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Production Scheduling
Push / Pull
Strategy
Traditional Focus
Push
Start of
Production
Manufacturing
Inventory-
Based
Mass Production
Customer Focus
Pull
Customer-Order
Based
Mass Customization
Just-in-Time Manufacturing
A process that redefines and
simplifies manufacturing by
reducing inventory levels and
delivering raw materials at the
precise time they are needed
on the production line.
JIT
Benefits of JIT
For manufacturers: reduces raw
material inventories; immediate
shipping of products
For suppliers: daily or hourly deliveries
rather than weekly
For customers: lower costs; shorter
lead times; products tailored to
customer needs
Order Processing
Order processing is becoming more automated
through the use of computer technology known
as ELECTRONIC DATA INTERCHANGE (EDI).
a system whereby orders are
entered into the supply chain
and filled.
An Order Processing
System is
Inventory Control
Inventory
Control
System
A method of developing and
maintaining an adequate
assortment of materials or
products to meet a
manufacturers or a
customers demand
Inventory Control
Tools for managing inventory include:
materials requirement planning (MRP) or
materials management supplier to
manufacturer
distribution resource planning (DRP)
manufacturer to end user
automatic replenishment programs
minimal forecasting
Warehousing and
Materials Handling
Most manufacturers today have moved to
AUTOMATED materials-handling systems to
minimize the amount of handling.
a method of moving inventory into, within,
and out of the warehouse.
A Materials-Handling
System is
Transportation
Airways
Water
Pipelines
Motor Carriers
Railroads
Transportation Mode Choice
Cost
Transit time
Reliability
Capability
Accessibility
Traceability
Exhibit 14.1
Criteria for Ranking Modes
of Transportation
Trends in Supply Chain
Management
Discuss new technology
and emerging trends in
supply chain management
Trends in Supply Chain
Management
Electronic distribution
Outsourcing of logistics functions
Advanced computer technology
Advanced Computer
Technology
Automatic identification systems
- Bar coding
- Radio frequency technology
Communications technology
Supply chain software systems
Outsourcing Logistics
Functions
Outsourcing Benefits
Reduce inventories
Locate stock at fewer plants and distribution
centers
Provide same or better levels of service
Electronic Distribution
a distribution technique that includes
any kind of product or service that
can be distributed electronically,
whether over traditional forms such
as fiber-optic cable or through
satellite transmission of electronic
signals.
Electronic Distribution is
Green Supply Chain
Management
Requires integrating green thinking into all
phases of the supply chain
Green materials sourcing
Environmental impact of packaging,
shipment, use
Incorporate end-of-life management
Recycling
Clean disposal
Global Logistics and Supply
Chain Management
Logistical challenges of global markets:
Understanding and coping with the
legalities of trade in other countries
Uncertainty regarding shipping
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Chapter 14 Videos
Sephora Supply Chain
Management
How does Sephora manage its supply chain?
What information goes into deciding which
suppliers become incorporated?
http://www.cengage.com/marketing/boo
k_content/1439039429_lamb/company_c
lips/ch14.html