned in the lecture and help them to apply the theories in relevant situations. Participation of students will be vital to the learning process. Current issues in the business fields related to supply chain management will be used extensively to illustrate the practical aspects of the course. Resources Principal Reading 1. Chopra S. & Meindl P., Supply Chain Management – Strategy, Planning, and Operation, Fourth Edition, New Jersey: Pearson Education, 2010. Supplementary Reading: 1. Bozarth, C. & Hanfield, R., Introduction to Operations and Supply Chain......

Words: 853 - Pages: 4

Premium Essay

Supply Chain

...In today’s competitive SCM market, it’s not so much about having the best company anymore, but more importantly who has the supply chain, and who can get the product out to meet standards of the customer? Supply chain managers are continuously faced with this major challenge from the top of their supply chain operations to the bottom. Effective supply chain management of an enterprise reduces costs, lead times, and inventories throughout the entire supply chain. Customers want the ‘perfect orders’ and expectations to reduce manufacturing costs put corporate supply chains under immense pressure. As a result, supply-chain management and infrastructure plays a significant role in organizational strategy and how a facility chooses to set up their operation. A. Analyze whether a Keiretsu network (Keiretsu: a Japanese term that describes suppliers who become part of a company coalition), a virtual company, a vertical integration, or a different supply chain strategy should be adopted. A virtual company strategy would not work for this type of operation because “vertical integration is counter to the benefits of specialization” (Heizer and Render, 2010). In this model of supply chain, the demands of more specialized products exist and there is more flexibility to waiver from centralized suppliers than Keiretsu or vertical integration offers. Much of This “fluidity” may allow for too much variability within and there is no sustainability as contracts can be short......

Words: 1235 - Pages: 5