In the today's dynamic business environment, successful supply chain partners are those who have comprehensive and robust strategies by which they can appropriately respond to an uncertain environment. Inherent uncertainties and various risks in the economic environment of a supply chain network will have some considerable effects on different operations of the every supply chain. Therefore a robust supply chain strategy will ensure that supply chain activities of different stakeholders are aligned with business priorities and support customer promise. This paper aims at robust optimization of single-product for multi-echelon supply chain architecture consisting of production plants, distribution centers (DCs) and customer zones (CZs). The …show more content…
Outsourcing can truly be labeled as a key feature of today’s global economy (Gunasekaran and Kobu 2007). A supply chain is a dynamic, stochastic, and complex system that might involve hundreds of participants. It can be defined as a network of suppliers, manufacturers, distributors and retailers, who are collectively concerned with the conversion of raw materials into goods that can be delivered to the customer. Companies associated in the same network require efficient supply chain integration in order to optimize their collective performance (Khaji & Shafaei, 2010). Supply chains, as complex networks, are usually studied from different structural perspectives, such as dyadic, serial, divergent, convergent and network (Huang et al., 2003). The key issues in supply chain management can broadly be divided into three main categories: (i) supply chain design (ii) supply chain planning and (iii) supply chain control (Shankar, et al., …show more content…
To capture the structural dimension of the supply chain risks the literature classifies two types of upstream and downstream risks. Downstream risks usually relate to the fluctuations in demand, volatile market conditions, customer behavior, technological changes and shorter product life cycles. At one end these risks are associated with the physical distribution and product flow towards the downstream side and on the other hand they are related to forecasting issues. These risks are usually the outcome of a mismatch between actual demand and projected demand resulting in a demand and supply mismatch throughout the supply chain (Szwejczewski, et al., 2008). Lockamy III and McCormack classified supply chain risk sources into three categories: operational, network and external (Lockamy & McCormack, 2010). Any of the mentioned risks threat the overall performance of SCs and their profitability. As a result, SCs should be capable of predicting the risks and have the ability to deal with them. Therefore, risk management is an important concern of SCM. SC risks could be managed through designing a robust network and an efficient management of product flow throughout it (Farahani, et al., 2014). Some planning approaches aim at exploring the uncertainty inherent in a supply chain, and developing
A way to mitigate this challenge is by outsourcing the production and selling the product in large number of pieces. A company will always face risks at every level when trying to achieve a new goal. However, a good strategy will help to foresee those risks and an efficient way to mitigate them. 1.
Trader Joe 's is a developing chain of supermarkets with a distinction. Whilst not a gigantic chain store, Trader Joe 's accentuates little stores which offer a choice of merchandise hard to discover somewhere else at lower costs. The way that quality merchandise come at such low costs is only one motivation behind why the Trader Joe 's organization has turned out to be so fruitful. From humble beginnings, the organization has now developed into a multi-billion dollar monster.
In this walk through a supply chain, we will start with a package of M&M’s purchased at the retail store Target. Supply chains encompass all the processes, services, back office processes, and subordinate finished goods used to manufacture the M&Ms. What one will quickly realize is that there are multiple supply chains working together to move raw materials from a farm, transporting the goods to downstream supply chain members, and providing supporting services and ancillary products required within parts of the chain like manufacturing or distribution. Interestingly, supply chains can be horizontal (distributed), or they can be aligned vertically, where one entity of the supply chain controls the entire chain. One may suggest that an effective
This method allows the company to ask itself questions about its supplier base and to determine if it should forge long-term partnerships, change suppliers, and determine which one would make the company more profitable. (Wisner, Tan & Leong, 2012) Using these analytics, CSX can now assess “where it was yesterday, where it stands today, and where it wants to go in the future to meet its strategic purchasing goals.” (Wisner, Tan, & Leong, 2012 p. 94) The Supply Chain Strategy of CSX. “The business strategy should directly guide the supply chain design.” (Seghal, 2010, p. 143)
In other words, increasing fluctuations in inventory in response to shifts in customer demand as one moves further up the supply chain. It also means that variability of demand increases when it moves up the supply chain away from the customer’s order. Therefore, small changes in orders causes large oscillations in supply chain parts. There can be several reasons such as lack of communication between supply chain partners, price fluctuations, order batching and updating demand forecast at each stage. In our game, lack of communication between supply chain parts and unknown customers’ demand are the main reasons of fluctuations in the effective inventory level.
Brand described as a network of facilities and distribution options. The researchers argue the supply chain include different functional areas such as inbound and outbound transportation vegetables, chicken and meat, warehousing, inventory control, suppliers foods, supply management forecasting, production planning, order processing and customer services (Dwivedi, Dwivedi and Tewari, 2014). Supply chain management consists of managing the production network from raw material supplier to final customer. Regardless of any doubt, any industry faces a range of challenges in the supply
The risk management process establishes the methodology for risk enterprises framework for the of many businesses (Fraser & Simkins, 2010). A retail business such as Target needs to do a risk assessment to establish the types of risks being faced by the organization. The risk assessment process starts with the identification and categorization of risk factors. High customer interaction of the retail businesses like Target, need to identify risk as a continuous basis effort over the lifetime of the business (Mandru, 2016). It important that the business leaders, set goals and priorities for the risk management system.
A supply chain is an overall network of vendors, distributors, manufacturers, retailers and other entities that are directly and indirectly linked for the purpose of serving the needs and demands of the same customer. This interconnected and synchronized chain excessively allows services and products to reach a large number of customers, both on national and international level. Horizontal integration is one such tool which is used by entities along this supply chain to expand market penetration and establish growth in the business world. Horizontal Integration is the expanding of a business at the certain specific point within the supply chain, either within the same industry or a different industry. A company can achieve this growth through
With the acquisition in 2005, Lenovo jumped long from being the world's ninth largest computer company to the third largest. together with that came the challenge of integrating two sizable supply chains, that had completely different target markets and were in operation on an individual basis. once Gerry Smith joined Lenovo in 2006 he pushed to own one consolidated supply chain. There was lots of confusion - from procurement to producing to logistics - as a result of they lacked a singular, common purpose. Operations required to be stabilized first, then the work began to bring the supply chains along, with efficiency and systematically.
Even when plans are completed they can be modified. These modifications can address other issues not foreseen in prior construction of the security plan such as various forms of Risk management. These four are pure, dynamic, speculative, static, and inherent. These risks range from natural disasters to lack of customers due to the time of year. The element of risk management is an essential because it outlines key functions that are very important to any business.
The Value Chain 4 4. Operations Strategy Implications (Store level) 5 5. Inventory Management and Demand Forecasting 9 6. Supply Chain Management 9 7. Quality Management 11 8.
Q. 2. Recent development in Technology has enabled huge global organizations to avail information easily in their premises for smooth functioning of various departments within an organization. Much of a company's success comes down to its Supply Chain Management and logistics. The development of Information Systems in SCM helps in cost reductions, customer satisfaction and productivity.
In the early 2000s, The Boeing Company faced many challenges with increasing competition in the commercial aircraft market. To remain competitive, they began the development of their 787 Dreamliner aircraft using an unconventional approach in terms of supply chain management. The historical approach that Boeing used on previous aircraft designs required Boeing to procure raw materials and subassemblies from several different suppliers and manufacture the final assembly in house. Dreamliner sought out to be the first of Boeing 's kind to outsource 70 percent of its major subassemblies under a Partnering for Success initive (5) , leaving Boeing to assemble the final assembly performed in-house. Build airplanes the same way the automobile industry
The best companies in the world are discovering a powerful new source of competitive advantage. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers. The Supply Chain Management program covers topics from manufacturing operations, transportation, purchasing and physical distribution for a single program. Coordinated the successful management of the supply chain and all these activities integrated in a continuous process.
Video one illustrates the importance of supply chain managers and their skill sets in our modern global economy for both manufacturing and service industries. Here the speaker stated that the product cost does not equal to the material cost; and that supply chain make things move, sell, and service it; it can also be used to manufacture service experiences as the same they do in manufacturing product. The video also hopes to encourage children about the opportunities available to those with supply chain management degrees. Module two explains the critical role supply management plays in producing high quality products and services. For a better understanding, supply chain management can be also call the management of the chain of supply.